BANK OF SLOVENIA EUROSYSTEM MONTHLY BULLETIN. October 2010 Vol 19 No. 10

Transcription

1 MONTHLY BULLETIN October 2010 Vol 19 No. 10

2 BANKA SLOVENIJE Published by: BANKA SLOVENIJE Slovenska 35, 1000 Ljubljana Slovenija tel.: +386 (1) fax.: +386 (1) SWIFT: BSLJ SI 2X Editorial Board: Mr. Janez FABIJAN, Vice Governor Mr. Matjaž NOČ, Financial Statistics Mr. Damjan KOZAMERNIK, Analysis and Research Mr. Tomaž KOŠAK, Financial Stability Mr. Ernest ERMENC, Accounting Mr. Neven BORAK, Advisor to the Governor Mrs. Danica PRELOVŠEK, Advisor to the Governor Mr. Franc DRENOVEC, Advisor to the Governor Printed by: Tiskarna Radovljica d.o.o. Publication and other public use of data from this publication is permitted subject to statement of the source. Publication is available on the Web. ISSN (print) ISSN X (online) Ta publikacija je na voljo tudi v slovenščini. 2 Monthly Bulletin, October 2010

3 BANKA SLOVENIJE Important information Monthly Bulletin of Bank of Slovenia has been, from the number 2-3 for February-March 2007, volume 16, partly changed in its content and form. The preannouncement of the change has been published on the web page of the Bank of Slovenia in January The main changes are as follows: The beginning of publishing the statistical data of value, which refer to the period after the entry to the euro area, in the official domestic currency - euro. The data of value for the previous period will continue to be published in tolars, as the official Slovenian currency in that period. The data in euros are in the tables separated from the data in tolars by line. The change in the concept of the international monetary reserves because of the entry to the Economic and monetary union. Among the Slovenian international monetary reserves after the entry to the euro area, compared to the period before, there are no longer assets in euro as well as the claims on the euro area residents. More explanation is available in: The statistical treatment of the international monetary reserves at the entry of Slovenia to the euro area (slovenian), in the chapter Methodological information on the internet page: The change in the presentation of the currency in the circulation to the standards of the euro area. The accommodation of the balance sheet of Bank of Slovenia to its activities in the framework of the Eurosystem. The beginning of the publishing of the interest rates of the euro area money market as well as the publishing of the whole set of the interest rates of the Monetary financial institutions according to the ECB s methodology. The beginning of the publishing of the financial accounts statistics in the new chapter. Colour separation of the individual statistical chapters, to alleviate search and because of the link of the chapters to the specialised publications. More information can be found in Methodological Notes in the Bank of Slovenia monthly Bulletin. The entry to the euro area (on ) caused a break in the time series of the statistical tables in the Monthly bulletin in cases where the currency is an attribute. An expected reclassification takes place, for example of the stock of outstanding loans in euros from the time series of foreign currency before the introduction to the time series of domestic currency after the introduction of euro. To enable easier reconstruction of this change, the shares of the Euro amounts in stocks of the foreign currency in the tables 1.3, 1.4, 1.5 and 1.6 on , and are published in the chapter Methodological notes. Monthly Bulletin, October

4 BANKA SLOVENIJE 4 Monthly Bulletin, October 2010

5 BANKA SLOVENIJE TABLE OF CONTENTS REPUBLIC OF SLOVENIA: General Information I. ECONOMIC AND FINANCIAL DEVELOPMENTS 1. International Environment 2. Economic Activity and Labour Market 3. Price Developments 4. Balance of Payments 5. Public Finance 6. Banking System 7. Domestic Financial Markets II. STATISTICAL TABLES Money and Financial Institutions Financial Markets and Payment Systems Balance of Payments and External Position Public Finance Financial Accounts Non-Financial Accounts and General Economic Statistics III. BANKING INSTITUTIONS IN SLOVENIA VI. NOTES ON METHODOLOGY Review of the links Advance release calendar Legend: * / 0 1,2,3,... n.a. no occurence not available provisional or estimated corrected data average value less than 0.5 footnote, explained in Notes Methology not applicable Sums of part figures may differ from totals due to roundings. The data in euros and the data in tolars are separated with line. Monthly Bulletin, October

6 BANKA SLOVENIJE REPUBLIC OF SLOVENIA: GENERAL INFORMATION Measured in: Date or period of data: Area 20,273 km Population 2,046,976 number Population growth 0.14 % Population density number / km Population of City Community Ljubljana 279,653 number Origin of value added: 2009 Agriculture 2.1 % Industry 23.8 % Construction 7.6 % Services 66.5 % % GDP real annual change -8.1 % 2009 Industrial production annual change 11.5 % August, 2010 employment annual change -2.3 % August, 2010 Unemployment rate (ILO definition) 7.1 % Apr. - Jun., 2010 Annual inflation rate 1.9 % October, 2010 General government: revenue 44.4 % BDP 2009 surplus/deficit -5.5 % BDP 2009 Trade balance mio EUR August, 2010 BOP current account 4.7 mio EUR August, 2010 International reserves mio EUR Foreign exchange reserves mio EUR Net foreign debt 11,182 mio EUR Gross foreign debt 41,616 mio EUR Currency unit since January 2007: Euro (EUR) 1EUR = SIT 6 Monthly Bulletin, October 2010

7 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE I. ECONOMIC AND FINANCIAL DEVELOPMENTS I. ECONOMIC AND FINANCIAL DEVELOPMENTS 1. International Environment 2. Economic Activity and Labour Market 3. Price Developments 4. Balance of Payments 5. Public Finance 6. Banking System 7. Domestic Financial Markets Monthly Bulletin, October I.

8 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS I.-2 Monthly Bulletin, October 2010

9 Current developments in the euro area and the advance estimate of the third quarter US GDP data indicate a continuation of moderate economic growth. The month-on-month growth of industrial production in the euro area has declined slightly in recent months, while the volume of retail trade has stagnated. According to the advance estimates, GDP in the US in the third quarter was up 0.5% in quarter-on-quarter terms, slightly more than in the second quarter, largely as a result of increased growth in private consumption. Despite an upward revision, the IMF s October forecasts for economic growth in the euro area remain low at 1.7% for this year and 1.5% for the next year. The economic growth in the US is projected at 2.6% for this year, and 2.3% for the next year. Given the financial markets expectations of additional quantitative easing by the Federal Reserve, the US dollar is continuing to fall, which is leading to the growth in US dollar prices of oil and gold. Certain indicators in the domestic economy indicate a slowdown in growth in the third quarter. After declining in July, industrial production rose sharply in August compared with July, although new orders fell for the second consecutive month. The monthly confidence indicators show renewed growth in early autumn. According to provisional figures, volume turnover in retail trade stagnated in the third quarter compared with the second quarter, while growth in volume turnover from the trade and repair of motor vehicles and motorcycles slowed sharply. Despite recording month-on-month growth, activity in the construction sector remained low; growth was also limited by the adverse financial situation of construction companies. The number of the unemployed fell below 98,000 in September, although it is expected to rise again in the following months as a result of some recent large corporate bankruptcies and the usual autumn season. Decline in the workforce in employment in August was slightly larger than usual during this month. The workforce in employment continues to decline in the construction sector, where the survey data for employment expectations indicate great pessimism. The average gross wage per employee rose 5.1% in year-on-year terms in August, to reach EUR 1,487. One of the factors for a relatively high wage growth was a rise in the number of work hours paid. Inflation measured by the HICP remained unchanged in October at 2.1% year-on-year. The contribution of energy prices increased, while the contributions of food prices and of non-energy industrial goods decreased. All core inflation indicators were lower than in September, in line with the adverse situation in the domestic macroeconomic environment.

10 The current account surplus was smaller in August than in the two previous months as a result of movements in merchandise trade and transfer payments. The month-on-month rate of growth in merchandise exports in August remained at its July level, while year-on-year growth exceeded 20%. Exports to EU Member States recorded more pronounced growth in the previous months, although exports to non-eu countries also increased sharply in August. The relative improvement in the terms of trade with countries outside the euro area in the second quarter was significantly larger than that with euro area countries. The general government deficit amounted to 6.3% of GDP in the 12 months to August, slightly down from the previous month, primarily as a result of extraordinary revenues from the repayment of Russia s clearing debt. Revenues are still slightly down on last year, while expenditures are up, although growth in expenditures is gradually slowing. The banking system s total assets declined by EUR 321 million in September. On the funding side, the largest declines were recorded by liabilities to the Eurosystem, as a result of maturing liabilities from LTROs, and government deposits. Banks also reduced their investments, particularly at banks in the rest of the world and in securities. Growth in lending to non-banking sectors declined as a result of modest household lending and a decline in net lending to non-financial corporations and OFIs. The banking system s pre-tax profit during the first nine months of the year was down more than a half on the same period last year at EUR 95 million. Impairments and provisioning were again the main factor in this decline in September. The market capitalisation of bonds on the Ljubljana Stock Exchange rose by 0.6% in September, while the market capitalisation of shares declined by 0.3%. The proportion of the market capitalisation of shares accounted for by non-residents stood at 9.1% in September. The SBI TOP rose by 1.5% in monthly terms, taking the year-on-year change to -21.5%. In the context of net withdrawals of EUR 1.4 million, the domestic mutual funds assets under management rose to EUR 1,947 million as a result of a 1.0% rise in the average unit price. The wording of the Economic and Financial Trends section was approved by the Governing Board of the Bank of Slovenia on 2 November 2010.

11 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE 1 l International Environment Industrial production and retail trade seasonally adjusted real indices; 2005 = 100 US retail trade euro area retail trade US industry euro area industry The current developments in the euro area and the US indicate a continuation of the moderate economic growth seen in the recent months. According to seasonally adjusted figures, the volume of retail trade and the index of construction activity in the euro area in August declined by 0.2%, while industrial production was up 1.1% month-onmonth. Retail sales in the US were up by 0.5% in September, while industrial production was down by 0.2% compared with August. An increase of private consumption was a major factor in the 0.5% quarter-on-quarter growth in GDP in the US in the third quarter, up 0.1 percentage points on the previous quarter. The unemployment rate remains high in both economies. In September it stood at 10.1% in the euro area, and 9.6% in the US. The economic sentiment indicator in the euro area rose again in October, while the consumer confidence indicator and the PMI in manufacturing in the US continued to fall in September. In October the IMF raised forecast for economic growth in 2010 for the euro area and cut forecast for the US. The IMF is forecasting economic growth of 1.7% and 1.5% in 2010 and 2011 respectively in the euro area, and 2.6% and 2.3% in 2010 and 2011 respectively in the US. Global Source: Eurostat, FED St. Louis database FRED II; Bank of Slovenia calculations economic growth is now expected to be 4.8% in 2010, up 0.2 percentage points from the April forecast. The highest growth among major economies is expected to be recorded by China (10.5%) and India (9.7%). Consensus cut economic growth forecast for this year for Eastern Europe by 0.1 percentage points to 3.9% in October, the rate also forecasted for Year-on-year inflation in the euro area stood at 1.8% in September and 1.9% in October. Inflation in the US fell for the second consecutive month in September, to 1.1%. The main factors in September s rise in inflation in the euro area were higher transport prices and higher International Environment projections for 2010 GDP y-o-y growth, % current growth, % Euro area Q2 * 1.0 Q2 * 1.7** USA Q3 * 0.5 Q3 * 2.6** Commodities, USD prices: Primary, total Oct.10 - industrial Oct.10 Food Oct.10 Oil (Brent, USD/barrel) Oct.10 Inflation Euro area Oct.10 USA Sep.10 Central banks' interest rates % at the end of period Euro area Oct.10 USA Oct.10 Sources: Bloomberg, Consensus, The Economist (Bank of Slovenia calculations for Commodities, USD prices), Eurostat, Bureau of Economic Analysis (BEA). Notes: *Seasonally adjusted data Eurostat for the euro area, BEA for the US, **IMF, October Monthly Bulletin, October I.

12 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS **seasonally adjusted, ***seasonally adjusted and long-term average = PMI above 50 means expansion of manufacturing acitivity housing prices. The largest price rises in September in the US were recorded by fuels and hospital services. Core inflation remained unchanged in the euro area at 1.0%, but fell to 0.8% in the US. Year-on-year growth in prices of manufactured goods stood at 3.6% in the euro area in August, and 4.0% in the US. Prices of oil and gold continued to rise in October. A barrel of Brent crude averaged USD in October, up 6.6% from September. October s rise in oil prices was mostly the result of the continuing fall in the US dollar. US dollar prices of commodities other than oil continued to rise in October, prices of food and cotton recording the highest month-on-month growth. The price of gold rose in October, PMI manufacturing USA** economic sentiment indicator euro area*** consumer sentiment USA economic sentiment indicator Germany*** EUR/USD exchange rate and central banks' interest rates ECB main refinancing operations (%, left) Fed Funds (%, left) EUR/USD (right) Source: ECB, Federal Reserve. Sentiment indicators Source: Eurostat, Federal Reserve Bank of St. Louis partly as a result of expectations of additional quantitative easing by the Federal Reserve. The US dollar continued to fall in October, as a result of the financial markets expectations of continuing non-standard measures by the Federal Reserve. The euro averaged USD in October, up by 6.4% from September. The euro also rose against the pound sterling, the Japanese yen and the Swiss franc in October. The key interest rates of the ECB and the Federal Reserve remain unchanged, while the Japanese central bank unexpectedly cut its key interest rate to the interval between zero and 0.10%. 2 l Real sector Economic Activity and Labour Market Industrial production rose significantlymonth-onmonth in August, while the figures available for the third quarter indicate slightly lower growth than in the second quarter. After declining in July, industrial production recorded m-o-m growth of 5.2% in August according to seasonally and working day adjusted data, similar growth was recorded in manufacturing. Year-onyear growth also increased in line with the m-om growth to 11.4%, the second-highest figure this year. Among the major branches of the manufacturing sector, year-on-year growth according to the original figures for August exceeded 20% in the manufacture of rubber and plastic products, basic metals, electrical equipment, and machinery and equipment n.e.c. Turnover in industry also rose m-o-m in August, by just under 3%, which in conjunction with last year s low basis resulted in year-on-year growth of 9.1%. Growth in industry turnover primarily remains the result of an increase in turnover on the foreign market, although turnover on the domestic market has been increasing in year-on-year terms in the last three months. The real value of new orders declined m-o-m for the second consecutive month in August, although the I.-6 Monthly Bulletin, October 2010

