Čufer, who attended in Washington the spring meetings of the IMF and the World Bank, noted that Slovenian households were among the least-indebted in Europe, while government debt is also below EU average.
Thus he argued that there was enough absorption capacity for the imbalances in the business sector which are reflected in banks' balance sheets.
Measures to restore growth are already being adopted and include the bad bank, whose launch is expected before the end of June.
While explaining the government would focus on boosting growth and fiscal consolidation, he pointed to the recently adopted pension and labour market reforms.
Given that Slovenia is a small and export-oriented economy, costs will have to be cut both in the private and public sector, the minister said, but added that this will not be enough and that about a third of the measures also involve new revenue. He said the government wished to distribute the burden among the population more fairly.
Čufer could not yet give any names of companies that could be privatised, but revealed that a debate by the government on 9 May would involve a package of companies, not necessarily only two, with which the privatisation will begin.
He added that slightly under EUR 1bn would be used for recapitalising banks and that the process would probably be concluded before the end of the year.
Čufer stressed that Slovenia would not withdraw from financial markets. The government is planning a new bond issue and sees no problem in waiting if investors do not show interest immediately, the minister told the relatively poorly attended press conference, possibly an indication that the pressure on Slovenia is letting up somewhat.
Source: SloveniaTimes
