Slovenia’s bond rally, the biggest among Europe’s former communist nations, risks faltering as a government budget dispute following the cleanup of toxic-bank loans threatens to unseat Prime Minister Alenka Bratusek.
Slovenian Prime Minister Alenka Bratusek will seek a vote of confidence in her four-party government, which is embroiled in a dispute over how to raise funds and heal the budget after a bank bailout last year.
Slovenia is seeking bids for a majority stake in Telekom Slovenije d.d., the most valuable of 15 companies the government wants to sell and raise cash after a 3.2 billion-euro ($4.4 billion) bank bailout.
Slovenia is raising debt at its fastest pace on record as the nation plans the sale of 2 billion euros ($2.8 billion) in bonds, less than two months after it last went to the market, to tap lower borrowing costs.
Hungary is selling $3 billion of bonds and Slovenia picked banks for its second offering this year to seize on a drop in borrowing costs amid a respite in the emerging-market selloff triggered by the crisis in Ukraine.