13 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE Volume of production and employment in industry New orders and capacity utilization in industry real indices, 2005 = 100* in 1,000 *seasonally and working days adjusted data seasonally adjusted data; *balance of answers in % persons in employment in industry, rhs industry total manufacturing activities electricity, gas, steam Source: SORS, Bank of Slovenia calculations month moving averages new orders in recent months SI* current level of capacity utilization, % SI (rhs) Source: Eurostat, quarterly survey monthly confidence indicators show renewed growth at the beginning of autumn. The quarterly survey figures for new orders indicate a quarter-on-quarter decline in demand at the end of the year, while the increase in production capacity utilisation is also expected to slow. The real value of new orders declined again in August, by around 4%. The value of new orders from domestic market recorded an increase of just over 3% compared with the previous month, the highest figure this year. The value of new orders from the non-domestic market declined by just under 7% m-o-m, the largest m-o-m fall since March Orders from the non-domestic market nevertheless remained the main factor in the year-on-year growth of 7.3% in the total value of new orders. An indication of these m-o-m movements in August also came from the survey indicators of total orders and export orders and of export expectations, which were down compared with the previous month. These indicators rose again in September, and were mostly unchanged in October. The quarterly survey figures for new orders indicate a slowdown in demand in the third quarter and a q-o-q decline in demand towards the end of the year. The slowdown in industrial production is also indicated by a slowdown in the increase in production capacity utilisation in the final quarter of this year. Capacity utilisation stands at 79%, down 5 percentage points on the average in 2008, but up 10 percentage points on the low recorded in the second quarter of last year Export orders and industrial production *y-o-y growth rates in %,**seasonaly adjusted balances new orders, foreign market, real* new orders, total, real* production expectations** expected export** export order-books** Source: SORS After four months of m-o-m decline, construction activity recorded a slight increase in August compared with the previous month, largely as a result of an expansion of civil engineering work. The value of construction put in place was up 4.6% in August compared with the previous month according to seasonally adjusted figures, which reduced the year-on-year decline by 5 percentage points from the previous month to 13.6%. Construction of dwellings recorded the highest growth at just under 24%, although this segment fluctuates sharply m-o-m, and the trend remains negative. The fluctuation in this segment is related to large differences in reported turnover by companies. The value of work performed on non-residential buildings was down just over 13% m-o-m in August, the largest decline of the Monthly Bulletin, October I.

14 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS Construction Real value of new contracts in construction seasonally adjusted real indices, 2005 = month moving averages in thousand *value of const. put in place = 100, 6-month moving averages; seasonally adjusted total residential buildings non-residential buildings civil engineering works persons in employment, rhs total construction* residential buildings* non-resid. buildings* civil engineering* Source: SORS, Bank of Slovenia calculations. Source: SORS, Bank of Slovenia calculations. year, partly as a result of the completion of the main works on a major sports and commercial complex. This is the only segment of construction that recorded a year-on-year increase during the first eight months of the year, by 0.5%. The value of civil engineering work increased by just over 10% in August as a result of work on a major tunnel and the modernisation of railway infrastructure, the highest m-o-m increase in this segment in the last two years. The value of civil engineering work during the first eight months of the year was nevertheless down in year-on-year terms by just under a fifth. This year s year-on-year increase in the contractual value of new contracts for the construction of buildings indicates a stabilisation of the situation in the construction sector, although the financial position of construction companies is continuing to deteriorate. The contractual value of new contracts for the construction of buildings during the first eight months of the year increased sharply in year-on-year terms, by a quarter for non-residential buildings and by just over a tenth for residental buildings. In the absence of any major infrastructure projects, the decline in the value of new contracts for civil engineering work during the first eight months of the year deepened to more than a quarter. Insufficient demand still prevails as a limiting factor in construction, although the proportion of companies facing insufficient demand has settled at 52% in the last Economic Activity Jan.-Aug. Jan.-Aug. Aug. Aug. annual real growth in % Industrial production * Inventories Productivity in manufacturing Construction: total ** Buildings Civil engineering Trade (turnover) retail trade Retail trade except automotive fuel Food, beverages, tobacco Non-food (except automotive fuel) Retail trade and repair of motor vehicles Sources: SORS, Eurostat, Bank of Slovenia calculations. Notes: Differences from official numbers are due to rounding. Data are unadjusted for seasonal and working days effects. * Volume of industrial production. ** Real value of construction put in place. I.-8 Monthly Bulletin, October 2010

15 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE Construction: factors limiting building activity Confidence indicators % of enterprises high financial costs insufficient demand access to bank credits points of balance, seasonally adjusted Source: SORS consumers total economy manufacturing activities retail trade services construction Source: SORS two months, down just over 10 percentage points on the beginning of the year. The proportion of companies facing high financing costs is still increasing, and surpassed 30% in September. The proportion of unsettled past-due corporate liabilities accounted for by construction companies was also high in September, at just under a third. Volume turnover in retail trade in September was up slightly compared with the previous month, while turnover in the third quarter stagnated, primarily as a result of the decline in July. Growth in volume turnover from the trade and repair of motor vehicles and motorcycles also slowed sharply in the third quarter. Volume turnover in retail trade in August was up 0.8% on Trade volume and employment in trade sector real indices, 2005 = 100* *seasonally and working days adjusted data in thousand 3-m. moving averages 100 persons in employment (G NACE Rev. 2), rhs retail trade total 90 trade and repair of motor vehicles and motorcycles retail trade with non-food, except fuel Source: SORS, Bank of Slovenia calculations July, and was up in year-on-year terms for the fourth consecutive month, primarily as a result of high year-on-year growth in volume turnover in the trade in automotive fuels. According to provisional figures, volume turnover stagnated q-o-q in the third quarter after growing by 1% in the second quarter. Volume turnover from the non-food trade (except automotive fuel) continued to decline, and also remained down in year-on-year terms. These movements continue to be related to the significant lack of consumer confidence in association with high unemployment and the low number of new hires. After recording a high rate in the second quarter, growth in volume turnover from the trade and repair of motor vehicles and motorcycles slowed in the third quarter to 0.8% compared with the previous quarter. The number of new vehicle registrations was down just over 1% on the second quarter. After stagnating in September, the economic sentiment indicator declined by 1 percentage point in October, as a result of lower confidence in services. The economic sentiment indicator thus reached its level of this May. The decline in confidence indicator in services was primarily the result of lower estimated demand and a deterioration in the business situation. There was an improvement in confidence in manufacturing, most notably in the selling price expectations indicator. The expected total demand indicator also improved. The confidence in retail trade also increased in October, partly as a result of higher estimated sales. Consumer confidence and confidence in construc- Monthly Bulletin, October I.

16 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS Registered unemployment Advertised and filled job vacancies, new registered unemployed in % y-o-y change (right axis) registered unemployment rate y-o-y growth rates in % job vacancies (3-m moving average) filled vacancies (3-m moving average) new unemployed (seasonally adjusted) Source: Employment Service of Slovenia, Bank of Slovenia calculations Source: Employment Service of Slovenia, Bank of Slovenia calculations. -40 tion remained low, and unchanged compared with the previous month. Labour market With hiring increasing significantly, the number of unemployed fell in September to 97,908 at end the month. The number of registered unemployed was down 1,124 on August, less than the usual September decrease before the crisis. Outflows from registered unemployment into employment stood at 6,771 in September, the highest figure in the last five years. A total of 9,113 people were newly registered as unemployed, significantly higher than the usual September influx, but less than in September of last Labour Market Sep Aug.10 Aug. Jul. Aug. Sep. EUR Average gross wage 1,284 1,391 1,439 1,478 1,415 1,481 1, annual growth in % Average net wage Average gross wage Private sector (excl. O..R)* Public sector (O..R)* Real wage** Unemployment rate - Unemployment rate (Eurostat) Registered unempl. rate (SORS) thousands Registered unemployed persons Persons in employment Persons in paid employment annual growth in % Registered unemployed persons Persons in employment Persons in paid employment Sectors: - Private (excl. O..R)* Public (O..R)* Sources: Statistical Office of the Republic of Slovenia, Bank of Slovenia calculations. Notes: * Sections of NACE Rev. 2 classification. ** CPI deflator. I.-10 Monthly Bulletin, October 2010

17 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE year. Employers notified 15,786 vacancies in September, up 6% on the same month last year. Year-on-year growth in the number of unemployed has been falling since last October, when it stood at 51.1%, reaching 10.8% in September. The registered unemployment rate has remained more or less unchanged since the beginning of the year, and stood at 10.6% in August. Despite encouraging movements in the unemployment indicators in September, the number of unemployed is expected to increase in the coming months as a result of the usual autumn seasonal movements and certain major corporate bankruptcies manufacturing services construction retail trade wage bill and average monthly gross wage per employee y-o-y growth in % Expected employment seasonally adjusted balances; 3-month moving averages Source: SORS. private sector wage bill* public sector wage bill (O..R)* average private sector gross wage average public sector gross wage (O..R) *The wage bill is calculated as the product of the average gross wage for employees of legal persons who received pay and the total number of employees of legal persons. Source: SORS, Bank of Slovenia calculations August s decline in the workforce in employment was slightly larger than the usual decline in this month. The workforce in employment in the economy as a whole fell by 1,920. Taking into account seasonal factors, the most pronounced decline was in the construction sector, where in contrast to the usual seasonal rise in the workforce in employment there was a fall of 490 in August, with the negative employment trend in this sector thus continuing. The workforce in employment was also down in current terms in the manufacturing sector, by 829, only slightly more than the usual August figure. The survey figures for employment expectations indicate considerable pessimism regarding future employment. Expectations are worst in the construction sector, where for some time now the proportion of companies expecting their workforce to contract in the next three months has been more than 40 percentage points higher than the proportion expecting an expansion. In contrast to construction, in manufacturing this indicator has been improving markedly since mid The average gross wage per employee in August was up 5.1% in year-on-year terms at EUR 1,487. Year-on-year wage growth stood at 6.6% in the private sector and 0.5% in the public sector. 1 The increase was most pronounced in the manufacturing sector, where year-on-year growth reached 11.0% in August, although productivity in this sector is also recording high year-on-year growth. The movement of wage bill is a better reflection of corporate cost adjustment to the economic situation. Year-on-year growth in the private sector's wage bill was negative for almost one year, but has recently turned positive again, reaching 3.1% in August. Wage bill in the manufacturing sector recorded year-on-year growth of 6.0% in August. Significant factor in wage growth this year is the increase in hours worked, with August recording a 4.2% year-on-year increase in the total number of work hours paid in the private sector. Selected competitiveness indicators The harmonised index of the nominal effective exchange rate appreciated in September in month-on-month 1 The public sector and private sector are distinguished according to the standard classification of economic activities. Thus the public sector includes public administration, education, health and culture. The weakness in this indicator is that it includes legal entities that do not fall within the public sector. Monthly Bulletin, October I.

18 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS Harmonised competitiveness indicators (41 countries and rest of euro area countries) y-o-y growth in % difference in price growth nominal real HICP Source: ECB Harmonised price competitiveness indicator (41 countries and rest of euro area countries) index 1999 Q1 = 100 HCIs are deflated with HICP for EU countries and CPI for all other countries. Slovenia Austria Italy Germany France Source: ECB terms but depreciated in year-on-year terms. The nominal effective exchange rate appreciated by 0.1% in September as a result of the euro s rises of 1.3% against the US dollar, 1.9% against the pound sterling and 0.1% against the Japanese yen. The euro fell against the Swiss franc by 2.3%. In contrast to the month-on-month appreciation, the year-on-year depreciation in the nominal effective exchange rate increased from 2.7% in August to 2.8% in September. The harmonised index of the real effective exchange rate as measured by consumer prices recorded similar movements in September to the nominal effective exchange rate. The real effective exchange rate appreciated by 0.2% in September, a half higher than the month-onmonth appreciation in the nominal effective exchange rate. The difference in growth was caused by domestic consumer prices, which fell in month-on-month terms in September, but by 0.1 percentage points less than the simultaneous fall in the basket of foreign prices. The real effective exchange rate was down 2.3% in year-on-year terms in September. The year-on-year depreciation in the nominal effective exchange rate contributed 2.8 percentage points towards this fall, having entirely neutralised the 0.5 percentage points by which year-on-year growth in domestic prices outpaced the basket of foreign prices. Slovenia s price competitiveness as measured by consumer prices deteriorated in September. Price competitiveness deteriorated by 0.2% in month-on-month terms in September. The index remains at a high level, and reveals that Slovenia s price competitiveness was worse than that of the most important trading euro area partners. Their price competitiveness deteriorated by 0.1% in month-on-month terms in September on average. The year-on-year comparison for price competitiveness also indicates Slovenia s poorer position relative to the most important euro area trading partners. In September this indicator improved by 2.3% in year-on-year terms in Slovenia, but by 5.3% on average in the most important trading partners. There were major differences from country to country. Price competitiveness as measured by consumer prices improved most in Germany, where the indicator recorded a year-on-year depreciation Harmonised price competitiveness indicator (41 countries and rest of euro area countries) y-o-y growth, % Slovenia Austria Italy Germany France HCIs are deflated with HICP for EU countries and CPI for all other countries Source: ECB I.-12 Monthly Bulletin, October 2010

19 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE Real harmonised competitiveness indicator GDP deflator (21 countries and rest of euro area countries) y-o-y growth rates in % Slovenia Germany France Austria Source: ECB. Italy of 6.6%. The depreciation in the indicator stood at 5.6% in Italy, 5.0% in France and 4.0% in Austria. 2 The harmonised index of price competitiveness as measured by the GDP deflator, which reflects the general level of prices in the economy, depreciated in quarter-on-quarter and year-on-year terms in the second quarter in Slovenia. In Slovenia this indicator depreciated by 1.5% in quarter-on-quarter terms in the second quarter, while recording a year-on-year depreciation for the second consecutive quarter, at 2.9%. In the main euro area trading partners the indicator recorded an average depreciation of 2.1% in quarter-on-quarter terms and 3.5% in year-on-year terms. The aforementioned competitiveness indicator recorded year-on-year depreciations of 3.8% in France and Italy, 4.5% in Germany and just under 2.0% in Austria. The harmonised indicator of cost competitiveness as measured by unit labour costs in the economy as a whole in Slovenia depreciated in the second quarter. The aforementioned indicator also depreciated in the second quarter in the main euro area trading partners. The quarteron-quarter depreciation in the indicator in Slovenia stood at just under 1%, 1.4 percentage points less than the average depreciation in the main trading partners. The Slovenian index also recorded a second consecutive year-on-year depreciation in the second quarter, at 0.9%. The year-on-year Real harmonised competitiveness indicator ULC total economy (21 countries and rest of euro area countries) y-o-y growth rates in % Slovenia Germany France Austria Source: ECB. Italy depreciations in the second quarter in the trading partners were larger, at 3.7% in Germany and Italy, and 1.8% in Austria and France. The relatively higher quarter-on-quarter growth in unit labour costs was a factor in the small quarter-on-quarter and year-on-year depreciation in Slovenia. 3 l Price Developments Year-on-year inflation as measured by the HICP remained unchanged in October at 2.1%. After declining for four months, the year-on-year fall in prices of non-energy industrial goods increased again in October by 0.6 percentage points to 1.6%. The main reason was a smaller current rise in prices of clothing and footwear compared with October The movements of oil prices on global markets and the changes in excise duties on refined petroleum products contributed to higher growth in energy prices, which were up 13.9% in year-on-year terms in October. Food prices growth declined by 0.4 percentage points to 3.4%, primarily as a result of lower prices of seasonal food and non-alcoholic beverages. Year-on-year growth in services prices was unchanged in October at -0.1% The European Commission also publishes price and cost competitiveness indicators (( These differ from those of the ECB because of methodological differences resulting from the countries involved, the different sources for the deflators and the data conversion methods. Monthly Bulletin, October I.

