• Bail-ins and Haircuts: Is Slovenia Next in Line?
  • July 4, 2013 | Authors: Christopher Braithwaite; Lucas J. Moore; Stephen J. Pearson
  • Law Firms: Jones Day - London Office ; Jones Day - New York Office
  • Following the most recent manifestation of the European debt crisis in Cyprus, speculation is rife that Slovenia will be the next victim of the prolonged economic recession, together with its thinly capitalised banks. The European policy shift towards bail-ins (requiring investors to share in the cost of any rescue package) presents substantial risks for investors in the event that Slovenia is forced to seek financial assistance from Brussels or to restructure its sovereign debt. The approval of the European Union's Recovery and Resolution Directive by Finance Ministers on 27 June has further emphasised this shift.