12 December 2013

Statements by Eurogroup President Dijsselbloem and VP Rehn on Slovenia

Eurogroup/Dijsselbloem

Today, the Slovenian authorities have presented the results of the stress test and asset quality review. I am confident that the recapitalisation of the banking sector, in combination with the implementation of the measures aimed at restructuring the financial as well as the corporate sector, will stabilise Slovenia's banking sector. Stronger banks and an improved business environment will lay the foundation for the economic recovery.

I welcome the transparent communication of the results and was reassured by the Slovenian authorities that they will use their own sovereign capacity to adequately cover the final capital needs of the banking sector.

The analysis, which covered 70 per cent of the Slovenian banking sector, was conducted by external consultants and supervised by a Steering Committee comprising the Bank of Slovenia, the Slovenian Finance Ministry, the European Commission, the European Central Bank and the European Banking Authority.

Full statement

VP Rehn

Rehn also welcomed the publication of the independent assessment. He commented:

"I look forward to the effective implementation of the strategy for banking sector repair and modernisation outlined by the Slovenian authorities. This represents a convincing and robust response to one of the key challenges facing the country. It is also critical that Slovenia moves forward with the broader economic reform agenda, in particular strengthening corporate governance and carrying out privatisations and regulatory reforms to improve the business environment. Swift and decisive progress on all of these fronts will be essential to restore confidence, boost investment and create the conditions for sustainable growth and higher employment. The Commission will continue to closely monitor the implementation of the relevant policies, in partnership with the Slovenian authorities.

When the Commission concluded eight months ago that the Slovenian economy was suffering from excessive imbalances, I stated that the situation was still manageable provided swift and decisive policy action was taken. While significant challenges remain, I am pleased to say that this has so far been the case. Today it is clear that Slovenia can proceed with the repair of its financial sector without turning to her European partners for financial assistance. This is good news and demonstrates both the paramount importance of decisive action by the authorities and the fact that the overall economic recovery of the eurozone is now solidly underway."

Press statement

Slovenian Government

At today's press conference following the publication of the results of stress tests, the Minister of Finance, Uroš Čufer, and the Governor of the Bank of Slovenia, Boštjan Jazbec, announced that a total of EUR 3.012 billion would be required to increase capital at three banks (NLB, NKBM and Abanka).

Mr Jazbec said that after the capital increases, NLB and NKBM would be among the better capitalised banks in the eurozone and rejected all speculation about the security of the Slovenian banking system. Mr Čufer stressed that the capital increases signify a major step towards achieving a stable banking sector and re-starting the economy.

Press statement

Bank of Slovenia and Slovenian government announce results of stress tests

Full report

ECB-opinion on measures to strengthen bank stability, 9.12.13

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