20 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS Year-on-year inflation rates Individual price categories y-o-y growth in % HICP all items HICP all items excluding energy, food, alcohol and tobacco euro area HICP year-on-year growth, % Source: SORS, Eurostat; Banka of Slovenia calculations HICP energy services other goods food - unprocessed food - processed food Source: SORS, Bank of Slovenia calculations The adverse situation in the macroeconomic environment is still affecting the low level of core inflation through low consumption and the impact of cost factors. Core inflation excluding energy, food, alcohol and tobacco stood at -0.5% in September, and -0.8% in October. October also saw falls in core inflation excluding energy, from 0.6% to 0.3%, and core inflation excluding energy and unprocessed food, from 0.2% to -0.1%. The high level of unemployment is continuing to impact on a low consumption of households. Consequently the level of retail sector revenues remain low, what is limiting retailers possibilities of raising prices, and is acting to curb the core inflation trend. According to detailed SORS figures, a major factor in the inflation breakdown in September was the fall in the prices of canteen services, what reduce year-onyear inflation by 0.7 percentage points. The sharp fall of 68.7% in these prices was the result of the introduction of meal subsidies for all students at primary schools. Yearon-year growth in prices of solid fuels and liquid fuels also declined, from 17.9% to 8.8% and from 26.6% to 24.3% respectively. After recording month-on-month growth in June and July and a seasonal fall in August, prices of vegetables fell again in m-o-m terms in September. This had an impact on their year-on-year growth, which was down 3.3 percentage points on August at 15.8%. After the end of the summer sales, prices of clothing rose more in m-o-m terms Price Developments Sep.10 Oct.10 Average of last 12 months Oct.09 y-o-y growth, % monthly growth, % HICP services industrial goods excluding energy food energy Core inflation indicators excluding energy excluding energy, food, alcohol, tobacco PPI Aug.10 Sep.10 Sep.09 Sep.10 total domestic non-domestic Sources: SORS, Eurostat; Bank of Slovenia calculations. Note: Figures may not sum up to official figures due to rounding. Oct.10 I.-14 Monthly Bulletin, October 2010

21 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE year-on-year growth rates in % total intermediate goods capital goods consumer goods energy Domestic producer prices Source: SORS, Banka of Slovenia calculations in September than in the same month last year, making the year-on-year rate of growth positive again after more than a year, at 2.1%. Prices of footwear also rose in year-on-year terms, by 2.4%. At 3.2%, year-on-year growth in prices of telecom products and services was up 2.6 percentage points on August as a result of promotional campaigns ending. Year-on-year growth in prices of hospital services became positive in September, reaching 3.9%, as a result of m-o-m growth in recent months and also a base effect. Growth in prices of manufactured goods on the domestic market declined slightly in September. Year-on-year growth stood at 2.8% in September, down 0.1 percentage points on August. Prices in the manufacture of coke and refined petroleum products and in the manufacture of textiles and clothing recoded the largest m-o-m falls. The largest rises were recorded by prices in the manufacture of leather and related products and in the manufacture of basic metals. Prices in the manufacture of basic metals and in water collection, treatment and supply continued to record the highest year-on-year growth. 4 l Balance of Payments Current account The current account results improved sharply as a result of a surplus in the three months to August. The current account surplus amounted to EUR 94 million in June, EUR 44 million in July and EUR 5 million in August, which reduced the current account deficit of EUR 252 million in the first five months of the year to a deficit of EUR 110 million in the first eight months of the year. The main factors in the decline in the current account surplus in August were the movements in merchandise trade and transfers. The merchandise trade deficit widened from EUR 14 million in July to EUR 84 million in August, while the surplus in transfers narrowed from EUR 26 million to EUR 7.5 million. The deficit in factor income stagnated in August, while the surplus of trade in services increased by EUR 51 million in month-on-month terms to EUR 135 million. The current account deficit over the 12 months to August narrowed to EUR 175 million or 0.5% of GDP, compared with 3.8% of GDP a year earlier. The annualised current rate of growth in merchandise trade in August was slower than the average over the first seven months of the year. The annualised month Current account components in % BDP, 3-month moving sums current account goods services factor income current transfers Source: Bank of Slovenia Monthly Bulletin, October I.

22 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS Goods trade Goods trade 2,200 mio EUR, y-o-y growth in % 40 1,800 EUR million, 3-month moving average 1,800 2, ,600 1,600 1,400 1,400 1, ,200 1,200 1,600 1,400 1,200 1,000 import of goods, y-o-y growth (rhs) export of goods, y-o-y growth (rhs) export of goods (tramo-seats) import of goods (tramo-seats) , intra EU 27 exports intra EU 27 imports extra EU 27 exports extra EU 27 imports , Source: Bank of Slovenia. Source: Bank of Slovenia. on-month rate of growth in exports declined from 23.3% to 13.7%, while the decline on the import side was larger, from 21.4% to 6.4%. 3 Despite the slowdown in the rates of growth compared with the previous month, year-on-year growth in merchandise trade was above-average. Merchandise exports were up more than 22% in year-on-year terms at EUR 1,301 million, while imports were up 13% at EUR 1,386 million. In the context of this dynamic in merchandise imports and exports, August s merchandise trade deficit was down a half in year-on-year terms at EUR 84 million. The deficit over the first eight months of the year amounted to just under EUR 400 million, and was little different from the same period last year. In the first eight months of this year merchandise trade with EU Member States increased faster than trade with non-eu countries. This was a reflection of the economic recovery in EU Member States moving faster than in most of the major trading partners outside the EU. It is only in recent months that trade with the latter has strengthened. Merchandise trade with non-eu countries strengthened sharply in August, the year-on-year rates of growth in imports and exports approaching to within 1 percentage point of those of trade with EU Member States at 13% and 22% respectively. Merchandise exports to EU Member States over the first eight months of the year were up 16.4% in year-onyear terms, while exports to non-eu countries were up 6.2%. The gap is smaller on the import side. Merchandise imports from EU Member States were up 13.2% in year-on-year terms, while imports from non-eu countries were up 9.8%. According to SORS figures, the merchandise trade deficit narrowed by EUR 10 million in year-on-year terms to EUR 650 million, as a result of a year-on-year narrowing of EUR 50 million in the merchandise trade deficit with EU Member States and a decline of EUR 40 million in the merchandise trade surplus with non-eu countries. The year-on-year movement in the index of the average value of imports and exports in the second quarter y-o-y growth in % External trade unit value indices total exports total imports terms of trade euro area terms of trade total terms of trade non-euro area Source: SORS Seasonally adjusted figures by the Tramo-Seats method, annualised current rates of growth. I.-16 Monthly Bulletin, October 2010

23 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE of this year reveals an improvement in the terms of trade with trading partners outside the euro area. The index of the average value of merchandise imports in the second quarter was up 9.7% in year-on-year terms, while that of merchandise exports was up 8.5%. Growth in the index of the average value of exports was up more on the first quarter than growth in the index of the average value of imports. The terms of trade deteriorated by 4.2% in year-on-year terms in the first quarter, but by 1.1% in the second quarter. An improvement in the terms of trade was seen in transactions with partners outside the euro area. The terms of trade with these countries improved by 0.4% in the second quarter, primarily as a result of high growth in export prices of chemical products. The terms of trade with euro area countries deteriorated by 3.4%, less than in the previous quarter. The main factor in the year-on-year growth in merchandise trade with EU Member States was intermediate goods, while the main factors in merchandise trade with non-eu countries were intermediate goods on the import side and consumer goods on the export side. Exports of intermediate goods to the EU over the first seven months of the year were up just over 25% in year-on-year terms, while exports of capital goods were down 2.6%. The largest increase in imports from EU Member States was recorded by intermediate goods, at 18.7%, although imports of other goods also strengthened. Exports to non- EU countries in the three months to July were up in year-onyear terms for all categories of goods. The largest growth was recorded by exports of consumer goods, at just under 17%. Imports from non-eu countries during the first seven months of the year were up just under 10% in year-on-year terms, imports of intermediate goods and capital goods Balance of Payments last months. Jan.-Aug. Jan.-Aug. Aug. Aug. flows in EUR millions Current account -2, % of GDP Goods and services - 1, % of GDP Openness coefficient Exports 25,091 20,468 21, ,314 14,787 1,512 1,781 % of GDP Goods 20,048 16,167 17,534 10,464 11,831 1,065 1,301 Services 5,043 4,301 4,406 2,850 2, Tourism 1, 918 1,800 1, ,262 1, Transportation 1,436 1,059 1, Imports -26,248-20,053-21, ,976-14,437-1,548-1,730 % of GDP Goods -22,698-16,866-18,236-10,860-12,229-1,226-1,386 Services -3,549-3,187-3,278-2,116-2, Tourism Transportation Labour income Investment income -1, Current transfers nominal year-on-year growth in % Exports of Goods and Services Imports of Goods and Services Exports of Goods Imports of Goods Exports of Services Imports of Services Source: Bank of Slovenia. Monthly Bulletin, October I.

24 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS recording the largest increases in the last two months, at just over 32%. The surplus of trade in services was up in both monthon-month and year-on-year terms in August as a result of favourable movements in transport and tourism services. The surplus of trade in services was in August, compared with July, up by EUR 51 million and by more than EUR 9 million in year-on-year terms at EUR 135 million. The largest factors in the year-on-year increase in the surplus in August were the surpluses in transport and tourism services, which were up EUR 6 million and EUR 19 million in year-onyear terms respectively. There was contrasting movement in trade in other services in August, which generated a deficit of EUR 16 million. The largest contributions to the deficit came from the deficits in construction services, intellectual property services, and other business services. At 4.3%, year-on-year growth in imports of services during the first eight months of the year was 0.5 percentage points higher than the simultaneous growth in exports of services. The result was a year-on-year increase of EUR 14 million in the surplus of trade in services to EUR 748 million. The deficit in factor income continued to narrow in year-on-year terms in August, primarily as a result of a decline in net outflows of income from FDI and net interest payments on loans raised in the rest of the world. The deficit in factor income over the first eight months of the year narrowed by EUR 194 million in year-on-year terms to EUR 397 million. The largest factor was the decline of EUR 139 million in the deficit in capital income, while just over of a quarter of the improvement was the result of an increase of EUR 55 million in the surplus in labour income. This year s narrowing of the deficit in capital income was the result of a decline of EUR 103 million in net outflows of income from FDI, and a decline of EUR 116 million in net interest payments on loans raised in the rest of the world. Only net income from investments in securities acted to widen the deficit in capital income, having swung from a surplus of EUR 73 million in the first eight months of the last year to a deficit of EUR 53 million in the same period this year. This was primarily the result of net outflows of income from government bonds and notes, which was the result of previous government borrowing. The deficit in factor income in the year to August stood at EUR 588 million or 1.6% of GDP. The deficit in current transfers over the first eight months of the year was down in year-on-year terms primarily as a result of a narrowing of the deficit in taxes on products and other government transfers. The deficit in factor income over the first eight months of the year stood at EUR 62 million, down EUR 145 million on the same period last year. The largest factor in this favourable movement was government transfers, including a decline in the deficit in taxes on products and other government transfers. Transfers from the EU budget amounted to just over EUR 6 million in August, having exceeded EUR 30 million in June and July. Capital and financial account After two months of net financial inflows, the private sector recorded a net financial outflow of EUR 258 million in August. Net financial outflow in august was primarily the result of an increase in claims; the decline in the private sector s liabilities was small. The largest contribution to the increase in claims came from an increase in the domestic commercial banks currency and deposits in the rest of the world, while the main factor in the decline in liabilities were trade credits. The government sector also recorded a net outflow in August, of EUR 84 million, primarily as a result of a decline in liabilities from government debt securities and an increase in deposits in the rest of the world. The Bank of Slovenia recorded a net financial inflow of EUR 354 million in August, although its cumulative position over the first eight months of the year remained a net outflow. After declining in July, the private sector s claims against non-residents increased by EUR 236 million in August, taking the increase in the first eight months of the year to EUR 647 million. Claims from currency and deposits and from loans increased in August. The largest increase was in claims from the domestic banks holdings of currency and deposits in the rest of the world, by EUR 287 million. Claims from the holdings of currency and deposits in the rest of the world by households and corporate sector increased by EUR 85 million and EUR 24 million respecti- I.-18 Monthly Bulletin, October 2010

25 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE vely. Claims from loans to non-residents increased by EUR 38 million, taking the increase over the first eight months of the year to EUR 209 million. Claims from trade credits declined by EUR 184 million in August. Outward FDI and portfolio investments also declined, by EUR 15 million and EUR 3 million respectively. The largest factor in the decline in the private sector s liabilities to the rest of the world in August was the decline in trade credits. Liabilities to the rest of the world declined by EUR 41 million over the first eight months of the year, compared with EUR 1,787 million during the same period last year. This was primarily the result of a decline in the banks debt repayments in the rest of the world and portfolio investments by non-residents in domestic securities. The private sector s liabilities to the rest of the world declined by EUR 21 million in August, in which declines in trade credits and loans to domestic banks were the largest factors. Liabilities from trade credits declined by EUR 168 million in August, but remained in a Financial claims* on the rest of the world - August 2010 flows in EUR billion, private sector +: outflow -: in flow foreign direct investments last 6 months portfolio investments Source: Bank of Slovenia. commercial credits loans households net inflow position over the first eight months of the year. Another factor in the decline in liabilities was debt repayment in the rest of the world by the private sector, particularly debt repayment in the rest of the world by the domestic banks. These liabilities thus declined by EUR 82 million in Financial and Capital Account 2009 last 12 months flows in EUR million 1. Private sector -3,183-1,995-1, Claims -1,308-1, Capital transfers Outward FDI Portfolio investments Trade credits Loans Currency and deposits -1, Households Banks Enterprises Other claims Liabilities -1, , Capital transfers Inward FDI Portfolio investments 1,891 1,334 1, Trade credits Loans -2,920-1,683-1, Enterprises Banks -2,963-1,268-2, Deposits at banks Other liabilities Government 2,842 2,800 1,501 1, Bank of Slovenia Source: Bank of Slovenia. Signs: inflows or increases in liabilities (+), outflows or increases in claims (-). Jul. Aug. Monthly Bulletin, October I.

