Press release from the meeting of the Governing Board of the Bank of Slovenia of 30 June 2009

1. At today's meeting the Governing Board of the Bank of Slovenia discussed economic and financial developments. The fall in GDP in the first quarter has led to a sharp deterioration in the prospect for economic growth in Slovenia over the whole of 2009. The ranges of possible assessments of the effects of this fall are very broad, owing to uncertainty in the economic environment. As a rule, initially published figures are subject to subsequent revisions. There are currently no expectations of a further drop in economic activity over the coming quarters. According to available figures, some improvement can be expected in the second half of the year. However, the drop in economic activity in the final quarter of 2008 and the first quarter of 2009 was so profound that it will likely be reflected in a notable break in the trend of potential output. Economic activity is currently at the level recorded in 2006. This will be seen in employment trends over a longer period. 

2. The Governing Board of the Bank of Slovenia was also briefed on the Report on Slovenia's Economic Relations with the Rest of the World, April 2009, and on current banking operations and developments on the capital markets. 

3. The Governing Board of the Bank of Slovenia was briefed on the implementation of monetary policy in the second quarter of 2009. Participation in one-year longer-term refinancing operations, first executed on 24 June 2009, has provided Slovenian banks a longer-term source of funding. 

4. The Governing Board of the Bank of Slovenia was also briefed on an analysis of tariffs and an assessment of the revenues generated by banks and savings banks from payment services in 2008. A review of tariffs for high-value and urgent payments, low-value credit transfers, new payment instruments, cash withdrawals and the administration of residents' transaction accounts will be published at a later date on the Bank of Slovenia's website.