Liquidity of businesses good but deteriorating, FinMin says

Brussels – The liquidity of companies in Slovenia is good, but deteriorating. The government is working on new schemes to help businesses capable of surviving the crisis, Finance Minister Andrej Šircelj told his counterparts from other EU countries and the Eurozone in online meetings on Monday and Tuesday.

Talking to Slovenian journalists in Brussels today, Šircelj said that this crisis was not the same as the financial crisis. The latter hit all sectors, whereas the current crisis has shut down some sectors completely, which means that tourism, hospitality and entertainment will need special exit strategies.

Currently, “the liquidity situation is good. Banks are stable and safe, and I believe they are capable of servicing the economy. Also in terms of non-performing loans, we are in a better situation than others,” Šircelj said.

While liquidity of Slovenian businesses is good at the moment, it is deteriorating, said the minister. Therefore, the government is planning new aid schemes via individual funds, such at the SID Export and Development Bank.

Some schemes already exist, while new ones will also be drawn up, including for the Enterprise Fund. The funds will be available to companies capable of surviving and developing.

Šircelj also noted that the government adopted last week the decision to join the European Investment Bank’s (EIB) Pan-European Guarantee Fund.

The measures will focus on preserving and creating jobs, said Šircelj, adding that the planned exit scheme will have to envisage new jobs at companies developing new services or products.

When asked when the EU should return to its budget spending rules, Šircelj said after the crisis ended. Rules allowing exceptions will be in place until the end of the year, with the Commission and member states to discuss a way forward before the summer.