In the letter, sent in the run-up to today's publication of the Commission's assessment of Slovenian reform programmes, Čufer expressed among other things readiness to work with the Commission and the ECB to ensure asset quality reviews are conducted for a selection of banks.

The government is ready for this as long as these reviews do not impede with the timely transfer of the first tranche of impaired assets planned for June, according to a summary of the 23 May letter published today in a European Commission working document.

Moreover, the Slovenian government is ready to cover any additional capital shortfall revealed in this process.

The assurances come in the face of the Commission's doubts about the assessment that EUR 900m will suffice to recapitalise state-owned banks and its call on Slovenia to "contract an independent external adviser by June 2013 to conduct a system-wide bank asset quality review".

Čufer announced in the letter that measures to strengthen bank balances sheets will be followed up with a consolidation of the banking sector, which is also mentioned in the Commission's recommendations.

The Commission also expects the country to push ahead with privatisation of the NKBM bank and prepare by September "an ambitious timetable for the divestment of direct and indirect state shareholdings of banks".

According to Čufer, the government has committed to full divestment of its stakes in the 15 companies that the government earmarked for privatisation on 8 May and expects parliamentary approval before the end of the second quarter of 2013. Telekom Slovenije and NKBM are among the companies slated for sale.

The minister moreover announced that a strategy for the management of state assets will be ready by the end of September and that any outlays of public funds on corporate restructuring will be offset against other expenditure items.