Decisions adopted by the Governing Board on 6 December 2006
12/06/2006 / Press release
- At today’s meeting, the Governing Board of the Bank of Slovenia left the bank’s key interest rates unchanged. The interest rate level is in line with the maintenance of price stability and the stability of the nominal euro/tolar exchange rate.
The figures currently available indicate that economic growth in the third quarter was solid, but had slowed slightly from the strong level seen in the first half of the year. Evidence of this comes from the slight slowdown in industrial production, and certain indicators of activity in the service sector. However, there are still indications of strong growth in investment, and, partly associated with this, high growth in imports. The widening of the current account deficit in recent months has primarily been the result of significant growth in outward factor income and transfers. Borrowing inside and outside Slovenia is primarily focused on investment, as either corporate loans or housing loans.
Year-on-year inflation stood at 2.4% in November, up slightly from October’s low rate. The main factor in the rise in inflation in November was the elimination of the effect of high prices of refined petroleum products from last October. The current inflation rate of 0.3% and the estimated year-on-year core inflation rate of 1.7% point to favourable inflation trends. With growth in average wages remaining slow, this can be expected to remain the case.
- At today’s meeting the Governing Board passed a regulation on the tariff for charging fees for Bank of Slovenia services, which will enter into force on 1 January of next year. In addition to introducing a new tariff for insuring claims, the changes also relate to a number of substantive changes in current tariffs in connection with the introduction of the euro in charging for payment provision costs for Bank of Slovenia clients and for interbank payment services. The changes also cover the conversion of tolar amounts to euro amounts. The conversion has been made in accordance with the European Commission Regulation, and the provision on rounding set out in Article 19 of the Introduction of Euro Act. The prices have been rounded down and are given to two decimal places. The new tariff for charging for costs of insuring Bank of Slovenia claims derives from the Eurosystem’s requirements vis-à-vis the Bank of Slovenia as a new member, and the introduction of the single list of eligible assets on 1 January 2007.
- The Governing Board passed 14 regulations that make up the secondary legislation for the new banking act. These transpose the rules and criteria for risk management and for the calculation of capital and capital requirements in accordance with the European directive on the operations of banks and Basel II into the Slovenian legal system.
- With the introduction of the euro, the Bank of Slovenia will also take on the monetary policy instruments of the Eurosystem and the system for insuring claims as set out in the ECB guideline on Eurosystem monetary policy instruments and procedures, and the general documentation on instruments and procedures, which is an annex to the aforementioned guideline. The Governing Board today passed a regulation on the general rules for implementing monetary policy, thus implementing the general documentation in Slovenia. The regulation will enter into force on 1 January 2007, and pursuant to this banks and savings banks will have access to the monetary policy instruments of the Eurosystem.