26 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS Financial liabilities to the rest of the world - August flows in EUR billion, private sector +: inflow -: outflow last 6 months foreign direct investment portfolio investment Source: Bank of Slovenia. trade credits loans bank deposits August. While the banking sector continued to repay debt in the rest of the world, domestic corporate sector recorded borrowing of EUR 49 million in August after six months of paying down debt. This is to a great extent the result of the long-term loans raised by Gorenje with the International Finance Corporation (IFC) and a consortium of banks, whereby over EUR 100 million of long-term loans were raised for the restructuring of existing debt. The main factor in the increase in the private sector s liabilities to the rest of the world was the increase of EUR 84 million in non-residents deposits at domestic banks. FDI and portfolio investments in shares of non-banking sectors also increased. Foreign portfolio investments in domestic securities increased by EUR 28 million in August. 5 l Public Finance The general government deficit declined slightly to stand at 6.3% of GDP during the 12 months to August. The improvement was primarily the result of the repayment of Russia s clearing debt in August. The general government deficit over the first eight months of the year stood at EUR 1,475 million, down EUR 14 million on the figure over the first seven months of the year. The improvement was primarily the result of revenues from the repayment of Russia s clearing debt (around EUR 60 million) in August. The state budget deficit during the first nine months of the year stood at EUR 1,588 million, 90% of the deficit planned in the revision to this year s budget. The Health Insurance Institute also recorded a deficit over the first nine months of the year, at EUR 29 million, down from EUR 58 million in the same period last year. The deficit in local government over the first eight months of the year amounted to EUR 52 million, similar to that in the same period last year. The year-on-year decline in general government revenues over the first eight months of the year slowed to 0.4%, primarily as a result of the repayment of Russia s clearing debt in the amount of approximately EUR 60 million. Taking only tax revenues into account, the decline was correspondingly larger, at 2.4% over the first eight After increasing by EUR 102 million in July, Slovenia s net external debt fell by EUR 214 million in August to stand at EUR 11.2 billion at the end of the month. The gross external claims of the economy as a whole increased by more than the gross external debt, which resulted in a fall in the net external debt. The banking sector, the government sector and other sectors saw their gross external claims increase in August, while the Bank of Slovenia recorded a slight decline in its gross external claims. The largest contribution to the increase in gross external debt came from the Bank of Slovenia, which increased its gross short-term debt by EUR 336 million to EUR 3.3 billion, while the government sector and the rest of the private sector reduced their gross debt to EUR 8.3 billion and EUR 9.4 billion respectively year-on-year growth in % * national methodology Public finance developments 12-month moving sum balance (in % GDP)* revenues* expenditures* balance, ESA 95 (in % GDP)** **sum of quarterly public finance balances in last 12 months Source: SORS, Ministry of Finance; Bank of Slovenia calculations I.-20 Monthly Bulletin, October 2010

27 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE months of the year and 1.6% over the first nine months of the year. The slowdown in the decline in tax revenues is primarily the result of growth in collected social security contributions, which over the first nine months of the year were up 1.2% in year-on-year terms, and growth in collected VAT (up 3.4%) and excise duties (up 1.1%). Collected excise duties during the first nine months of the year were up around EUR 12 million in year-on-year terms, primarily as a result of excise duties on tobacco and alcohol. The amount of excise duties on energy and electricity was down on the first nine months of last year, despite a rise in the rates. Despite the growth in certain tax revenues, total collected tax revenues during the first nine months of the year were down in yearon-year terms, primarily as a result of a decline in collected corporate income tax and personal income tax. Compared with the first nine months of last year, corporate income tax inflows were down EUR 219 million, a reflection of the 1 percentage point cut in the tax rate, the adverse economic situation and, in particular, higher tax refunds during final settlement for last year. Personal income tax inflows during the first nine months of the year were down around EUR 59 million, primarily as a result of lower prepayments of tax on income from business activities and income from the sale of capital, and higher refunds for last year. Year-on-year growth in general government expenditure during the first eight months of the year slowed slightly, but expenditure is still exceeding revenues. Year-on-year growth in expenditure during the first eight months of the year stood at 2.6%, having exceeded 4% in the first quarter. The slowdown in growth in expenditure was primarily the result of a year-on-year decline in expenditure on investment and expenditure on goods and services, and lower payments to the EU from the second quarter. The main factors in the growth in expenditure during the first eight months of the year were interest payments (up EUR 86 million in year-onyear terms), pensions (up EUR 93 million) and transfers to the unemployed and recipients of social assistance (up EUR 33 million). Interest payments rose this year as a result of last year s relatively heavy borrowing, which was primarily related to the issue of long-term bonds in the total amount of EUR 4 billion. Similarly, growth in expenditure on interest is expected to continue rising next year as a result of this year s issues of long-term bonds in the amount of EUR 2.5 Consolidated general government (GG) balance* 2009 last 12 months to Aug Jan.- Jan.-Aug. Jan.-Aug. Aug.10 Aug.10 ** Sep.10 ** EUR millions % GDP y-o-y, % EUR millions y-o-y growth, % Revenue 14,408 14, ,293 9, Tax revenue 12,955 12, ,505 8, goods and services 4,660 4, ,034 3, social security contributions 5,161 5, ,408 3, personal income 2,093 2, ,392 1, corporate income From EU budget Other Expenditure 16,368 16, ,456 10, Current expenditure 6,801 6, ,526 4, wages and other personnel 3, 912 3, ,614 2, expenditure (incl. contributions) - purchases of goods, services 2, 510 2, ,585 1, interest Current transfers 7,339 7, ,838 5, transfers to individuals 6,024 6, ,040 4, and households Capital expenditure, transfers 1,789 1, To EU budget GG surplus/deficit -1,960-2, ,162-1,475 Source: Ministry of finance, except: ** Public Payments Administration of the Republic of Slovenia, Report on classified general government revenues and coverage (B-2); Bank of Slovenia calculations. Note: * Consolidated central government budget, local government budgets and social security funds (pension and disability insurance fund and health insurance fund) in cash accounting principle. Monthly Bulletin, October I.

28 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS billion. However, there are several actions underway aimed at controlling the growth in general government expenditure this year and in the next two years. In October the government decided to call off the collective agreement for the public sector (in order to postpone the implementation of the third and fourth phases of a new wage pay grid), while in September it submitted an emergency bill to parliament that will limit growth in expenditure over the next two years, including wages, pensions, social transfers, payments for kindergartens and local government investments. The majority of the general government deficit during the first eight months of the year was financed via the issue of securities on the domestic market, while a portion of the money was obtained via the withdrawal of government deposits at banks. The general government deficit during the first eight months of the year was financed via net borrowing in the amount of EUR 884 million. The borrowing relates primarily to the issue of the RS67 and RS68 bonds on the domestic market. A portion of the deficit was financed by the withdrawal of money from bank accounts in the amount of EUR 590 million. The general government lending/repayments and net acquisitions of equity account (the B-balance) was almost in balance over the first eight months of the year, however it is expected to be in deficit by the end of the year, as the first instalment of the loan to Greece (EUR 104 million) was transferred in September, and the second instalment of around EUR 40 Spread on 10-year government bond as compared to Germany 1, in bps Greece Portugal Italy Austria Spain France Ireland Slovenia* , Sources: Bloomberg, Bank of Slovenia calculations. Note: Spread is calculated as a difference between yield of 10-year government bond and the yield of reference German bond on a daily basis and is used as a measure of country's credit risk. * In the picture SLOREP 01/20 is used after 18.January million is expected to follow in December. The deficit in this account is expected to widen next year as a result of another loan to Greece (around EUR 140 million) and the announced recapitalisation of NLB, which the government decided on at the end of October. The spreads of 10-year Slovenian government bonds over the German benchmark bonds fell again in October, when the monthly average was down around 10 basis points on the September average of 130 basis points. 0 Financing of consolidated general government balance last August Jan.-Aug. Jan.-Aug. 3 months 2010 in EUR million Gen. govt. surplus/deficit ,960-1,162-1, Gen. govt. lending/repayments and net aquisitions of equity Gen. govt. borrowing and amortisation of debt ,051 2, Borrowing 1,142 4,938 3,388 2, Domestic 1,142 4,938 3,388 2, of which: issues of securities 961 4,739 3,325 2, External of which: issues of securities* Amortisation of debt 1, , domestic 1, , external Changes in cash and deposits ,828 1, Source: Ministry of Finance. Note: *All bond issues disbursed on domestic market are counted under domestic borrowing, despite of the residency of buyers. Out of EUR 6,500 million bonds issued from February 2009 till April 2010 EUR 5,264 million were bought by foreigners until end August I.-22 Monthly Bulletin, October 2010

29 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE 6 l Banking System* The banking system s total assets declined by EUR 321 million in September, year-on-year growth falling to 0.4%. The main factor in the decline in total assets was a decline of EUR 260 million in the banks liabilities to the Eurosystem, which was the result of the maturing of funding obtained in 1-year, 6-month and 3-month LTROs at the ECB. The banks renewed a little less than a third of the maturing liabilities to the ECB. The decline in government deposits also contributed to the decline in total assets. On the investment side there was a consequent decline of EUR 292 million in claims against foreign banks and in investments in securities. The change in loans to non-banking sectors was slightly negative in September. Year-on-year growth in loans to non-banking sectors was down on the previous month at 1.9% in September, the monthly decline in loans standing at EUR 6 million. The main factor in the decline in loans to non-banking sectors was the very modest lending to households, in the context of a decline in loans to non-financial corporations and OFIs. September s decline in loans to non-financial corporations was significantly smaller than that in August. Year-on-year growth in loans to non-financial corporations remained at -0.6%, the stock of loans declining by EUR year-on-year, % Growth in bank assets credits to nonbanks securities total assets Source: Bank of Slovenia. million. The main factor in this decline was the small domestic banks and, once again, the banks under majority foreign ownership, which have been reducing their lending activity for this segment of borrowers for some time. After relatively high lending to households was recorded in August, September s net increase in loans to households was among the lowest this year at EUR 28 million. Year-on-year growth in loans to households remained at the level of the two previous months at 10%. The average maturity of loans is continuing to lengthen. Long-term loans increased by EUR 53 million in September, while short-term loans declined by EUR 25 million. After three months of making debt repayments to foreign banks, the banks again recorded net borrowing Income statement Jan.- Sep.2010 Jan.- Sep.2010 EUR millions y-o-y, % Interest income 2, 615 2,095 1, Interest expense 1, 671 1, Net interest income Non-interest income Gross income 1,360 1,425 1, Operating costs Net provisions Profit before tax Taxes Profit after tax Source: Bank of Slovenia. * The book figures for banks are used in this section, and differ in methodological terms from the published statistics. Monthly Bulletin, October I.

