Press release from the meeting of the Governing Board of the Bank of Slovenia of 2 September 2008

1. At today's meeting, the Governing Board of the Bank of Slovenia was briefed on current economic and financial developments, and determined that the majority of economic activity and price development indicators in Slovenia point to a slowdown. A slowdown in economic activity could contribute to the continued gradual slowing of core inflation over the next medium-term period. Growth in nominal labour costs continues to represent the greatest risk with regard to the level of core inflation. 

2. The Governing Board of the Bank of Slovenia was briefed on current banking operations and developments on capital markets. The slowdown in lending to non-banking sectors continued in July. Foreign currency lending is slowing more rapidly than domestic currency lending. 

3. The Governing Board of the Bank of Slovenia issued Deželna banka Slovenije d.d. an authorisation for derivatives trading.