## Statement by First Deputy Managing Director David Lipton on Slovenia

_IMF News, October 9, 2016_

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## Bibliographic details
- Published: October 9, 2016

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### Context and metadata
- Press Release No. 16/454
- Date: October 9, 2016
- Speaker: Mr. David Lipton, First Deputy Managing Director of the International Monetary Fund (IMF)
- Meeting: Met with Bank of Slovenia Governor Bostjan Jazbec on the sidelines of the IMF-World Bank Annual Meetings in Washington, DC.

### IMF assessment of Slovenia’s economy
- “Our current assessment is that, while growth has returned, Slovenia could grow faster and more sustainably with further reforms.”
- Swift policy actions, including in the financial sector, are needed to:
  - stimulate private investment
  - reduce vulnerabilities

### Financial sector actions and historical recapitalization
- Commendation: Bank of Slovenia and the Ministry of Finance led the 2013 bank diagnostic exercise and subsequent recapitalization.
  - These steps “played a critical role in bringing the country back from the brink of a crisis.”
  - The recapitalization and diagnostic work “restored confidence in the financial system and set the conditions for a sustained economic recovery.”
- Policy recommendation:
  - Continue efforts that supported the 2013 recovery

### Privatization of recapitalized banks
- Recommendation:
  - Privatization of the recapitalized banks will:
    - foster their development
    - allow partial recouping of the public funds

### Non Performing Loans (NPLs) and SMEs
- Urgent policy priority:
  - “It is also time to decisively deal with bank Non Performing Loans (NPLs), especially to small and medium enterprises (SMEs).”
- Specific recommendation:
  - Implement swiftly the guidelines for resolution of NPLs to SMEs prepared by:
    - the Bank of Slovenia
    - the Bank Association
  - Expected effects of swift implementation:
    - facilitate resumption of bank lending
    - contribute to raising investment
    - support economic growth
    - increase employment

### Central bank independence
- Discussion point:
  - Principles of central bank independence and non-interference with the central bank’s execution of its duties
- IMF stance:
  - The IMF “strongly supports” central bank independence
  - Respect for these principles is “important to ensure continued confidence in the economy”

*Statement by First Deputy Managing Director David Lipton on Slovenia, Press Release No. 16/454, October 9, 2016.*

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## References

- [David Lipton](http://www.imf.org/external/np/omd/bios/dl.htm)
- [Republic of Slovenia and the IMF](http://www.imf.org/external/country/SVN/index.htm)
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- [PRESS CENTER](http://presscenter.imf.org/)
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_Source: https://www.imf.org/en/news/articles/2016/10/09/pr16454-slovenia-statement-by-first-deputy-managing-director-david-lipton_