Efforts to recapitalise Slovenia's ailing banks, after EU-led stress tests last year unveiled considerable capital shortfalls, will end up an "expensive stop-gap solution" unless they are backed up by a "thorough clean-up" of balance sheets in both the banking and corporate sectors, the International Monetary Fund (IMF) has warned.

In a new report that calls on the Slovenian authorities to "step up" reform effortsm, the IMF writes: "The combination of an overly indebted corporate sector and weak