The Finance Ministry would not comment on the dollar bond issue as yet today, saying that the public would be notified about the matter on time. More details are expected to be available next week, according to Šircelj.

Šircelj, addressing reporters in Ljubljana, cited Bloomberg data which put the yield on the Slovenian ten-year bond on the secondary market at 5.66%, which he noted was much lower than weeks and days ago.

"Slovenia is borrowing at a relatively good interest rate, much lower than expected, which is why it is under obligation to carry out the promised reforms," he said.

Slovenia will decide itself how many bonds it will issue in the end, but Šircelj expects the issue to exceed the planned US$1.5bn considering the favourable situation in the market.

Citing Bloomberg, the online edition of Finance has reported that Slovenia has issued EUR 2.25bn (EUR 1.72bn) worth of ten-year bonds at an interest rate of 5.75%. Bloomberg obtained the information from Nick Darrant of BNP Paribas, one of the banks arranging the issue.

Šircelj said commitment to reforms was critical in winning investors' confidence. The bond issue "comes at a right time and right place with investors trusting us", said Šircelj, who would not disclose the investors because, as he said, the issue was still ongoing.

But Janko Veber of the opposition Social Democrats (SD) was less upbeat, warning at a separate news conference that Slovenia was looking at the costliest borrowing ever, also due to exchange rate risks.

The difference between the exchange rate of the euro and the US dollar could generate an extra 300 million costs, Veber estimated without specifying whether he meant euros or dollars.

"We could have sold bonds in the European market as early as March at a much lower interest rate," Veber said. Šircelj denied the claim arguing that the exchange rate risks were being "kept under control".

Veber again criticised the government's plans to sell state assets at what he said would be the lowest possible price, arguing that despite the difficult situation Greece was not selling "state heirloom".

He blamed "Prime Minister Janez Janša's mismanagement" for the deterioration of the situation in Slovenia, warning that it could lead to a further decline in Slovenia's credibility in the eyes of international markets.