The government of Slovenia is due to unveil an economic action plan that it hopes will help it avoid an EU bailout.
The plan, which will be presented to the European Commission, is expected to include tax increases, banking sector reforms and privatisations.
Slovenia's mostly state-owned banking sector is suffering from mounting bad debts and the government has struggled to borrow money.
The country's economy has been in recession since 2011. Analysts have cited Slovenia as the most likely country to seek help from the EU following the bailout of Cyprus earlier this year. European officials have expressed concern over the stability of the country's banking sector.
The government's ability to borrow money was dealt a blow last week when Moody's, a ratings agency, cut Slovenia's bonds to "junk" status.
Despite this, the government was able to raise 3.5bn euros (£3bn; $4.6bn) from international bond markets last week, but at relatively high rates of interest. Analysts say the funds buy Slovenia time, but do not address the underlying economic and financial problems.
The plan, due to be presented by the newly-formed government of Prime Minister Alenka Bratusek, is expected to include tax increases to shore up public sector finances.
The country is also planning a "bad bank" to take on the financial sector's bad debts. The governor of Slovenia's central bank, Marko Kranjec, is also advocating the privatisation of some banks. The European Commission will study the plan before recommending action.
bbc.co.uk
Slovenia's mostly state-owned banking sector is suffering from mounting bad debts and the government has struggled to borrow money.
The country's economy has been in recession since 2011. Analysts have cited Slovenia as the most likely country to seek help from the EU following the bailout of Cyprus earlier this year. European officials have expressed concern over the stability of the country's banking sector.
The government's ability to borrow money was dealt a blow last week when Moody's, a ratings agency, cut Slovenia's bonds to "junk" status.
Despite this, the government was able to raise 3.5bn euros (£3bn; $4.6bn) from international bond markets last week, but at relatively high rates of interest. Analysts say the funds buy Slovenia time, but do not address the underlying economic and financial problems.
The plan, due to be presented by the newly-formed government of Prime Minister Alenka Bratusek, is expected to include tax increases to shore up public sector finances.
The country is also planning a "bad bank" to take on the financial sector's bad debts. The governor of Slovenia's central bank, Marko Kranjec, is also advocating the privatisation of some banks. The European Commission will study the plan before recommending action.
bbc.co.uk
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