Identifier
Created
Classification
Origin
09LJUBLJANA78
2009-03-20 16:33:00
CONFIDENTIAL
Embassy Ljubljana
Cable title:
SLOVENIA: ADDRESS FINANCIAL CRISIS IN CEE ON
how-toVZCZCXRO5682 PP RUEHAG RUEHROV RUEHSR DE RUEHLJ #0078 0791633 ZNY CCCCC ZZH P 201633Z MAR 09 FM AMEMBASSY LJUBLJANA TO RUEHC/SECSTATE WASHDC PRIORITY 7226 INFO RUCNMEM/EU MEMBER STATES
C O N F I D E N T I A L LJUBLJANA 000078
SIPDIS
E.O. 12958: DECL: 03/20/2019
TAGS: ECIN ECON EFIN EUN PREL SI
SUBJECT: SLOVENIA: ADDRESS FINANCIAL CRISIS IN CEE ON
CASE-BY-CASE BASIS
REF: A. STATE 23758
B. LJUBLJANA 68
C. LJUBLJANA 60
C O N F I D E N T I A L LJUBLJANA 000078
SIPDIS
E.O. 12958: DECL: 03/20/2019
TAGS: ECIN ECON EFIN EUN PREL SI
SUBJECT: SLOVENIA: ADDRESS FINANCIAL CRISIS IN CEE ON
CASE-BY-CASE BASIS
REF: A. STATE 23758
B. LJUBLJANA 68
C. LJUBLJANA 60
1. (C) Emboffs met with Ministry of Finance officials Katja
Bozic, Director General of Financial Systems, and Andrej
Kavcic, Head of the International Finance Department, to
discuss Slovenia's views on the Global Financial Crisis. Per
reftel A, emboffs urged European leadership and proactive
flexible approaches to address the financial turmoil in some
Central and Eastern European countries. In reply to emboffs'
suggestion regarding EU expansion of assistance beyond the 25
billion euro Balance of Payments facility, Bozic said that
Slovenia would support doubling the bailout fund to 50
billion. She noted, however, that Slovenia will follow the
EU approach of dealing with each country on a case by case
basis. Slovenia is also strongly in favor of keeping the
two-year trial period for Eurozone aspirants. Bozic said
that from its own experience, Slovenia maintains the position
that two years is an appropriate amount of time to prove
stability and resiliency. Reflecting Slovenia's desire to
avoid divisions within the EU, Bozic also stated that it is
important that for the purposes of IMF solutions, Europe not
be referred to as "East or West" but as "problem or
non-problem countries."
2. (C) In addition to the demarche, Bozic and Kavcic also
discussed the general state of the Slovenian economy. As the
Minister of Economy (ref B) and the Minister of Finance (ref
C) did, they expressed satisfaction and relief that Slovenia
still has a robust economy relative to many of its neighbors.
They credited Slovenia's "conservative" banking system and
being a member of the eurozone as the primary factors. While
they acknowledged that exports, capital markets and real
estate are all down due to the global crisis, they stated
that the relative strength of Slovenia's financial sector is
keeping the economy strong. Bozic even mentioned with pride
that while other countries are facing a "credit crunch",
credit activity in Slovenia grew 18% from January 2007 to
January 2008.
FREDEN
SIPDIS
E.O. 12958: DECL: 03/20/2019
TAGS: ECIN ECON EFIN EUN PREL SI
SUBJECT: SLOVENIA: ADDRESS FINANCIAL CRISIS IN CEE ON
CASE-BY-CASE BASIS
REF: A. STATE 23758
B. LJUBLJANA 68
C. LJUBLJANA 60
1. (C) Emboffs met with Ministry of Finance officials Katja
Bozic, Director General of Financial Systems, and Andrej
Kavcic, Head of the International Finance Department, to
discuss Slovenia's views on the Global Financial Crisis. Per
reftel A, emboffs urged European leadership and proactive
flexible approaches to address the financial turmoil in some
Central and Eastern European countries. In reply to emboffs'
suggestion regarding EU expansion of assistance beyond the 25
billion euro Balance of Payments facility, Bozic said that
Slovenia would support doubling the bailout fund to 50
billion. She noted, however, that Slovenia will follow the
EU approach of dealing with each country on a case by case
basis. Slovenia is also strongly in favor of keeping the
two-year trial period for Eurozone aspirants. Bozic said
that from its own experience, Slovenia maintains the position
that two years is an appropriate amount of time to prove
stability and resiliency. Reflecting Slovenia's desire to
avoid divisions within the EU, Bozic also stated that it is
important that for the purposes of IMF solutions, Europe not
be referred to as "East or West" but as "problem or
non-problem countries."
2. (C) In addition to the demarche, Bozic and Kavcic also
discussed the general state of the Slovenian economy. As the
Minister of Economy (ref B) and the Minister of Finance (ref
C) did, they expressed satisfaction and relief that Slovenia
still has a robust economy relative to many of its neighbors.
They credited Slovenia's "conservative" banking system and
being a member of the eurozone as the primary factors. While
they acknowledged that exports, capital markets and real
estate are all down due to the global crisis, they stated
that the relative strength of Slovenia's financial sector is
keeping the economy strong. Bozic even mentioned with pride
that while other countries are facing a "credit crunch",
credit activity in Slovenia grew 18% from January 2007 to
January 2008.
FREDEN