The Decisions adopted by the Governing Board on the occasion of its 303rd regular meeting on 13 January 2005

Decisions adopted by the Governing Board on the occasion of its 303rd regular meeting:

1. In its today´s session, the Governing Board of the Bank of Slovenia inter alia discussed economic and monetary movements. After an increase in the inflation rate in November, a tendency towards disinflation continued in December. The sustainability of the disinflation process continues to show a gradual slow down of core inflation to a level of around 2.5 per cent. According to the macro-economic projections of the Bank of Slovenia, the process of decreasing inflation will gradually continue, so that Slovenia should meet the convergence criterium in the middle of the next year. Along with falling inflation, other macro-economic equilibria are also kept to a great extent. The growth of lending has become slightly sluggish in recent months, although continuing to stay at a high level, notwithstanding the growth of broad monetary aggregates, remaining low because of balance-of-payments´ outflows. Instances of a high growth of lending are mainly a consequence of a stronger economic growth and low interest rates. The share of lending in foreign currency has been gradually decreasing, simultaneously remaining a significant form of banks´ lending, primarily company-oriented, however. At the end of December, the Bank of Slovenia increased the price of a buy/sell FX swap by 0.25 percentage points and reduced the interest rate of a repurchase agreement on securities. It was an issue of a structural adjustment of the interest rates of monetary policy instruments, used by the Bank of Slovenia to ensure further stability in the money market.
   
2. In its today´s session, the Governing Board of the Bank of Slovenia was also acquainted with the report on handling the complaints of banks´ clients in the previous year. These also address their complaints to the Bank of Slovenia, although this Bank has no statutory powers for intervention in the civil law relations between a bank and a customer and although the out-of-court settlement of disputes of this kind was introduced with the Bank Association of Slovenia at the beginning of the previous year. After receiving a complaint, the Bank of Slovenia acquaints clients in writing with the out-of-court manner of settling disputes with the Settlement Council of the Bank Association of Slovenia, and with the fact that it has no statutory powers for intervention in the civil law relations between a bank and a customer. In addition, a bank is called upon in writing to thoroughly identify contingent deficiencies, irregularities or incorrectness in that part of operation to which a complaint is referred to within a time limit required. Most complaints with reference the execution of payment transactions, because of the calculation of interest income arising from loans and deposits, a refund of cost with reference to an out-of-court settlement, too high rates of services, monolateral modifications of the interest rates applying to deposits, use of insurance instruments, giving false information on the services of a bank. The Bank of Slovenia received 56 complaints from natural persons and 15 complaints from legal ones in the previous year.
   
3. The Governing Board of the Bank of Slovenia also modified the Decision on the Narrowest Liquidity Band a Bank Must Provide by way of extending the set of securities for meeting the provisions of the Decision. Enhanced liquidity in the capital market allows domestic serial debt securities with a suitable credit ranking to be classified into the first and second maturity bands of the maturity ladder without prejudice to the principle of the residual maturity. Apart from that, the modification of the Decision stipulates an exemption in case of refinancing long-term foreign exchange loans, causing a premature repayment of the old one, which will enable banks to retain the liabilities arising from the old foreign exchange loan in the third band of the foreign exchange portion until a premature repayment, thus without increasing the base for the calculation of foreign exchange minimum requirements.
   
4. The Governing Board of the Bank of Slovenia licensed Mr. Rado Likar and Ms. Liljana Furlan to perform the office of a member of the Management Board of the »HKS Vipava p.o.« savings-and-loan undertaking.