30 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS % Banking performance indicators ROA ROE operating expenses/ assets Source: Bank of Slovenia (1-9) 2010 (1-9) * on average interestbearing assets net interest margin* in September, in the amount of EUR 249 million. The reasons for the borrowing by the majority of banks was the repayment of funds to the ECB for maturing LTROs and the repayment of government deposits. The banks under majority foreign ownership were the main borrowers. Deposits by non-banking sectors declined by EUR 268 million in September. The main factor in this decline was the decline of EUR 164 million in government deposits, while the decline in deposits by OFIs and households also made a contribution. The decline in government deposits had an adverse impact on year-on-year growth in deposits by non-banking sectors, which was negative for the second time this year at -1.2%. The diminished growth in deposits by other investors remains positive. Net impairments and provisioning increased again, year-on-year growth in profit consequently deteriorating further. Net interest during the first nine months of the year was up 14.9% on the same period last year, primarily as a result of lower interest expenses. The main factor in the negative growth in non-interest income and the resulting decline in year-on-year growth in gross income was losses from securities trading. Operating costs remain at last year s level, while impairments and provisioning are continuing to increase. They increased by EUR 74 million in September to EUR 447 million, a year-on-year increase of 57%. This Balance sheet Sep.2010 Sep.10 / Dec.09 y-o-y stock, EUR millions growth in % Assets Cash 1,243 1,454 1, Lending 37,561 39,618 39, to banks 4,031 5,708 5, to non-banking sectors 33,530 33,910 34, of which: corporates (non-financial corporations) 20,245 20,165 20, households 7,386 7,886 8, general government , other financial institutions 2,829 2,719 2, Financial assets / securities 7,280 8,876 8, Other 1,544 1,665 1, Liabilities Financial liabilities to Eurosystem 1,226 2, Liabilities to banks 18,146 15, of which, to foreign banks 16,091 13,024 12, Liabilities to non-banking sectors (deposits) 20,612 23,570 23, of which, to households 13,210 13,801 14, Debt securities 1,259 3,435 4, Subordinated liabilities 1,597 1,550 1, Capital 3,996 4,295 4, Other TOTAL ASSETS 47,628 51,612 51, Source: Bank monthly accounts figures. I.-24 Monthly Bulletin, October 2010

31 ECONOMIC AND FINANCIAL DEVELOPMENTS BANKA SLOVENIJE is an indication of the increase in credit risk, and is adversely affecting the operating result. The banking system s pre-tax profit during the first nine months of the year was consequently down more than a half on the same period last year at EUR 95 million The Ljubljana Stock Exchange: Market capitalisation and turnover ratio* EUR billion, ratio (right) Market cap. shares Market cap. bonds TR total (right) TR shares (right) l Domestic Financial Markets The market capitalisation of bonds on the Ljubljana Stock Exchange rose by 0.6% in September. The 25 th - issue NLB bonds were delisted upon maturity in September. The volume of trade in bonds stood at EUR 8.9 million, below the monthly average for 2009 (EUR 13.0 million) and 2010 (EUR 11.2 million). The proportion of total stock exchange volume accounted for by bonds declined to 22.2% in September, as a result of increased demand for shares. The heaviest trading was in 7 th -issue Nova KBM bonds (EUR 5.0 million in block trades), 2 nd -issue Slovenska odškodninska družba bonds (EUR 1.9 million) and 15 th -issue NLB bonds (EUR 1.8 million). The market capitalisation of shares on the Ljubljana Stock Exchange declined by 0.3% in September. The SBI TOP reached its low of the year of 803 on 14 September, finishing the month at 831. Despite the fall of 3.8% in the Krka share price, it rose by 1.5% in September, taking the year-on-year change to -21.5%. The P/E ratio stood at 43.0 on the prime market at the end of September. Shares in Center naložbe were delisted in September. The volume of trading in shares in September was above the average for 2010 at EUR 29.6 million, primarily as a result of an increase in trading in shares on the standard market (Sava, Pozavarovalnica Sava and Zavarovalnica Triglav). The proportion of the market capitalisation of shares on the Ljubljana Stock Exchange accounted for by nonresidents stood at 9.1% in September. Non-residents made net purchases of EUR 30.7 million in Slovenian securities in September, of which EUR 21.1 million was in bonds and EUR 9.5 million in shares. The heaviest trading Source: Ljubljana Stock Exchange. * TR turnover ratio; monthly turnover divided by market capitalisation at the end of period. by non-residents was in government bonds and shares in Slovenian blue-chips. Residents of Luxembourg were the largest net purchasers of bonds, while residents of Austria, Germany and the UK were major net sellers of Slovenian bonds. The largest net purchases of shares were made by residents of Austria, while residents of Switzerland made the largest net sales. Residents made net sales of EUR 2.6 million in foreign bonds, and net purchases of EUR 20.5 million in foreign shares in September. The banks made net sales of securities from the euro area, government bonds and bank bonds in particular, while insurance corporations made net purchases. Other financial intermediaries made net in % SBI TOP Slovenian stock market indices Unit value of mutual funds Source: Ljubljana Stock Exchange, Securities Market Agency, Bank of Slovenia calculations. 0.0 Monthly Bulletin, October I.

32 BANKA SLOVENIJE ECONOMIC AND FINANCIAL DEVELOPMENTS EUR million 1,500 In shares 1, Net foreign investments in Slovenia In bonds Source: Central Securities Clearing Corporation, Bank of Slovenia calculations. purchases of shares from BRIC 4 countries and net sales of bonds from the euro area, while households made net sales of securities from the euro area, the US and the former Yugoslav republics. The domestic mutual funds assets under management rose to EUR 1,947 million in September (up 0.7% on the previous month, taking the year-on-year change to +7.8%) in the context of net withdrawals of EUR 1.4 million, as a result of a rise of 1.0% in the average unit price (taking the year-on-year change to +3.1%). Balanced funds recorded net withdrawals of EUR 5.3 mil- lion, while net inflows were recorded by equity funds (EUR 0.6 million) and bond funds (EUR 4.0 million). The largest net inflows into the domestic mutual funds were recorded by the insurance sector (EUR 9.1 million) and the banking sector (EUR 3.0 million), while the largest net withdrawals were recorded by households (EUR 9.8 million) and nonfinancial corporations (EUR 2.4 million). The proportion of the mutual funds assets accounted for by liquid assets 5 declined to 10.7% at the end of September. The value of the mutual funds investments rose on the majority of markets in September: the DJ EuroStoxx index for western Europe rose by 5.3% (taking the year-on-year change to -1.8%), the S&P 500 index in the US rose by 8.8% (taking the year-onyear change to +8.0%) and the Hang Seng in China rose by 8.9% (taking the year-on-year change to +6.7%). There was greater variation in the movement in the indices in the former Yugoslav republics: the BELEX 15 fell by 0.4%, the CROBEX rose by 3.6% and the MBI-10 fell by 10.2%. The year-on-year changes in all three indices remained negative, at -24.9% for the BELEX 15, -12.8% for the CROBEX and -32.8% for the MBI-10. 1,200 1, Net Slovenian investments abroad EUR million In shares In bonds Source: Bank of Slovenia EUR million Net inflows into mutual funds Bond Balanced Equity Domestic MF total Registered foreign MF Source: Securities Market Agency, Bank of Slovenia. 4 Brazil, Russia, India and China. 5 Liquid assets include cash, deposits, money-market instruments and government bonds. I.-26 Monthly Bulletin, October 2010

33 STATISTICAL TABLES BANKA SLOVENIJE II. STATISTICAL TABLES Money and Financial Institutions Monetary Aggregates Consolidated Balance Sheet of Monetary Financial Institutions Balance Sheet of the Bank of Slovenia Balance Sheet of Other Monetary Financial Institutions Selected Assets of Other Monetary Financial Institutions by Sector Selected Liabilities of Other Monetary Financial Institutions by Sector Balance Sheet of the Bank of Slovenia - instruments Investment funds assets according to the type of fund Investment funds liabilities according to the type of fund a b a b Financial Markets and Payment Systems Bank of Slovenia Interest Rates Interbank Money Market Rates and Indexation Clauses European Central Bank Interest Rates Harmonised Long-term Interest Rates for Convergence Assessment Purposes Monetary Financial Institutions - Interest rates on Outstanding Amounts in Domestic Currency Monetary Financial Institutions - Interest Rates and Volumes on New Deposits in Domestic Currency Monetary Financial Institutions - Interest Rates and Volumes on New Loans to Households in Domestic Currency Monetary Financial Institutions - Interest Rates and Volumes on New Loans to Non-financial corporations in Domestic Currency Government Securities Rates The Ljubljana Stock Exchange: Turnover by Market Segment and Type of Securities The Ljubljana Stock Exchange: Market Capitalisation and Turnover Ratio The Ljubljana Stock Exchange: Slovenian Stock Exchange Index and Bond Index Selected Bank of Slovenia Exchange Rates - Average Rates to Selected Bank of Slovenia Exchange Rates - End of Month Rates to European Central Bank exchange rates - Average Rates European Central Bank exchange rates - End of Month Rates TARGET2 and SEPA internal credit transfer (SEPA IKP) transactions Payment Cards Other Payment Instruments and Innovative Payment Schemes Electronic Banking Credit Transfers Debit Transfers Network of Commercial Banks Balance of Payments and External Position Balance of Payments Balance of Payments Current Account by countries Capital and Financial Account by countries Trade in goods by countries Monthly Bulletin, October II.

34 BANKA SLOVENIJE STATISTICAL TABLES International Investment Position International Investment Position by countries - Assets International Investment Position by countries - Liabilities Net external debt position Net external debt position Gross External Debt Gross External Debt International reserves Public Finance Non-financial and Financial Accounts (ESA 95) of the General Government sector Non-financial Account of the General Government sector (ESA 95) Non-financial Account of the General Government sector - share in GDP (ESA 95) Financial Account of the General Government sector (ESA 95) Financial Account of the General Government sector - share in GDP (ESA 95) Revenues and Expenditures of the General Government Lending, Repayments and Financing of the General Government Central budget debt Financial Accounts Non-consolidated financial assets - outstanding amounts Non-consolidated liabilities - outstanding amounts Net financial assets Non-consolidated transactions in financial assets Non-consolidated transactions in liabilities Net financial transactions Non-Financial Accounts and General Economic Statistics Expenditure on gross domestic product Expenditure on gross domestic product (growth rates) Gross domestic product by activity Gross domestic product by activity (growth rates) Industrial production index Industrial production index (growth rates) Turnover and new orders in industry Turnover and new orders in industry (growth rates) Business tendency and consumer surveys (part 1) Business tendency and consumer surveys (part 2) Employment by Labour Force Survey (ILO) Unemployment by Labour Force Survey (ILO) Average Wages and Salaries Nominal effective exchange rate and Real harmonised competitiveness indicators Consumer price index Consumer price index (growth rates) Industrial producer price index Industrial producer price index (growth rates) II.-2 Monthly Bulletin, October 2010

35 MONEY AND FINANCIAL INSTITUTIONS 1.1. Monetary Aggregates BANKA SLOVENIJE Until in mio SIT from in mio EUR Before the entry of Slovenia into EMU Monetary aggregates of Slovenia M1 M2 M3 After the entry of Slovenia into EMU The contribution of Slovenia to monetary aggregates of EMU M1 (without currency in circulation) M2 (without currency in circulation) M3 (without currency in circulation) Currency in circulation (ECB key) Column Code Dec. 1,370,415 3,239,945 3,980, Dec. 1,682,477 3,493,226 3,502, Dec. 1,834,106 3,778,032 3,786, Jul. 1,451,285 3,378,100 3,389, Aug. 1,430,317 3,417,210 3,427, Sep. 1,446,094 3,398,118 3,408, Oct. 1,472,574 3,405,112 3,415, Nov. 1,495,553 3,444,730 3,453, Dec. 1,682,477 3,493,226 3,502, Jan. 1,656,833 3,529,763 3,538, Feb. 1,663,920 3,553,256 3,562, Mar. 1,698,375 3,598,844 3,608, Apr. 1,730,934 3,573,024 3,582, May. 1,764,568 3,622,482 3,631, Jun. 1,791,682 3,650,179 3,656, Jul. 1,781,345 3,658,570 3,665, Aug. 1,784,442 3,648,121 3,655, Sep. 1,795,790 3,713,480 3,720, Oct. 1,777,451 3,690,771 3,698, Nov. 1,777,757 3,710,262 3,718, Dec. 1,834,106 3,778,032 3,786, Dec ,149 17,441 16,595 2, Dec ,886 18,341 18,065 2, Dec ,419 18,416 18,165 3, Feb ,955 15,353 15,276 2, Mar ,948 15,581 15,451 2, Apr ,974 15,520 15,422 2, May ,146 15,856 15,764 2, Jun ,287 16,157 16,073 2, Jul ,355 16,557 16,447 2, Aug ,240 16,740 16,552 2, Sep ,257 16,767 16,598 2, Oct ,028 17,106 16,686 2, Nov ,871 16,819 15,943 2, Dec ,149 17,441 16,595 2, Jan ,168 17,261 16,557 2, Feb ,862 17,201 16,425 2, Mar ,070 17,489 16,456 2, Apr ,944 17,641 16,500 2, May ,120 17,853 16,385 2, Jun ,341 18,083 16,589 2, Jul ,020 18,029 16,694 2, Aug ,986 17,999 16,669 2, Sep ,191 18,283 17,058 2, Oct ,880 17,921 16,836 2, Nov ,888 17,935 17,472 2, Dec ,886 18,341 18,065 2, Jan ,716 18,342 18,103 3, Feb ,712 18,560 17,949 3, Mar ,838 18,614 18,401 3, Apr ,839 18,473 18,161 3, May ,184 18,604 18,606 3, Jun ,419 18,656 18,652 3, Jul ,135 18,487 18,244 3, Aug ,279 18,493 18,237 3, Sep ,340 18,496 18,241 3, Oct ,224 18,334 18,077 3, Nov ,330 18,345 18,115 3, Dec ,419 18,416 18,165 3, Jan ,449 18,428 18,250 3, Feb ,429 18,296 18,001 3, Mar ,617 18,432 18,168 3, Apr ,663 18,422 18,127 3, May ,976 18,659 18,359 3, Jun ,132 18,956 18,669 3, Jul ,127 19,071 18,886 3, Aug ,280 19,084 18,869 3, Sep ,233 18,964 18,786 3,346 Monthly Bulletin, October II.

