WASHINGTON ¨C As soon as policymakers averted a crisis in Cyprus, another appears to be brewing. The latest country to provoke concern is Slovenia.
The small former Yugoslav republic took a beating Friday, with long-term bond yields spiking to 5.4 percent amid fears the country would need a bailout. Those aren¡¯t crisis-level rates ¡ª Cyprus¡¯ yields are around 7 percent, for comparison ¡ª but it¡¯s certainly in the danger zone. How did Slovenia get here, and why?
It¡¯s a small, open economy that joined the European Union in 2004 and quickly pegged its currency, the tolar, to the euro. In 2007, it adopted the euro.
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