NEWS
Prime Minister’s press conference
At today’s 80th regular session, the Slovenian Government, alongside other resolutions, adopted the text of the Act Governing the Guarantees of the Republic of Slovenia for Financing Company Investments. The objective of this Act is to enable Slovenian companies to take out long-term loans for financing investments that will increase value added per employee or the number of jobs in a company. Prime Minister Pahor and the responsible ministers first presented the Government’s position on financial assistance to Greece, and then Mr Pahor answered several topical questions.
(Photo: Tamino Petelinšek/STA, vir: UKOM)
According to this Act the state and the bank share the risk of financing such investments, whereby the state guarantee covers 75% of the risk and the bank covers the remaining 25%. The state, however, provides a guarantee solely for the principal, which means that the bank alone takes the risk of costs and potential interest, and thus subsequently plays a proactive role in the overall financing scheme of an individual project. Loans must be secured but it is sufficient to use collateral for the principal, thus easing the borrower’s burden with respect to excessive collateral, while at the same time allowing the bank and the state as guarantors at least partial payment of their claims. On behalf and for the account of the Republic of Slovenia, procedures for issuing guarantees will be conducted by SID Bank that will also be authorised to process and store data on the financial standing of borrowers. This data will be used for calculating premiums to be paid by borrowers for guarantees in line with the EU rules on state aid.
At this session, the ministerial corps adopted the Government's position on financial assistance to Greece. According to the Prime Minister’s statement at the press conference, “the Slovenian Government, together with other Member States of the Euro zone, supports the aid programme for Greece with a view to ensuring the stability of this area, in which Slovenia has recognised and realised its vital economic and export interests.” Slovenia's accession to the Euro area (EMU) about three years ago represented the completion of its efforts to integrate into the economically most developed and stable environment. The Slovenian Government has decided to take part in the aid programme because the Euro area constitutes our country's key export markets. Moreover, destabilisation of this area would be particularly painful for a small, open and integrated Slovenian economy. In addition, Prime Minister Pahor said that “Slovenia has not decided to take this step unconditionally but makes its participation in this mechanism subject to strict compliance with Greek austerity and reform measures, as well as to institutional reform of the euro area.”
The Prime Minister further stated that “the Government in the period of transition from high economic conjuncture to deep recession managed to save Slovenia from the black scenario. We belong to a group of countries which at this moment most flexibly and successfully deal with the crisis.” In addition, Mr Pahor warned of some most decisive months lying ahead indicative in regard to what group of countries Slovenia was likely to belong to in the coming decade. “It is my duty to try, through a social dialogue, to strengthen our confidence into belief that what we are doing is done for the common good and that this is good for Slovenia's future,” stressed Prime Minister Pahor, and added that “Slovenes are at their best when circumstances are at their worst.”