The Slovenia Times

Govt to Borrow EUR 900M This Year to Finance Current Spending


The government initially believed it had pre-financed the 2015 budget to a sufficient degree in previous years.

However, the recently adopted supplementary budget widened the projected deficit and debt repayments are higher than originally expected, which requires additional financing.

The fresh borrowing is a part of changes to the Budget Financing Programme adopted today.

The programme was also amended to allow the government to additionally borrow to cover EU cohesion policy payments, specifically in situations where requests for reimbursement from the EU budget have been made but the funds now not yet transferred.

The government has been under pressure to embark on more borrowing in order to leverage record-low interest rates, either to finance current spending or roll over existing debt.

The rates on Slovenia's benchmark 10-year bond have dropped below 1%; the last time Slovenia issued a bond, in October 2014, the yield was 2.4%.


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