Press release regarding resolutions in the scope of the implementation of privatisation measures in the area of finance, adopted by the Government of the Republic of Slovenia at its 23rd session of 23 April 2009

1. The Bank of Slovenia would like to emphasise that the Republic of Slovenia is an important, but not the only, owner of NLB and NKBM. Its participating interests in NLB and NKBM are 50.02% and 51.70% respectively. The Bank of Slovenia's Regulation on the Diligence of Members of Management Boards and Supervisory Boards of Banks and Savings Banks requires that members of the supervisory board first consider the objectives of the bank as a whole, and subordinate "any personal interests or the specific interests of shareholders, the management board, the public or other persons to those of the bank." 

2. The Bank of Slovenia's Regulation on the Diligence of Members of Management Boards and Supervisory Boards of Banks and Savings Banks requires that members of the management board and supervisory board strive for the independent adoption of decisions "in all circumstances" and, on this basis, assess any opinions or instructions of those who have been "elected, proposed or appointed" by members of either board. 

3. On the basis of a review of the Government's measures, the Bank of Slovenia has determined that audits of lending involved in the most exposed management buyouts are carried out at banks under indirect or direct majority ownership of the state. Only on the basis of these audits "will all the facts be determined", based on which it will be possible to draw precise conclusions with regard to alleged violations of the rules set out in the Bank of Slovenia's regulation by the management boards and supervisory boards of these banks, and with regard to their responsibilities. 

4. The Bank of Slovenia understands the Government's efforts to precisely define the rules on the implementation of the measures it adopted to mitigate the effects of the global financial turmoil and economic crisis that we are experiencing. In this regard the Bank of Slovenia's aim of precisely defining the rules is to improve the effectiveness of state assistance, which has not been fully realised to date. The Bank of Slovenia believes that improving effectiveness is also the intention of the Government of the Republic of Slovenia in supplementing measures, and supports the Government to this end. 

5. The Bank of Slovenia has continuously and prudently monitored the financing of acquisition activities that are supported by bank-approved loans. In this regard it assesses during the examinations of individual banks the risks that derive from the conduct of banks that approve loans, as well as the risks from the external macroeconomic environment that affect banks. The Bank of Slovenia informs the management boards and supervisory boards with regard to its findings, and requires them to maintain the risks that arise in operations at a manageable level through the implementation of the Bank of Slovenia's recommendations.