36 BANKA SLOVENIJE 1.2. Consolidated Balance Sheet of Monetary Financial Institutions MONEY AND FINANCIAL INSTITUTIONS Until in mio SIT from in mio EUR Claims on foreign sectors (foreign assets) Claims of the Bank of Slovenia Claims of other MFIs Claims of the Bank of Slovenia on central government Assets Claims on domestic non-mfis Claims of other MFIs on general government Central government Other government Loans Securities Loans Securities Column Code 1 2 3= Dec. 1,637, ,375 2,486,083 17, , ,815 23, , Dec. 1,290,334 1,182,156 2,472,490 16, , ,754 24, , Dec. 5,591 9,735 15, , , Dec. 5,350 9,280 14, , , Dec. 4,903 9,705 14, , , = Jul. 4,808 9,584 14, , , Aug. 5,066 8,937 14, , , Sep. 5,084 9,620 14, , , Oct. 5,068 9,236 14, , , Nov. 5,076 9,710 14, , , Dec. 4,903 9,705 14, , , Jan. 4,929 9,433 14, , , Feb. 5,007 9,538 14, , , Mar. 4,924 9,531 14, , , Apr. 4,722 9,510 14, , , May 5,169 9,907 15, , , Jun. 5,035 9,593 14, , , Jul. 5,008 8,844 13, , , Aug. 5,066 9,247 14, , , Sep. 5,021 8,778 13, , ,840 Until in mio SIT from in mio EUR Bank of Slovenia Liabilities to foreign sectors Other MFIs Banknotes and coins (after ECB key) Liabilities Banknotes and coins and overnight deposits Overnight deposits at other MFIs Banknotes and coins and instruments up to 2 years Banknotes and coins and deposits up to 2 years Overnight deposits at the Bank of Slovenia Non-monetary financial institutions Other government sector (Central government excluded) Column Code 1 2 3= =6+7 9= Dec. 2,061 2,062,303 2,064, ,313 1,491,012 2,847 2,690 5,537 1,713, Dec. 3,738 2,649,902 2,653, ,771 1,694,551 5,048 1,345 6,393 1,873, Dec. 3,560 16,217 19,777 2,947 7, , Dec. 3,603 17,879 21,482 3,255 6, , Dec. 3,361 16,673 20,034 3,536 7, , Jul. 3,486 17,030 20,516 3,387 7, , Aug. 3,314 16,686 20,000 3,365 7, , Sep. 2,972 16,980 19,952 3,363 7, , Oct. 3,108 16,564 19,672 3,382 7, , Nov. 3,111 16,901 20,012 3,402 7, , Dec. 3,361 16,673 20,034 3,536 7, , Jan. 2,476 16,111 18,587 3,438 7, , Feb. 3,011 16,001 19,012 3,441 7, , Mar. 2,792 15,968 18,760 3,496 7, , Apr. 2,593 16,441 19,034 3,502 7, , May 3,128 16,734 19,861 3,535 7, , Jun. 3,105 17,224 20,328 3,565 8, , Jul. 2,731 17,075 19,806 3,602 8, , Aug. 3,062 17,068 20,130 3,574 8, , Sep. 2,781 17,321 20,102 3,572 8, ,761 II.-4 Monthly Bulletin, October 2010

37 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Assets Claims on domestic non-mfis Claims of other MFIs on other non-mfis Non-financial corporations Non-monetary fin.institutions Loans Securities Households and nonprofit institutions serving households Loans Securities Remaining Assets = = = ,495, ,683 1,025, ,533 51,319 3,877,666 4,698, ,393 7,476,228 3,083, ,357 1,289, ,165 58,911 4,893,554 5,711, ,295 8,513,508 17, ,818 1, ,228 29,780 3,984 49,090 20, ,827 2, ,790 34,232 4,374 53,235 20, ,413 2, ,797 36,831 4,301 55,740 20, ,055 2, ,450 36,313 4,298 55,003 20, ,135 2, ,675 36,531 4,258 54,792 20, ,231 2, ,781 36,837 4,260 55,801 20, ,295 2, ,829 36,920 4,263 55,486 20, ,345 2, ,761 36,839 4,321 55,946 20, ,413 2, ,797 36,831 4,301 55,740 20, ,452 2, ,928 36,829 4,303 55,493 20, ,480 2, ,045 36,999 4,276 55,820 21, ,601 2, ,172 36,586 4,329 55,370 21, ,647 2, ,316 36,744 4,293 55,268 21, ,701 2, ,257 36,795 4,410 56,280 21, ,897 2, ,449 37,116 4,538 56,281 21, ,917 2, ,453 37,138 4,481 55,471 21, ,062 2, ,380 37,268 4,460 56,041 21, ,106 2, ,471 37,450 4,375 55,624 Liabilities Banknotes and coins and instruments up to 2 years Banknotes and coins and deposits up to 2 years Deposits with agreed maturity Deposits at the Bank of Slovenia Deposits at other MFIs Deposits reedemable at notice up to 3 months Debt securities, units/shares of money market funds and repos Long-term financial obligations to non- MFIs (central government excluded) Remaining liabilities Excess of inter- MFI liabilities = = = ,687, ,355 3,524,612 9,545 3,534, ,292 1,377,822-34,406 7,476,228-1,746, ,485 3,817,641 8,114 3,825, ,374 1,581,540-54,801 8,513,508-8,700 1,280 20, ,113 1,485 7, ,090-10,058 1,265 21, ,503 1,397 9, ,235-10, , ,874 2,107 12, ,740-10,275 1,003 21, ,822 1,634 11, ,003-10, , ,793 1,701 11, ,792-10, , ,768 1,788 12, ,801-10, , ,627 1,936 12, ,486-9, , ,663 1,994 12, ,946-10, , ,874 2,107 12, ,740-10, , ,788 2,217 13, ,493-9, , ,651 2,265 13, ,820-9, , ,848 2,363 12, ,370-9, , ,840 2,430 12, ,268-9, , ,094 2,500 12, ,280-10, , ,400 2,194 12,629-1,270 56,281-10, , ,532 2,117 12,342-1,325 55,471-10, , ,521 2,145 12,656-1,410 56,041-10, , ,383 2,176 12,383-1,421 55,624 Monthly Bulletin, October II.

38 BANKA SLOVENIJE 1.3. Balance Sheet of the Bank of Slovenia MONEY AND FINANCIAL INSTITUTIONS Until in Assets Claims on foreign sectors (foreign assets) mio SIT from in mio EUR Gold Receivable from IMF Foreign cash Loans, deposits Securities Other claims Column Code = Dec. 16,873 12, ,094 1,297,370 5,511 1,637, Dec. 18,793 8, ,681 1,034,539 5,343 1,290, Dec ,635 3, , Dec ,165 4, , Dec , , Jul , , Aug , , Sep , , Oct , , Nov , , Dec , , Jan , , Feb , , Mar , , Apr , , May , , Jun , , Jul , , Aug , , Sep , ,021 Until in mio SIT from in mio EUR Banknotes and coins (after ECB key) Overnight Other MFIs Domestic currency With agreed maturity Foreign currency Liabilities Deposits Domestic sectors Overnight General government Domestic currency With agreed maturity Foreign currency Column Code = = Dec. 217, , ,990 2, ,602 2,682-66,730 69, Dec. 172,771 95, , ,465 1,296-96,992 98, Dec. 2, Dec. 3, Dec. 3,536 1, , Jul. 3, Aug. 3, Sep. 3,363 1, , Oct. 3, Nov. 3, Dec. 3,536 1, , Jan. 3,438 2, , Feb. 3,441 1, , Mar. 3, , , Apr. 3, , , May 3, , Jun. 3,565 1, , Jul. 3, Aug. 3, Sep. 3, II.-6 Monthly Bulletin, October 2010

39 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Assets Claims on domestic sectors (domestic assets) Claims on central government Claims on domestic MFIs Loans Other claims Claims on other domestic sectors Remaining assets = = , ,883 42,151 1,697,742 16,591 1, ,442 57,375 1,366, ,590 8, , ,300 2,736 9, , ,349 2,795 10, , ,912 2,729 9, , ,532 2,733 9, , ,452 2,737 9, , ,518 2,709 9, , ,516 2,734 9, , ,349 2,795 10, , ,354 2,726 10, , ,353 2,716 10, , ,312 2,767 10, , ,414 2,723 9, , ,424 2,777 10, , ,312 2,801 10, , ,434 2,813 9, , ,500 2,761 9, ,240 2,730 8,991 Liabilities Deposits Securities issued Domestic sectors Other domestic sectors Non-financial corporations Non-monetary financial institutions Foreign sectors Domestic currency Foreign currency SDR Allocation Capital and reserves Remaining liabilities = = , ,282 2, , ,927 7, ,291 34,316 1,697,742-5, ,335 3, ,381 32,449 6, ,473 35,049 1,366, , , ,375 3, , ,603 3, , , ,293 3, , ,168 3, , ,423 2, , ,282 3, , ,282 3, , ,603 3, , , ,520 2, , , ,012 3, , , ,079 2, , , ,130 2, , , ,996 3, , , ,794 3, , , ,300 2, , , ,090 3, , , ,084 2, , ,991 Monthly Bulletin, October II.

40 BANKA SLOVENIJE 1.4. Balance Sheet of Other Monetary Financial Institutions MONEY AND FINANCIAL INSTITUTIONS Until in mio SIT from in mio EUR Cash Claims on the Bank of Slovenia Accounts and deposits at the Bank of Slovenia, other claims Securities of the Bank of Slovenia Loans Assets Claims on domestic sectors (domestic assets) Claims on other MFIs Debt securities Shares and other equity Column Code = Dec. 31, , , ,494 78,119 46,846 3,864, , ,062 6,120, Dec. 39, , , ,601 90,011 25,769 4,839, , ,221 6,893, Dec , ,716 2, , Dec , ,549 2, , Dec ,234-2, ,445 3, ,218 Loans Claims on non-mfis Debt securities Shares and other equity Jul , ,277 3, , Aug , ,346 3, , Sep ,050-2, ,428 3, , Oct , ,452 3,285 1,021 41, Nov , ,410 3, , Dec ,234-2, ,445 3, , Jan ,145-2, ,560 3,079 1,013 43, Feb ,094-2, ,727 3,095 1,000 42, Mar , ,839 2, , Apr ,351 1, ,970 2, , May 224 1,024-3,349 1, ,098 2, , Jun ,426-3,184 1, ,306 2, , Jul ,098 1, ,311 2, , Aug ,117 1, ,379 2, , Sep ,095 1, ,481 2, ,933 Until in mio SIT from in mio EUR Deposits, loans from the Bank of Slovenia Liabilities to MFIs Deposits, loans from other MFIs Debt securities issued Liabilities to domestic sectors Overnight Liabilities Deposits in domestic currency With agreed maturity Liabilities to non-mfis Reedemable at notice Deposits in foreign currency Debt securities issued Column Code = Dec ,645 65, ,327 1,438, ,195 1,269, ,573 4,195, Dec ,042 88,766 1,161,185 1,471, ,476 1,374, ,254 4,609, Dec , ,882 10,202 1, , Dec. 1,230 2, ,597 11,930 1, , Dec. 2,115 2, ,178 14,410 1, , Jul. 1,757 2, ,837 13,976 1, , Aug. 1,361 2, ,971 13,973 1, , Sep. 1,264 2, ,040 14,896 1, , Oct. 1,301 2, ,925 14,862 1, , Nov. 1,292 2, ,002 14,760 1, , Dec. 2,115 2, ,178 14,410 1, , Jan. 2,105 2, ,944 14,654 1, , Feb. 2,095 2, ,135 14,749 1, , Mar. 2,085 3, ,331 13,951 1, , Apr. 2,175 3, ,346 13,700 1, , May 2,172 3, ,714 13,533 1, , Jun. 2,064 3,240 1,014 7,808 14, , Jul. 1,185 3, ,830 14, , Aug. 1,249 3, ,960 14, , Sep , ,954 14, ,045 II.-8 Monthly Bulletin, October 2010

41 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Claims on MFIs Assets Claims on foreign sectors (foreign assets) Claims on non-mfis Shares and other Cash Loans Debt securities Loans Debt securities equity Shares and other equity Remaining assets = = , ,789 90,238 51, , ,453 14, , ,536 7,219,724 18, , ,235 52, , ,509 17,542 1,182, ,935 8,349, ,753 1, ,511 2, ,735 1,397 43, ,221 1, ,995 2, ,280 1,641 49, ,930 1, ,961 2, ,705 1,480 53, ,854 1, ,936 2, ,584 1,546 51, ,203 1, ,900 2, ,937 1,508 51, ,736 1, ,953 2, ,620 1,506 52, ,371 1, ,963 2, ,236 1,538 52, ,860 1, ,975 2, ,710 1,576 52, ,930 1, ,961 2, ,705 1,480 53, ,638 1, ,964 2, ,433 1,551 53, ,474 1, ,958 2, ,538 1,475 52, ,212 1, ,964 2, ,531 1,475 52, ,186 1, ,958 2, ,510 1,557 53, ,667 1, ,945 2, ,907 1,639 54, ,688 1, ,954 2, ,811 1,689 54, ,012 1, ,003 2, ,059 1,636 53, ,415 1, ,989 2, ,468 1,759 53, ,073 1, ,984 2, ,003 1,708 53,644 Liabilities Liabilities to foreign sectors Liabilities to MFIs Liabilities to non-mfis Deposits Debt securities issued Deposits Debt securities issued Capital and reserves Remaining liabilities = = ,872,623 87, , ,062, , ,597 7,219,724 2,439,177 99, , ,649, , ,922 8,349,186 14, ,217 3,700 1,849 43,493 16, ,879 4,118 2,102 49,010 13,436 2, ,673 4,414 2,397 53,404 14,443 1, ,030 4,262 2,380 51,893 14,055 1, ,686 4,455 2,272 51,357 13,788 2, ,980 4,499 2,294 52,730 13,351 2, ,564 4,512 2,354 52,302 13,693 2, ,901 4,490 2,504 52,771 13,436 2, ,673 4,414 2,397 53,404 12,864 2, ,111 4,454 2,509 53,984 12,790 2, ,001 4,457 2,613 52,730 12,732 2, ,968 4,462 2,619 52,730 12,410 3, ,441 4,492 2,612 53,455 12,652 3,011 1, ,734 4,458 2,770 54,061 12,397 3,173 1, ,903 4,417 3,017 54,816 12,223 3,197 1, ,755 4,399 2,921 53,361 12,192 3,203 1, ,748 4,439 3,100 53,891 12,424 3,221 1, ,001 4,430 3,168 53,644 Monthly Bulletin, October II.

