Ljubljana, 10 July (STA) - Slovenia's central bank is drawing up a list of measures aimed at tackling bad claims and encouraging economic growth in cooperation with the government, the Bank Association of Slovenia and banks, Banka Slovenije said in a press release on Tuesday.
The central bank's information regarding risks in banks' loan portfolios
is up-to-date and the bank has a clear picture of potential losses, the
press release reads.
The central bank said it keeps constant track of
banks' capital adequacy and the extent of risky investments and
$We expect the banks to speed up their activities
to tackle bad investments and start providing loans to solvent
clients,$ the bank noted, adding that all Slovenian banks were
However, $since the situation in the economy
is deteriorating, we cannot rule out the possibility that portfolios will
have to be cleaned up$.
The banks must be shored up, and Banka
Slovenije is ready to intervene should a bank require such a move, the
central bank noted.
Banka Slovenije has drawn up a set of measures
that could be implemented if legislation was changed to grant it powers
comparable to those of regulators in other EU countries.
will do our part by the end of July and send our reports and proposals to
the government,$ the central bank announced.
Governor Marko Kranjec told the national broadcaster RTV Slovenija on
Monday that all banks were currently solvent, but the central bank was
nevertheless concerned about the souring of their credit
It is also too early to say whether Slovenia will have to
request EU aid, but $this is a possibility if economic policies are
not sufficiently stabilising$, the governor added.