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Press Release

10.12.08

Government discusses the intention to withdraw SAF troops from NATO Training Mission Iraq (NTM-1)

The Government discussed the intention to withdraw the Slovenian Armed Forces troops from the NATO Training Mission Iraq (NTM-1), decided to appoint a working group charged with producing acceptable solutions regarding the future use of the Falcon 2000 EX aircraft, and approved a draft Decree on Criteria and Conditions for Issuing Loans under Article 81.a of the Public Finance Act.

Defence Minister Ljubica Jelusic and Primer Minister Borut Pahor address the press after the weekly cabinet session.

 

 

At today's session, the Government of the Republic of Slovenia discussed the intention to withdraw the Slovenian Armed Forces troops from the NATO Training Mission Iraq (NTM-1) by 31 December 2008. The Government will communicate its intention to the Committees on Defence and Foreign Policy of the National Assembly.

 

At today's session the Government approved the draft Decree on Criteria and Conditions for Issuing Loans under Article 81.a of the Public Finance Act, which is based on Paragraph 1 of article 88.a of the Act on issuing loans under Article 81.a. The Decree defines in greater detail the loan-issuing procedure and other conditions and criteria.

The Decree defines procedures and criteria for the approval of loans within the framework of measures to minimise the effects of the financial crisis. Potential beneficiaries will apply to SID – Slovene Export and Development Bank Inc., Ljubljana. Credit institutions, insurance companies, reinsurance companies and pension companies are eligible to apply. The Government will decide whether to approve a loan on the basis on the opinion of a supervisory institution (the Bank of Slovenia and Insurance Supervision Company). Loan maturity depends on the maturity of the Government's resources. The cost/interest rate is based on the cost of the loan issued with government guarantee, and is defined in accordance with ECB recommendations.

The Decree was drawn up in cooperation with the Bank of Slovenia and coordinated with the Insurance Supervision Company. In accordance with EU legislation, the text of the Decree must be referred for review to the European Central Bank and the European Commission.

 

At today's session, the Government appointed a working group charged with producing acceptable solutions regarding the future use of the Falcon 2000 EX aircraft after the expiry of the lease contract. The group is headed by the State Secretary at the Ministry of Defence. The group is required to draw up in a fortnight a report on the potential future use of the Falcon 2000 EX aircraft, and propose to the Government decisions based on economically viable solutions.

 

At today's session the Government issued a statement that it does not object to a global loan to UniCredit Leasing d.o.o issued by the European Investment Bank for financing the investments of SMEs, infrastructure projects of municipalities and industrial projects in energy, environment and innovations amounting to under €60 million by leasing.

In October 2008 the EIB sent a letter informing the Government that UniCredit Leasing d.o.o. had asked for a global loan amounting to €60 million to finance the investments described above, regardless of the scope of the project. The global loan will be secured by guarantees from commercial banks, or some other guarantee acceptable to the bank.

 

Due to the position and financial standing of the bank, the EIB's loans are among the most favourable in the market. The bank will ensure in the contract that part of the financial benefits will be transferred to the end recipients.

 

At today's session, the Government finalised the text of a draft Act ratifying the Stabilisation and Association Agreement between the European Communities and their Member States on the one hand and Bosnia and Herzegovina on the other by a Final Act.

 

The main elements of the Stabilisation and Association Agreement are: commitment on the part of the EU to engage in dialogue with Bosnia and Herzegovina; provisions on closer regional cooperation, including provisions on free trade between the countries in the region; the possibility of establishing a free trade zone between the Communities and Bosnia and Herzegovina in five years from the date the agreement comes into effect; provisions on the flow of labour, the right of establishment, provision of services, current payments and capital flow; the commitment of Bosnia and Herzegovina to harmonise its legislation with that of the EC, particularly in key areas pertaining to the internal market; and provisions on the collaboration with Bosnia and Herzegovina in a number of areas, including the administration of justice, freedom and security.

 

Relations with Bosnia and Herzegovina are particularly important to the Republic of Slovenia for political, business, economic and other reasons. The ratification of the Agreement on the part of Slovenia will strengthen the excellent relations between the two countries and reaffirm Slovenia's efforts to provide Bosnia and Herzegovina with all the support needed to join the EU.