The Slovenia Times

FinMin, Gov, Meet Ivestors as Slovenia Readies for Q1 Bond Issue

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The investors are well informed about the situation in Slovenia, which has improved a lot since the April IMF-World Bank meeting, Čufer told reporters in Washington, DC, on Saturday.

"When we summed up with investors what we have done since then...it is more or less clear we delivered on our promises," according to Čufer.

The one thing that is missing is bank restructuring, but that has been held up by European Commission demands for stress tests.

Čufer noted that investors were keeping a close eye on political stability and were sometimes surprised by comments of "local players".

But this is "local folklore they have to think away...investors have a much better opinion about Slovenia than domestic media do," said Čufer, who added that the government was mulling issuing new debt in the first quarter of the year.

Governor Jazbec told reporters that Slovenia would have to borrow next year in order to roll over debt and finance current liabilities. The only question is whether it can borrow from private investors or would be forced to seek international aid.

"Investors are interesting in the state's role in the economy and the corporate governance problems that got us into trouble. The minister is attempting to convince them the measures are designed to give us access to international financial markets and borrowing at moderate interest rates," he said.

Jazbec lamented the delays in bank stress tests that have postponed the entire bank restructuring effort, but he said this was due to methodological issues and complexity of the tests.

"The problems are normally solvable, but they are delaying the release of the data. It is in everyone's interest that the data are good. Quality and accuracy of data is more important that the time frame."

Jazbec expects the first transfer of non-performing loans onto the bad bank in late November.

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