Ljubljana – At today's session, the Government of the Republic of Slovenia adopted the draft amendments to the Banking Act. These are essential, due to the preparation for raising additional capital for the banks, as the amended Act aims to ensure capital adequacy in the banking system, which is essential for the country’s credit rating.

The aggravated economic and financial situation has revealed that banks’ capital adequacy is insufficient on the European and global scales. Therefore, the European Banking Authority (EBA) has called for a core tier 1 capital (generally share capital) ratio of at least nine per cent in major banks. As the financial strength of bank owners has significantly decreased and, consequently, raising additional capital is more difficult, regulators around the world recommend issuing contingent convertible bonds as an alternative method for raising capital. These financial instruments are considered by regulators (including the EBA) as the highest-quality form of core-tier 1 capital. Issuing Co Co bonds is linked to the instrument of conditionally authorised or increased capital, which is to enable bank management to quickly respond to the bank’s aggravated capital situation. In this respect, the amendments to the legislation are necessary, as in the situation where raising capital is difficult, Co Co bonds enable capital adequacy to be reached quickly and effectively, ensuring financial stability.
The main solutions introduced by the amended act include:
• Increasing core capital with in-kind assets in the form of creditors’ claims or other forms of assets in cases of the financial re-structuring of banks;
• Dropping general restrictions regarding how much core capital is to be increased in cases of conditional increases of capital, or authorising management to increase capital on the basis of authorised capital;
• Defining special rules on acquiring bank shares and compulsory takeover bids;
• Determining additional exceptions for acquirers of shares which were acquired in the procedure of increasing the bank’s core capital.

More information: Ministry of Finance, Public Relations, Ms Irena Ferkulj (irena.ferkulj[@]mf-rs.si , +386 1 369 6624 )

2012–2016 tourism strategy: green, active, healthy Slovenia

Ljubljana – At today’s session, the Government approved the tourism strategy for the 2012–2016 period, in which Slovenia as a tourist destination is promoted with the slogan ‘Green, active, healthy Slovenia’, as pristine nature is Slovenia’s biggest competitive asset.

Tourism is a major business sector in Slovenia, which will contribute to creating environmental, economic, social and cultural welfare in the future, generate income and help create jobs, while enhancing Slovenia’s international reputation.
The goals of Slovenian tourism in the period between 2012 and 2016 is to increase tourist-related activities (turnover: income and profit from hospitality and tourism industries, the number of tourists, the number of overnight stays) as follows:
- the number of overnight stays: 2% (annual growth),
- the number of tourists: 4% (annual growth),
- income from travel exports: 6-8% (annual growth).

Therefore, Slovenia will consistently apply the principles of sustainable development of tourism and seek to achieve a higher quality of tourist services.

On the basis of the guidelines adopted in the previous strategic period, the following principle areas of tourist offer will also be stressed in 2012–2016:
- health and well-being (spas, health resorts, medical tourism),
- active holidays and stay (activities for the winter and summer),
- tourism in the countryside, natural parks, ecotourism,
- business tourism,
- gastronomy,
- cities and culture,
- youth tourism,
- casinos tourism,
- cruises.

More information: Ministry of the Economy and Development, Ms Stanka Ritonja, Public Relations, (+386 1 400 35 05, stanka.ritonja[@]gov.si).