2010-07-28

The EBRD’s Board of Directors has adopted a new strategy for Slovenia which reinforces the Bank’s commitment to further support the country’s economic transition to a market economy and sets out the priorities for its activities in the country over the next three years. As a result of the global financial and economic crisis Slovenia experienced a severe recession in 2009, with real GDP contracting by 7.8 per cent. Although some data suggest that a turnaround is in sight, the economy continued to be in recession through the first quarter of 2010.

Growth is expected to remain weak in the coming years. The crisis response and the financing needs of the recovery process will not be easy and will require support from private partners as well as international financial institutions, including the EBRD. The EBRD’s activity in Slovenia in the next few years will continue to be selective and focused on helping the country address its main structural reform priorities. The Bank will promote better governance, aid restructuring and plan for the eventual privatisation of enterprises remaining under state control once market conditions improve. The Bank will also support the regional expansion of Slovenian enterprises through cross-border investments or through participation in equity funds.

In the financial sector the Bank will help restructure bank balance sheets and improve governance in order to improve the sector’s efficiency and restore its ability to provide finance to enterprises, particularly to micro, small and medium-sized companies. If required, the Bank will also support the privatisation of banks and insurance companies remaining under state control. Another priority for the EBRD is to continue to encourage the participation of the private sector in infrastructure development, as well as to enhance the country’s energy security through investments in energy supply, with a special focus on renewable energy production.

The EBRD will continue its policy dialogue with the Slovenian authorities to help reduce the government’s role in the economy and to improve corporate governance standards. The Bank will coordinate its activities with other international financial institutions in order to mobilise financing for priority investments. Since the beginning of its activities in Slovenia, the EBRD has committed over €700 million in various projects in industry, energy, infrastructure and financial sectors. The Bank’s financing attracted additional investment of over €1.1 billion to Slovenian economy.