Decisions adopted by the Governing Board on the occasion of its 259th regular meeting on 10 December 2002

Decisions adopted by the Governing Board on the occasion of its 259th regular meeting:

Following the recent reduction of the main refinancing interest rate by the European Central Bank, the main refinancing rate of the Bank of Slovenia was reduced from 7.75% to 7.25%. The Governing Board adopted the decision on reduction of interest rates for Tolar instruments as follows: lombard loan from 11% to 10.5%, foreign exchange bills under repurchase agreement from 9.5% to 9%, 60-day bills from 8.75 to 8.25% and 270-day bills from 10% to 9.5%. In line with the reduction of interest rate for 270-day bills, the interest rate for 360-day bills will also be reduced.

The new interest rates become effective as of 12 December 2002, with the exception of 360-day bills for which the new rate becomes effective on 13 december 2002.

The Bank of Slovenia will make the 360-day bills available to banks for the last time on 31 December 2002. Banks will be able to subscribe the bills until including 13 January 2003. The instrument was originally introduced and made available to banks with the purpose to sterilize the surplus in foreign exchange inflow due to Novartis/Lek transaction.