Slovenia overview


In Slovenia we focus on:

Corporate sector restructuring, expanding the role of the private sector and promoting good corporate governance. Lifting the obstacles presented by excessive leverage and poorly structured corporate finances is a precondition for preventing a rapid rise in insolvencies, stabilising the banking sector and arresting the on-going economic contraction. The EBRD is seeking bankable opportunities to help restore financial viability of companies with sound underlying businesses. We will participate in the privatisation of key enterprises currently under state control, either through debt or equity financing.

Stabilising the financial sector. In what will likely be a protracted process of deleveraging, recapitalisation and consolidation, the EBRD will assist in bank asset restructuring, support healthy banks with medium term funding for the real sector, and help build up alternative funding channels. Progress with balance sheet cleansing and credible commitment to governance reform in the banking sector will open up opportunities for providing support for the privatisation of state-controlled banks.

Supporting sustainable energy. The EBRD will explore sustainable energy and resource efficiency investment opportunities, particularly in the SME sector and the residential sector. The Bank will also actively seek opportunities to identify and finance investments that would increase the renewable energy generation capacity in the country.

The EBRD’s latest strategy for Slovenia was adopted on 26 February 2014

Current EBRD forecast for Slovenia’s real GDP growth in 2018 4.0%

Current EBRD forecast for Slovenia’s real GDP growth in 2019 3.3%

The Slovenian economy expanded strongly in 2017 by 5 per cent (speeding up from 3.1 per cent in 2016) on the back of growing investment and private consumption as well as exports. The growth is likely to slow down in the near term but will remain relatively strong, projected at 4.0 per cent in 2018 and 3.3 per cent in 2019. The medium-term outlook will depend primarily on the speed of structural reforms, which have progressed but are still far from completed. Although fiscal consolidation resulted in the budget deficit falling from 5.5 per cent of GDP in 2014 to 0 per cent in 2017, public debt remains high at 74 per cent of GDP at end-2017, implying a need for more reforms supporting fiscal sustainability in areas such as public wages, pensions, health and education. In addition, high corporate overindebtedness as well as the slow pace of business environment reforms and privatisation could act as a drag on growth.