Decisions adopted by the Governing Board on the occasion of its 276th regular meeting on 2 October 2003

Important matters dealt with and decisions taken by the Bank of Slovenia Governing Board on its 276th regular meeting:

1. The Board assessed the current economic and monetary developments, and stated that the coordinated policy approach of the Bank of Slovenia and the Slovenian Government has accelerated the decrease of inflationary expectations, and resulted in a lower inflation. The September figures show that not only has the headline inflation dropped to 5,0% on annual basis, but also the core inflation which reflects the demand pressures on prices, strongly decreased. It reached 4,1% in September. The Board agreed that this allows for a reduction of interest rates by 25 basis points, as follows: 
   
   lombard loan: from 8.25% to 8.00% 
   repurchase facility for bills denominated in foreign currency: from 7.25% to 7.00% 
   60-day Tolar bills: from 6.50% to 6.25% 
   270-day Tolar bills: from 7.50% to 7.25% 
   
   The Board took into account the need to keep interest rates on the appropriate level for the current economic situation. The new interest rates will take effect from 3 October 2003.
   
2. In order to sterilize the liquidity stemming from Bank of Slovenia bills at their maturity (issued in the period of high FDI induced capital in flows in the last months of 2002), the Board took the decision to submit to banks a special offer for 270-day Bank of Slovenia bills. The bills will be offered through an open tender with the interest rate equal to the latest maximum bid rate of regular 270-day bills auction. The Bank of Slovenia will issue five series. Only banks signatories of the agreement to cooperate in the foreign exchange market, which have maintained minimum amounts of swaps in the period of last three months, will have the right to subscribe.
   
3. The Board took note of the Bank of Slovenia EU and Eurosystem Accession Action Plan. The action plan fully reflects the ECB Accession Countries Master Plan. It defines and determines the activities to be taken, activity managers, as well as the timeframe and deadlines for completion of individual activities. A specialcoordination body on the bank management level monitors the implementation on a bi-weekly basis.
   
4. The Board adopted the Decision on putting the reprint of SIT 10,000 banknote into circulation as of 13 October 2003. Its main characteristics: Date of issue - 15 January 2003, signature of the Governor Mitja Gaspari, additional iridescent security feature on the back with the inscription "SIT".