42 BANKA SLOVENIJE 1.5. Selected Assets of Other Monetary Financial Institutions by Sector MONEY AND FINANCIAL INSTITUTIONS Until in mio SIT from in mio EUR Column Code Claims on domestic sectors (domestic assets) Loans Debt securities By currency By purpose Shares and other Domestic Lending for house Domestic currency Foreign currency equity Foreign currency Consumer credit Other lending currency purchase = Dec. 2,099,189 2,199, , ,736 3,499,410 1,203, , ,907 6,089, Dec. 2,298,192 3,148, , ,689 4,430,534 1,096, , ,989 6,853, Dec. 26,555 1,990 2,743 2,668 23,134 2,562-1,008 32, Dec. 32,113 2,370 2,884 3,395 28,204 2, , Dec. 34,731 1,895 2,900 3,927 29,799 4,199-1,146 41, Jul. 33,601 2,017 2,869 3,637 29,113 4, , Aug. 33,628 2,003 2,877 3,694 29,060 4,036-1,031 40, Sep. 34,045 1,969 2,896 3,753 29,365 4,263-1,117 41, Oct. 33,922 1,939 2,904 3,808 29,150 4,280-1,180 41, Nov. 33,962 1,919 2,898 3,864 29,119 4,235-1,151 41, Dec. 34,731 1,895 2,900 3,927 29,799 4,199-1,146 41, Jan. 35,678 1,904 2,898 3,982 30,701 4,047-1,164 42, Feb. 34,817 1,894 2,892 4,024 29,795 4,052-1,152 41, Mar. 34,893 1,887 2,906 4,110 29,764 3,589-1,134 41, Apr. 35,430 1,859 2,887 4,174 30,228 3,716-1,155 42, May. 35,620 1,852 2,887 4,251 30,333 3,744-1,075 42, Jun. 36,524 1,392 2,827 4,490 30,599 4,061-1,113 43, Jul. 35,990 1,355 2,812 4,537 29,996 4,086-1,026 42, Aug. 35,899 1,367 2,821 4,634 29,811 4,156-1,019 42, Sep. 35,750 1,694 2,818 4,672 29,953 4,230-1,033 42,707 MFIs (S.121, S.122) Dec. 345,097 88, , , ,295 46,846 1,408, Dec. 511,086 96, , ,995 41,846 25,769 1,158, Dec. 1, , , Dec. 2, , , Dec. 4, , , Jul. 3, , , Aug. 3, , , Sep. 3, , , Oct. 3, , , Nov. 3, , , Dec. 4, , , Jan. 5, , , Feb. 3, , , Mar. 3, , , Apr. 4, ,319 1, , May. 4, ,373 1, , Jun. 4, ,611 1, , Jul. 4, ,034 1, , Aug. 3, ,887 1, , Sep. 3, ,963 1, ,396 Non-MFIs (S.123, S.124, S.125) Dec. 39, , ,533 2,419 1,799 47, , Dec. 46, , ,165 2, , , Dec. 1, , , Dec. 2, , , Dec. 2, , , Jul. 2, , , Aug. 2, , , Sep. 2, , , Oct. 2, , , Nov. 2, , , Dec. 2, , , Jan. 2, , , Feb. 2, , , Mar. 2, , , Apr. 2, , , May. 2, , , Jun. 2, , , Jul. 2, , , Aug. 2, , , Sep. 2, , ,503 II.-10 Monthly Bulletin, October 2010

43 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Claims on foreign sectors (foreign assets) Loans Debt securities Domestic currency Foreign currency Domestic currency Foreign currency Shares and other equity = (S.2) 11, ,811 12, ,748 66, ,279 20, ,683 14, ,984 70,203 1,164,076 4, , ,718 4, , ,263 5, , ,683 5, , ,559 4, , ,917 4, , ,599 4, , ,215 5, , ,691 5, , ,683 4, , ,414 4, , ,517 4, , ,511 4, , ,486 4, , ,884 5, , ,786 4, , ,033 4, , ,442 4, , ,982 MFIs (S.2) 10, ,050 12,742 77,495 51, ,981 18, ,510 12, ,364 52, ,387 2, , ,522 1, , ,741 2, , ,473 2, , ,383 1, , ,742 2, , ,343 1, , ,987 2, , ,462 2, , ,473 2, , ,113 2, , ,103 1, , ,930 1, , ,936 2, , ,442 2, , ,370 1, , ,583 1, , ,024 1, , ,631 Non-MFIs (S.2) - 29,770-17,340 5,854 52,965-75,559 1,492 26,809 6, , , , ,000 Monthly Bulletin, October II.

44 BANKA SLOVENIJE 1.5. Selected Assets of Other Monetary Financial Institutions by Sector (continued) MONEY AND FINANCIAL INSTITUTIONS Until Claims on domestic sectors (domestic assets) in Loans Debt securities mio SIT from By currency By purpose Shares and other Domestic in Lending for house Foreign currency equity Domestic currency Foreign currency Consumer credit Other lending currency mio EUR purchase Column Code = Non-financial corporations (S.11) Dec. 956,334 1,538, ,495,187 28,724 18,999 77,960 2,620, Dec. 927,775 2,155, ,083,689 28,541 14, ,919 3,236, Dec. 16, , , Dec. 19, , , Dec. 20, , , Jul. 20, , , Aug. 20, , , Sep. 20, , , Oct. 20, , , Nov. 20, , , Dec. 20, , , Jan. 20, , , Feb. 20, , , Mar. 20, , , Apr. 20, , , May. 20, , , Jun. 20, , , Jul. 20, , , Aug. 20, , , Sep. 20, , ,862 Central government (S.1311) Dec. 108,217 32, , ,133 62, , Dec. 110,035 21, , ,490 62, , Dec , , Dec , , Dec , , Jul , , Aug , , Sep , , Oct , , Nov , , Dec , , Jan , , Feb , , Mar , , Apr , , May , , Jun , , Jul , , Aug , , Sep , ,422 Other government sectors (S.1312, S.1313, S.1314) Dec. 8,139 15, , , Dec. 8,412 16, , , Dec Dec Dec Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep II.-12 Monthly Bulletin, October 2010

45 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Claims on foreign sectors (foreign assets) Loans Debt securities Domestic currency Foreign currency Domestic currency Foreign currency Shares and other equity = Non-financial corporations (S.2) ,193-40,464 9, ,296 1, , ,084 10, ,354 1, ,089 2, ,374 2, ,305 1, ,267 1, ,229 2, ,277 2, ,292 2, ,313 2, ,305 2, ,318 2, ,307 2, ,321 2, ,309 2, ,272 1, ,237 2, ,252 1, ,242 2, ,253 Central government (S.2) ,994-63,195-5, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,016 Other government sectors (S.2) ,454-2, Monthly Bulletin, October II.

46 BANKA SLOVENIJE 1.5. Selected Assets of Other Monetary Financial Institutions by Sector (continued) MONEY AND FINANCIAL INSTITUTIONS Until in mio SIT from in mio EUR By currency Loans Domestic currency Foreign currency Consumer credit Claims on domestic sectors (domestic assets) By purpose Lending for house purchase Other lending Domestic currency Debt securities Foreign currency Shares and other equity Column Code = Households and non-profit institutions serving households (S.14, S.15) Dec. 642, , , , , ,025, Dec. 694, , , , , ,289, Dec. 5,782 1,036 2,743 2,668 1, , Dec. 6,378 1,449 2,884 3,395 1, , Dec. 7,139 1,274 2,900 3,927 1, , Jul. 6,742 1,313 2,869 3,637 1, , Aug. 6,825 1,311 2,877 3,694 1, , Sep. 6,929 1,301 2,896 3,753 1, , Oct. 7,009 1,286 2,904 3,808 1, , Nov. 7,071 1,274 2,898 3,864 1, , Dec. 7,139 1,274 2,900 3,927 1, , Jan. 7,173 1,278 2,898 3,982 1, , Feb. 7,214 1,267 2,892 4,024 1, , Mar. 7,323 1,278 2,906 4,110 1, , Apr. 7,388 1,259 2,887 4,174 1, , May. 7,450 1,252 2,887 4,251 1, , Jun. 7, ,827 4,490 1, , Jul. 8, ,812 4,537 1, , Aug. 8, ,821 4,634 1, , Sep. 7,959 1,147 2,818 4,672 1, ,106 II.-14 Monthly Bulletin, October 2010

47 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Loans Claims on foreign sectors (foreign assets) Debt securities Domestic currency Foreign currency Domestic currency Foreign currency Shares and other equity = Households and non-profit institutions serving households (S.2) 591 1, , , , Monthly Bulletin, October II.

48 BANKA SLOVENIJE 1.6. Selected Liabilities of Other Monetary Financial Institutions by Sector MONEY AND FINANCIAL INSTITUTIONS Until in mio SIT from in mio EUR Overnight Deposits Liabilities to domestic sectors Domestic currency Foreign currency With agreed maturity Reedemable at With agreed maturity Overnight Short-term Long-term notice Short-term Long-term Reedemable at notice Debt securities issued Column Code = Dec. 986,985 1,175, , , , , ,169 35, ,327 61,245 4,195, Dec. 1,178,571 1,251, , , , , ,261 38, ,038 58,982 4,609, Dec. 6,887 8,913 2,857 1, ,139-21, Dec. 6,605 10,971 4,157 1, ,293-24, Dec. 7,200 9,779 9,688 1, ,521-29,920 Domestic currency Foreign currency Jul. 6,862 10,560 7,600 1, ,533-28, Aug. 7,011 10,067 7,712 1, ,525-27, Sep. 7,079 10,720 7,952 1, ,545-28, Oct. 6,940 10,487 8,190 1, ,553-28, Nov. 7,028 10,283 8,315 1, ,491-28, Dec. 7,200 9,779 9,688 1, ,521-29, Jan. 7,949 9,722 9,928 1, ,531-30, Feb. 7,139 9,479 10,260 1, ,489-30, Mar. 7,396 8,582 10,431 1, ,529-29, Apr. 7,351 8,347 10,894 1, ,512-29, May. 7,732 8,029 11,005 1, ,518-30, Jun. 7,834 8,400 11, ,823-30, Jul. 7,868 8,593 10, ,744-29, Aug. 8,027 8,634 10, ,754-29, Sep. 8,029 8,096 10, ,763-29,045 MFIs (S.121,S.122) Dec. 6,658 26,368 20,605 1,641 10,605 17,442 49,437-62,759 3, , Dec. 17,386 49,451 22,204 1,721 13,434 18,484 48,464-85,143 3, , Dec , , Dec. 8 1,492 1, , Dec , , Jul. 26 1,018 3, , Aug , , Sep , , Oct , , Nov , , Dec , , Jan , , Feb , , Mar , , Apr , , May , , Jun , ,014-6, Jul , , Aug , , Sep , ,078 Non-MFIs (S.123,S.124,S.125) Dec. 10,513 73,011 75,832 18,349 5,086 11, , ,255 34, , Dec. 21,978 86,140 55,483 36,869 18,536 10, , ,909 32, , Dec , Dec , Dec , Jul , Aug , Sep , Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep ,859 II.-16 Monthly Bulletin, October 2010

49 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Liabilities to foreign sectors Deposits Debt securities issued Domestic currency Foreign currency With agreed maturity Reedemable at With agreed maturity Reedemable at Domestic currency Foreign currency Overnight Overnight Short-term Long-term notice Short-term Long-term notice = (S.2) 21,896 42,339 55, , ,897 1,584, ,443 2,062,303 28,714 5,474 9, , ,813 2,153, ,093 98,766 2,649, ,573 11, , , ,087 12, , , ,714 10, , ,308-16, ,235 11, , ,810-17, ,001 11, , ,811-16, ,766 11, , ,318-16, ,668 10, , ,315-16, ,968 10, , ,316-16, ,714 10, , ,308-16, ,257 10, , ,320-16, ,214 10, , ,292-16, ,186 10, , ,292-15, ,381 10, , ,047-16, ,277 10, , ,058-16, ,667 10, , ,211-16, ,448 10, , ,232-16, ,388 10, , ,238-16, ,629 10, , ,256-17,001 MFIs (S.2) 14,836 38,958 54, , ,019 1,538, ,406 1,960,229 20,031 2,562 9,249-11, ,780 2,102,275-1,020 98,624 2,538, ,225 11, , , ,893 11, , , ,538 10, ,152-2,263-15, ,116 10, ,262-1,782-16, ,873 10, ,236-1,784-15, ,589 10, ,172-2,291-16, ,511 10, ,168-2,287-15, ,815 10, ,161-2,289-15, ,538 10, ,152-2,263-15, ,093 10, ,140-2,275-15, ,070 10, ,141-2,247-15, ,043 10, ,187-2,247-14, ,252 9, ,100-3,002-15, ,137 10, ,107-3,011-15, ,498 9, ,173-15, ,258 9, ,197-15, ,202 9, ,203-15, ,433 9, ,221-15,645 Non-MFIs (S.2) Monthly Bulletin, October II.

50 BANKA SLOVENIJE 1.6. Selected Liabilities of Other Monetary Financial Institutions by Sector (continued) MONEY AND FINANCIAL INSTITUTIONS Until in mio SIT from in mio EUR Overnight Deposits Liabilities to domestic sectors Domestic currency Foreign currency With agreed maturity Reedemable at With agreed maturity Overnight Short-term Long-term notice Short-term Long-term Reedemable at notice Debt securities issued Column Code = Non-financial corporations (S.11) Dec. 185, ,159 34,773 51,807 85,077 53,414 22,685 6,835 26,714 11, , Dec. 219, ,864 30,992 72,094 89,487 63,215 18,941 7,486 18,331 12, , Dec. 1,301 1, , Dec. 1,250 1, , Dec. 1,372 1, ,868 Domestic currency Foreign currency Jul. 1,189 1, , Aug. 1,274 1, , Sep. 1,327 1, , Oct. 1,273 1, , Nov. 1,324 1, , Dec. 1,372 1, , Jan. 1,323 1, , Feb. 1,262 1, , Mar. 1,421 1, , Apr. 1,391 1, , May. 1,423 1, , Jun. 1,342 1, , Jul. 1,529 1, , Aug. 1,599 1, , Sep. 1,584 1, ,829 Central government (S.1311) Dec. 12,647 97,654 12,958 1, , ,106 5, , Dec. 4, ,577 16,720 2,998 1, , ,347 4, , Dec , Dec. 8 1, , Dec. 71 1,721 1, , Jul. 20 1,677 1, , Aug. 7 1,731 1, , Sep. 14 2,463 1, , Oct. 17 2,289 1, , Nov. 15 2,231 1, , Dec. 71 1,721 1, , Jan ,854 1, , Feb. 8 1,848 1, , Mar. 28 1,037 1, , Apr , , May , , Jun , , Jul , , Aug , , Sep , ,018 Other government sectors (S.1312,S.1313,S.1314) Dec. 18,488 37,244 8,257 18, , ,182 1,612 91, Dec. 20,507 42,158 4,711 15, , ,243 2,284 95, Dec Dec Dec Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep II.-18 Monthly Bulletin, October 2010

51 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Liabilities to foreign sectors Deposits Debt securities issued Domestic currency Foreign currency With agreed maturity Reedemable at With agreed maturity Reedemable at Domestic currency Foreign currency Overnight Overnight Short-term Long-term notice Short-term Long-term notice = Non-financial corporations (S.2) 1, ,864 1, ,016 1, ,955 3,768 1, , Central government (S.2) , , , , Other government sectors (S.2) Monthly Bulletin, October II.

