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Slovenia needs new investment cycle for financial stability - governor
July 17, 2014 / 12:35 PM / 3 years ago

Slovenia needs new investment cycle for financial stability - governor

LJUBLJANA, July 17 (Reuters) - Slovenia will have to embark on a new investment cycle in the coming year and restructure over-indebted companies to ensure long-term financial stability, Bank of Slovenia Governor Bostjan Jazbec said on Thursday.

The euro zone member narrowly avoided an international bailout last year by pumping in 3.3 billion euros into its banks to save them from collapsing under bad loans.

It expects to get a new centre-left government in September after a new party, SMC, headed by political novice and legal expert Miro Cerar, won a snap general election on Sunday.

“Outside (financial) help is always a possibility ... but I see no need for it at this moment,” Jazbec, who is also a member of the European Central Bank governing council, told a news conference. “We can avoid it if we prepare a strategy that will enable new investments in the coming months or at least until the end of 2015.”

Cerar, a 50-year-old legal expert who entered politics just six weeks ago, is expected to start coalition talks next week.

He told Reuters on Sunday Slovenia would meet deficit targets agreed with the European Union but would seek “our own ways” to get there. His cabinet, he said, would review which state companies would be sold.

The outgoing government last year put 15 companies up for sale, including the number two bank NKBM and the main telecom operator Telekom Slovenia. (Reporting By Marja Novak; Editing by Zoran Radosavljevic and Larry King)

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