The Slovenia Times

Another blockade of reform efforts?


The government-proposed act was passed by the National Assembly on Thursday. If it becomes valid, it will establish a company that will take over bad claims from state-owned banks. In return, the banks will be offered bonds with state guarantee.

The veto proponents, among them economic expert Jože Mencinger and trade unionists Branimir Štrukelj, Lidija Jerkič and Drago Ščernjavič, believe that the bad bank would make poor management decisions the taxpayers' problem.

They believe this is also the most expensive solution for the taxpayer. Moreover, the act is completely unclear about what bad claims actually are, the proponents say, also wondering whether an attempt is not under way to provide subsidies for existing private owners with taxpayers' money.

They moreover argue that at least 10% of the assets obtained will have to be sold by the state-owned entity each year and that given the circumstances, this will have to be done at low pries, which will cause grave damage to state's assets.

In case the National Council vetoes the act, the National Assembly will have to take a re-vote. To overturn the veto, the act must be endorsed by the National Assembly with absolute majority.


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