The Slovenia Times

Eurogroup Chief: Quality of Stress Tests Priority

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Admitting that the process of assessing Slovenian banks was taking longer than planned, Dijsselbloem said that "it was crucial that the assessments are done according to the highest standards".

The results must be credible and accurate so that Slovenian people and international investors "know for sure that the banks are in a healthy state in the future," said the Dutch finance minister, who met senior Slovenian officials as part of his visit here.

He denied that Slovenia was serving as a guinea pig for stress tests that are to be conducted at systemic banks in the EU next year, while saying he could not pinpoint the reasons for the delay.

"I feel free to deny that [Slovenia is acting as a guinea pig] for the simple reason that...we have built up some experience through Europe since the financial crisis," he said, pointing to bank rescue programmes in Spain and Ireland.

Suggesting that specifics of the country's banking system could be a reason that the process was taking longer than expected, he rejected the notion that the delay made it more likely Slovenia would need to tap the European Stability Mechanism.

"There is no indication what the outcome might be," he said, highlighting that "going through bank books is a painstaking process".

He also denied that his visit, as well as that of a regular IMF mission which is currently in the country, meant that Slovenia was being watched more carefully. "No, but I think the good thing to come out of the euro crisis is that we all watch each other more closely."

Dijsselbloem, who made his comments after meeting Slovenian Finance Minister Uroš Čufer, expressed support to Slovenian efforts to fix its banks and set the economy on the track to growth.

Čufer labelled the talks as an opportunity to lay out the country's reform plans and views on how to deal with the banks. "I think we are pretty much on the same page," Čufer said.

Dijsselbloem, who also met President Borut Pahor and PM Alenka Bratušek and visited parliament, also touched on efforts to introduce the bail-in principle in the EU which would require struggling banks to tap their shareholders and bondholders before being able to get taxpayer bailouts.

"It would seem to me that banks which comply with capital requirements and fail stress tests...are quite healthy and that they should be able to get capital from private markets," he said.

In this respect, he said he supported the view of European Competition Commissioner Joaquin Almunia that state aid for banks must be reserved for exceptional cases.

"I think that state aid rules should apply. There is a possibility for exemptions, but only on an individual cases and in case of threat to financial stability."

He also rejected the view that fiscal tightening in the EU was being conducted too quickly and thereby hurting chances for a recovery. He stressed that process had been underway for a few years and that it would continue in many countries for the coming years due to extensions granted by the European Commission.

"In practice people think we are being harsh and quick but countries have been granted more time by the European Commission in order to deal with the economic setbacks and with the budget at the same time."

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