NEWS

Prime Minister Borut Pahor at the continuation of the National Assembly’s 20th regular session: »Slovenia needs a good and efficient bank.«

The Prime Minister of the Republic of Slovenia today attended the continuation of the 20th regular session of the National Assembly of the Republic of Slovenia, at which the Prime Minister’s response to the question raised by Deputy Mag. Radovan Žerjav concerning the sale of state property was discussed. Prime Minister Pahor in his answer to the Deputy’s question reiterated: “The Government adopted one of the important measures by setting up professional foundations for corporate governance. On this basis and on the basis of the adopted corresponding Act, a new strategy for governing state equity investments in a transparent and efficient manner will be prepared. In this way, the state will ensure a higher degree of due diligence and care in managing these investments.”

    

Prime Minister Pahor went on to underline the importance, when such a decision is involved, of the state’s withdrawal in a fully transparent and clear manner; however, should the state decide to remain involved, it should act with due diligence and care. “I am convinced that together we will be able to define investments of strategic importance, as well as those whose disposal will be more beneficial to the state. One of the criteria for assessing long-term ownership interest of the state is certainly the profitability of investments. It is my position that all investments cannot be strategic and that we cannot keep on borrowing and burdening the future generations with debts for maintaining the level of investments without having studied thoroughly and in a professional manner the benefits for the state.”

   

Slovenia as a small and open economy does not have sufficient own financial resources for its development. Elaborating on this issue, Prime Minister Pahor also said that it would not be economically reasonable for the state to insist on pursuing its development solely in proportion to its own financial resources: “We are part of the modern world and this world offers a number of measures and methods that facilitate the financing of one's own development." Prime Minister Pahor reassured the audience by emphasising that the Government had not yet adopted any strategy, decision or resolution on selling any property that would exceed the framework of the programme for disposal of state property during the period of the adopted budgets. Moreover, owing to the situation on the financial market in 2010, no sale of state investments has been realised.

   

With respect to the state’s interest in Nova Ljubljanska banka, the Prime Minister again presented the proposal that coincides with the state’s strategic policy on investments: to assess whether and why the state has a long-term strategic and ownership interest in Nova Ljubljanska banka or whether the nature of this financial institution is such that it could be given a new impetus by inviting a third party or other strategic partners to participate by developing new banking and financial products. “We probably all agree", continued Prime Minister Pahor, “that by adopting the Equity Investment Governance Act, we have opened a new chapter on rational reasoning of the state regarding its investments, and have decided to make efforts at regulating the state’s property and investments by taking reasonable decisions.” The question of ownership of the bank and measures to make it financially sound and efficient arises, added Mr Pahor and also noted: “When we have answered the question how to make this bank financially sound and efficient, we will also have to answer the question what kind of ownership structure is required in order to make this bank financially sound and efficient. It is not necessary, however, that the state should remain the majority owner of this bank. I feel that Slovenia needs a good and efficient bank and that the question of its ownership structure should come second to this ambition. If we judge it important for the state to be and to remain the bank’s majority owner, then the National Assembly will adopt such a decision and I will not oppose it. However, I personally allow the possibility of capital increase through the entry of a new strategic partner in the future in order to ensure financial stability and efficiency of Nova ljubljanska banka, provided, however, that the state maintains 25% equity in order to preserve its predominant management control.”