(MENAFN- Qatar News Agency) Slovenia's recapitalisation of banks affected by the global financial crisis has more than tripled its budget deficit to 14.7% of its GDP in 2013, according to official data. Slovenia injected into its ailing banking sector euros 3.6 Billion to avoid an international bailout last year, the National Statistics Office said. Excluding the bank recapitalisation, the 2013 deficit was 4.4% of GDP, the office said. The 2012 budget shortfall was 4% of GDP.
The budget shortfall would drop 4.2% in 2014 including the further planned 321 million euro injection into lenders Abanka Vipa and Banka Celje later this year. Bank of Slovenia Governor Bostjan Jazbec has said banks' bad loans had piled up since December up to euros 11 Billion or 31% of its annual economic output.
The key fiscal measure for Slovenia is the central government deficit, which excludes the bank recapitalisation programme and which it needs to cut to 2.9% of economic output this year to avoid possible European Union penalties. Slovenia is issuing euro-denominated bonds for at least euros 1.5 Billion over the next few days to cover the deficit and pre-finance debt maturing in 2015 and 2016, according to reports
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