EBRD pledges support for broad and sustained reforms in Slovenia

By Axel  Reiserer

The EBRD welcomes the recapitalisation plans announced by the Slovenian authorities today in response to the publication of the Asset Quality Review and Stress Testing of the country’s major banks. The EBRD supports the Slovenian authorities’ sustained commitment to the implementation of a broad reform agenda.

EBRD President Sir Suma Chakrabarti said: “The Slovenian authorities have reached a milestone in their reform efforts which should lead to reducing the role of the state in the real economy. The EBRD is ready to support these efforts and is reviewing investment opportunities both in the financial and the corporate sectors. We also stand ready to share our expertise to help Slovenia at this critical juncture in its economic reforms.”

Against the background of a weakened financial sector affected by continuing severe deleveraging, the EBRD stands ready to explore a variety of routes to make credit available for Slovenia’s real economy. Progress with balance sheet restructuring, reorganisation and a strong commitment to implement best practice corporate governance should open up opportunities for the EBRD to provide support to the privatisation of state-controlled banks.

Banking sector stabilisation will have to go hand in hand with ownership, financial and governance changes in the corporate sector to prevent a rapid rise in insolvencies and to put the economy back on the road to recovery. The EBRD will seek commercially feasible opportunities to help restore the financial viability of over-indebted companies with a sound underlying business model. The Bank intends to participate in the privatisation of key enterprises currently under state control.

The EBRD’s new draft strategy for Slovenia outlining the main orientations of the Bank’s activities – investments and advisory assistance – will be published on the Bank’s website next week for public consultation.