Shares

I disagree with the generalisation of the critical situation in Slovenian companies. At the same time I do not understand those who do not believe in business growth, and only rely on investments financed by debt or real estate.

Without long-term effective and efficient companies, other forms of investment assets will come under serious question. I believe that Slovenian managers recognise the new realities in the markets and will be able to successfully adapt and take advantage of opportunities.

I am convinced that the development could be faster and the economic situation would be better if Slovenia had more foreign investment and more private sectors. I am a reserved optimist for 2012 and beyond."

Božo Jašovič, president of the board, NLB bank

When we talk about a potential influx of foreign capital we must be aware that any investor, before deciding to invest in Slovenian companies, will thoroughly review the macroeconomic and political situation in the country and the guidelines of the latter for the coming period. If we talk about foreign investment in general, we have to mention, from the viewpoint of the investor, Slovenia's not particularly attractive tax laws, while in regards to the current situation on the Slovenian stock market we need to emphasise some other factors.

Our stock market is currently quite illiquid, as our equity trading volume cannot be compared with other Eastern European stock exchanges. Liquidity is the main reason for the continued decline in share prices, and we often feel that in some cases this does not reflect the way some companies are operating.

According to figures from the Central Securities Registry, in the past year all major issuers have seen an increase in the share of foreign holders of securities, while the overall number of holders has fallen. This leads to the conclusion that, in addition to the lack of interest amongst foreign investors, the decline in rates is also due to the attitude to sale by domestic investors. As a result, we are in the middle of a general state of distrust in domestic securities. This is particularly evident after the publication of business results when, in the vast majority of cases, investors are not even rewarding those companies that demonstrate good results.

There are quite a few such companies in our country. I have no fear that their good business results will sooner or later be reflected in higher share prices. In illiquid markets this will, however, take some time. In the future we can also expect that companies that have a good strategy and want to grow will begin to seek listings on foreign stock exchanges. Recently we have been reading an increasing amount about this in the media.

In these cases the abilities of the management teams of Slovenian companies will become evident. This is because for such moves a number of "roadshows" are necessary where companies' future plans are presented and which aim to convince potential investors to put their capital into the company.

The problem remains with the low profitability of our companies compared to our competitors abroad, and consequently lower net return on capital. Another aspect which needs to be addressed here is the amount of large companies whose shares are included in the index of major European stock markets, which, in order to increase their own recognisability, have to spend significantly more abroad than in Slovenia.

Klemens Nowotny, president of the board, Raiffeisen Bank

"Yes, I have confidence in the Slovenian economy and its competiveness. I further believe in the future improvement of the economic and legal environment. This will support further development, strengthening and substantially increasing the Slovenian high tech industry segment, and attracting foreign direct investment. Slovenia will need both to continue its successful ways."

Matjaž Kovačič, president of the board, Nova KBM Bank

Slovenia is a country that despite its small size boasts many successful, interesting, creative and profitable enterprises. At Nova KBM we believe in Slovenian companies and their good business ideas.

It is true, however, that the Slovenian capital market is in crisis. For two years we have been eagerly awaiting the recovery, but it is yet to happen. The reasons for this are multiple. Among the most important are certainly the tougher conditions in the economy, Slovenia's attitude towards foreign investors, and the extremely poor liquidity of the Ljubljana Stock Exchange.

However, this in no way changes the fact that the Nova KBM has confidence in the Slovenian shares. We believe that we need to trust in them first - both companies and individuals - and only then will they also gain the trust of foreign investors.

We mustn't forget that one of the main pillars of the Slovenian economy is small and medium-sized enterprises. At Nova KBM our own entrepreneurial centres represent one of the key solutions for creating such companies by providing them financial and economic consultancy, advice on obtaining subsidies from the European Union and helping them to achieve business objectives. And to the best of those companies - which are chosen by an expert committee - we approve loans and financial and economic support. We support the idea of start-up companies. We believe that the innovative business models of these companies present a gateway to the global market, thus showing a good example of small countries worldwide.

Cvetka Selšek, president of the management board, SKB Bank

"You are asking an interesting question and it is becoming more urgent for Slovenia to show foreign capital that it is capable of transparent and complete transactions, even in the case of larger companies.

Foreign investments are generally those that revive the economy. A small economy such as Slovenia's therefore needs even more such investments.
I'm currently working on a case which will, if successfully implemented, certainly have a positive impact in strengthening the image of Slovenia in international financial circles. In short, the answer is yes."