Governor says Cenral Bank scapegoat for politicians
According to Saturday supplement of the newspaper Dnevnik he told that the bank was a handy scapegoat because of its independence from the politics and because it had to do the work others did not or did not want to do.
Jazbec stressed that facts proved Slovenian banks had been in a very bad shape up to 2013 and that several opportunities to shore them up had been missed.
Had action been taken on time, the erasure of subordinated bank bonds in the 2013 bank bailout would probably not have been needed, he said in an interview for Objektiv. Jazbec is also certain that Banka Slovenije's measures were warranted, because Slovenian banks today have enough capital in comparison to banks in the eurozone.
He moreover said that the central bank had tried to limit borrowing during the loan hike, "but international auditors did not back the proposal". "As you know, we wanted to introduce dynamic reservations, like Spain did, and Banka Slovenije demanded recapitalisation of banks several times during the crisis, but the government did not listen."
Jazbec also reiterated that the capital shortfall at banks had been assessed accurately, as toxic loans of Slovenian banks were being sold at 80% discounts even three to four years after the bailout.
"Individual cases cannot change the findings that Slovenian banks had negative capital at the end of 2013 and that the shoring up of the system was the better option for taxpayers than international help," he noted.
Touching on the recently unveiled bill ensuring efficient legal recourse in the legislation underpinning the 2013 bank bailout, Jazbec said he expected the bill to speed up the entire process, but that it now seemed procedures would be longer, as the bill envisages proceedings to be held at first instance courts.
"It would have been more suitable if the bill followed the resolution and compulsory dissolution of credit institutions act in the part about the exclusive authority of the Supreme Court and one-instance decisions. But, the law will, according to the proposal, give us the legislative basis to reveal all data that we cannot under the existing law."