EU Court Rules Slovenia’s Bank Bondholder Wipeout Was Legal

The European Union’s highest court ruled that Slovenia broke no laws when it imposed so-called “burden-sharing” in the 2013 banking rescue that wiped out about 600 million euros ($664 million) of bondholder debt, Bloomberg News reported today. The ruling may lend support to the euro member’s central bank, led by Governor Bostjan Jazbec, after it was raided by Slovenian police earlier this month on suspicion of wrongdoing during the bank rescue. The 3.2 billion-euro bailout was engineered during the European sovereign-debt crisis by Jazbec and then Prime Minister Alenka Bratusek’s cabinet to save the Adriatic nation from having to ask for an international aid lifeline like those taken by Greece and Ireland. Read more.