52 BANKA SLOVENIJE 1.6. Selected Liabilities of Other Monetary Financial Institutions by Sector (continued) MONEY AND FINANCIAL INSTITUTIONS Until in mio SIT from in mio EUR Overnight Domestic currency Deposits Liabilities to domestic sectors Foreign currency With agreed maturity Reedemable With agreed maturity Overnight Short-term Long-term at notice Short-term Long-term Reedemable at notice Debt securities issued Domestic currency Foreign currency Column Code = Households and non-profit institutions serving households (S.14,S.15) Dec. 752, , ,515 46, , , ,039 28,124 1,310 4,581 2,553, Dec. 894, , ,287 51, , , ,676 29,769 1,065 4,455 2,749, Dec. 5,244 4,942 1, , Dec. 5,103 5,495 1, , Dec. 5,501 5,008 2, , Jul. 5,418 5,379 2, , Aug. 5,469 5,297 2, , Sep. 5,465 5,241 2, , Oct. 5,399 5,209 2, , Nov. 5,432 5,101 2, , Dec. 5,501 5,008 2, , Jan. 5,587 4,883 3, , Feb. 5,634 4,735 3, , Mar. 5,640 4,506 3, , Apr. 5,709 4,308 3, , May. 5,948 4,141 3, , Jun. 5,966 4,550 3, , Jul. 5,956 4,553 3, , Aug. 5,973 4,497 3, , Sep. 5,966 4,451 3, ,778 II.-20 Monthly Bulletin, October 2010

53 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Domestic currency With agreed maturity Overnight Short-term Long-term Reedemable at notice 15 Deposits Overnight Liabilities to foreign sectors Foreign currency With agreed maturity Short-term Long-term Reedemable at notice Debt securities issued Domestic currency Foreign currency = Households and non-profit institutions serving households (S.2) 5,688 2, ,805 14,803 7, ,263 7,319 2, ,692 16,252 7, , Monthly Bulletin, October II.

54 BANKA SLOVENIJE 1.7. Balance Sheet of the Bank of Slovenia - instruments MONEY AND FINANCIAL INSTITUTIONS Millions of EUR Assets Lending to euro area credit institutionsrelated to monetary policy operations in euro Gold and gold receivables Claims on non-euro area residents Claims on euro area residents in foreign currency Main refinancing operations Longer-term refinancing operations Fine-tuning reverse operations Securities Column Code Dec. 58 1, Dec. 64 1, , Dec. 78 1, , Sep. 64 1, Oct. 64 1, Nov. 64 1, Dec. 64 1, , Jan. 64 1, Feb. 64 1, Mar. 71 1, Apr. 71 1, May. 71 1, , Jun. 68 1, , Jul. 68 1, , Aug. 68 1, , Sep. 70 1, , Oct. 70 1, , Nov. 70 1, , Dec. 78 1, , Jan. 78 1, , Feb. 78 1, , Mar. 84 1, , Apr. 84 1, , May. 84 1, , Jun , , Jul , , Aug , , Sep. 98 1, Millions of EUR Column Code Banknotes in circulation Liabilities to non-euro area residents Liabilities to euro area residents in foreign currency Liabilities Current accounts (covering the minimum reserve system) Liabilities to euro area credit instiutions related to monetary policy operations in euro Deposit facility Fixed-term deposits Fine-tuning reverse operations Dec. 2, Dec. 3, Dec. 3, Sep. 2, Oct. 3, Nov. 3, Dec. 3, Jan. 3, Feb. 3, Mar. 3, Apr. 3, May. 3, Jun. 3, Jul. 3, Aug. 3, Sep. 3, Oct. 3, Nov. 3, Dec. 3, Jan. 3, , Feb. 3, Mar. 3, Apr. 3, May. 3, Jun. 3, Jul. 3, Aug. 3, Sep. 3, II.-22 Monthly Bulletin, October 2010

55 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Assets Marginal lending facility Other claims on euro area credit institutions in euro Claims on general government in euro Securities of euro area residents in euro Intra-Eurosystem claims Other assets ,103 2, , , ,442 2, , , ,857 2, , ,969 2, , ,929 2, , ,458 2, , , ,442 2, , ,435 2, , ,403 2, , ,417 2, , ,543 2, , , ,588 2, , , ,719 2, , , ,768 2, , , ,778 2, , , ,888 2, , , ,868 2, , , ,921 2, , , ,857 2, , , ,834 2, , , ,734 2, , , ,632 2, , , ,489 2, , , ,472 2, , , ,358 2, , , ,364 2, , , ,372 2, , , ,411 2, ,975 Liabilities Debt certificates issued Other liabilities to euro area credit institutions in euro Liabilities to general government in euro Intra-Eurosystem liabilities Capital and reserves Other liabilities , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,069 2, , ,066 2, , , , , , , , , , , , , ,975 Monthly Bulletin, October II.

56 BANKA SLOVENIJE Investment funds assets according to the type of fund MONEY AND FINANCIAL INSTITUTIONS Domestic assets Outstanding amount to financial sectors 1 Outstanding amount to non-financial sectors 2 Deposits Debt securities Shares and other Shares and other Deposits Debt securities equity equity in mio EUR Column Code Dec Nov Dec Assets Jan Feb Mar Apr May Jun Jul Aug Open-end equity funds Dec Nov Dec Jan Feb Mar Apr May Jun Jul Aug Open-end bond funds Dec Nov Dec Jan Feb Mar Apr May Jun Jul Aug Open-end mixed funds Dec Nov Dec Jan Feb Mar Apr May Jun Jul Aug other funds (close-end equity and open-end other funds; money market funds excluded 3 ) Dec Nov Dec Jan Feb Mar Apr May Jun Jul Aug II.-24 Monthly Bulletin, October 2010

57 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Assets Foreign assets Deposits Outstanding amount to financial sectors 1 Debt securities Shares and other equity Deposits Outstanding amount to non-financial sectors 2 Debt securities Shares and other equity Other assets (including financial derivates) = , , , , , , , , , , , , , , , , , , , , ,184 Open-end equity funds , , , , , , , , , ,190 Open-end bond funds Open-end mixed funds other funds (close-end equity and open-end other funds; money market funds excluded 3 ) Monthly Bulletin, October II.

58 BANKA SLOVENIJE Investment funds liabilities according to the type of fund MONEY AND FINANCIAL INSTITUTIONS Liabilities Domestic liabilities Outstanding amount to financial sectors 1 Outstanding amount to non-financial sectors 2 Loans Investment fund Investment fund Loans shares/units shares/units in mio EUR Column Code Dec ,315 1,315 1, Nov ,421 1,421 2, Dec ,450 1,450 2, Jan ,442 1,442 2, Feb ,442 1,442 2, Mar ,500 1,500 2, Apr ,509 1,509 2, May ,443 1,443 2, Jun ,416 1,416 2, Jul ,402 1,402 2, Aug ,382 1,382 2,142 Open-end equity funds Dec Nov , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug ,172 Open-end bond funds Dec Nov Dec Jan Feb Mar Apr May Jun Jul Aug Open-end mixed funds Dec Nov Dec Jan Feb Mar Apr May Jun Jul Aug Other funds (close-end equity and open-end other funds; money market funds excluded 3 ) Dec Nov Dec Jan Feb Mar Apr May Jun Jul Aug II.-26 Monthly Bulletin, October 2010

59 MONEY AND FINANCIAL INSTITUTIONS BANKA SLOVENIJE Liabilities Foreign liabilities Outstanding amount to financial sectors 1 Outstanding amount to non-financial sectors 2 Investment fund Loans Loans shares/units Investment fund shares/units Other liabilities (including financial derivates) = , , , , , , , , , , ,184 Open-end equity funds , , , , , , , , , ,190 Open-end bond funds Open-end mixed funds Other funds (close-end equity and open-end other funds; money market funds excluded 3 ) Monthly Bulletin, October II.

60 BANKA SLOVENIJE 2.1. Bank of Slovenia Interest Rates (% p. a.) FINANCIAL MARKETS AND PAYMENT SYSTEMS Lombard loan Repo (7-day) Banks' reserves Overnight deposit Longterm deposit n n n n n n n r r r r r r n Column Code Sep Oct Nov Dec In SIT Bank of Slovenia Bills In EUR In USD Number of days Number of days Number of days General legal penal rate 2006 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Interbank Money Market Rates and Indexation Clause (% p. a.) SIONIA / EONIA Interbank Market SITIBOR / EURIBOR 1 month 3 months 6 months 1 year Revaluation Clauses Tolar Indexation Clause Foreign Exchange Clauses TOM USD CHF Monthly Annualized Monthly Annualized Monthly Annualized Column Code Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep II.-28 Monthly Bulletin, October 2010

61 FINANCIAL MARKETS AND PAYMENT SYSTEMS 2.3. European Central Bank Interest Rates (% p. a.) BANKA SLOVENIJE Deposit facility Main refinancing operations Marginal lending facility Column Code Dec Mar Jun Jul Oct Oct Oct Nov Dec Jan Mar Apr May Harmonised Long-term Interest Rates for Convergence Assessment Purposes (% p. a.) Yield to maturity Column 1 Code Oct Nov Dec Jan Feb Mar Apr May 4.76 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 3.82 Jun Jul Aug Sep Monthly Bulletin, October II.

62 BANKA SLOVENIJE FINANCIAL MARKETS AND PAYMENT SYSTEMS Monetary Financial Institutions - Interest Rates on Outstanding Amounts in Domestic Currency (% p. a.) Until SIT after EUR Column Code Up to 1 year 1 For house purchase Over 1 and up to 5 years 2 Over 5 years 3 Households Up to 1 year 4 For consumption Over 1 and up to 5 years 5 Non-financial corporations Over 5 years Up to 1 year Over 1 and up to Over 5 years 5 years Aug Sep Oct Nov Dec Loans 2006 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep II.-30 Monthly Bulletin, October 2010

63 FINANCIAL MARKETS AND PAYMENT SYSTEMS BANKA SLOVENIJE Deposits Deposits redeemable at notice 1,2 Households Non-financial corporations Households and non-financial corporations Repos Overnight Time deposits with agreed maturity Overnight Time deposits with agreed maturity Notice up to 3 months Notice over 3 months deposits Up to 2 years Over 2 years deposits Up to 2 years Over 2 years IR IR Until SIT after EUR Aug Sep Oct Nov Dec. Stolpec Koda Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Monthly Bulletin, October II.

64 BANKA SLOVENIJE FINANCIAL MARKETS AND PAYMENT SYSTEMS Monetary Financial Institutions - Interest Rates and Volumes on New Deposits in Domestic Currency (% p. a., volumes in mio SIT/EUR) Until SIT after EUR Column Code Households Households and non-financial corporations 1,2 Volume IR Time deposits with agreed maturity Deposits redeemable at notice Overnight Up to 1 year Over 1 and up to 2 years Over 2 years Notice up to 3 months Over 3 months IR Volume IR Volume IR Volume IR Volume deposits Aug , , , ,558 Sep , , , ,613 Oct , , , ,570 Nov , , , ,958 Dec , , , , , Jan , , , ,514 Feb , , , ,535 Mar , , , ,216 Apr , , , ,497 May , , , ,471 Jun , , , , ,625 Jul , , , , ,316 Aug , , , , ,159 Sep , , , , ,400 Oct , , , ,847 Nov , , , ,674 Dec , , , , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , , Nov , Dec , Jan , , Feb , , Mar , , Apr , , May , , Jun , , Jul , , Aug , , Sep , , Oct , , Nov , , Dec , , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , II.-32 Monthly Bulletin, October 2010

65 FINANCIAL MARKETS AND PAYMENT SYSTEMS BANKA SLOVENIJE Overnight deposits 1 Up to 1 year Non-financial corporations Time deposits with agreed maturity Over 1 and up to 2 years IR IR Volume IR Volume IR Over 2 years Until SIT after EUR Column Code , , Aug , Sep , Oct , , Nov , ,583 - Dec. Repos Volume , , , Jan , ,572 - Feb , Mar , Apr , May , Jun , Jul , , Aug , , Sep , Oct , Nov , , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , Nov , Dec Jan Feb , Mar Apr May Jun Jul Aug Sep Monthly Bulletin, October II.

66 BANKA SLOVENIJE FINANCIAL MARKETS AND PAYMENT SYSTEMS Monetary Financial Institutions - Interest Rates and Volumes on New Loans to Households in Domestic Currency (% p. a., volumes in mio SIT/EUR) Until SIT after EUR Column Code Households Bank overdraft 1 For consumption Floating rate or Over 1 and up to 5 years Over 5 years APRC up to 1 year rate fixation rate fixation rate fixation IR Volume IR Volume IR Volume IR Volume IR Aug , , , , Sep , , , , Oct , , , , Nov , , , , Dec , , , , Jan , , , , Feb , , , , Mar , , , , Apr , , , , May , , , , Jun , , , , Jul , , , , Aug , , , , Sep , , , , Oct , , , , Nov , , , , Dec , , , , Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep II.-34 Monthly Bulletin, October 2010

67 FINANCIAL MARKETS AND PAYMENT SYSTEMS BANKA SLOVENIJE For house purchase Households Loans for other purposes Floating rate or Over 1 and up to 5 years Over 5 and up to 10years Over 10 years APRC Floating rate or Over 1 and up to 5 years Over 5 years up to 1 year rate fixation rate fixation rate fixation rate fixation up to 1 year rate fixation rate fixation rate fixation IR Volume IR Volume IR Volume IR Volume IR IR Volume IR Volume IR Volume Until SIT after EUR Column Code , , , , Aug , , , ,383 Sep , , Oct , , Nov , , Dec , , Jan , , Feb , , Mar , , Apr , , May , , Jun , , Jul , , Aug , , Sep , , Oct , , Nov , , Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Monthly Bulletin, October II.

68 BANKA SLOVENIJE FINANCIAL MARKETS AND PAYMENT SYSTEMS Monetary Financial Institutions - Interest Rates and Volumes on New Loans to Non-financial corporations in Domestic Currency (% p. a., mio SIT/EUR) Until SIT after EUR Column Code Non-financial corporations Other loans up to an amount of EUR 1 million Other loans over an amount of EUR 1 million Bank overdraft Floating rate or Over 1 and up to 5 Over 5 years Floating rate or Over 1 and up to 5 Over 5 years up to 1 year rate fixation years rate fixation rate fixation up to 1 year rate fixation years rate fixation rate fixation IR Volume IR Volume IR Volume IR Volume IR Volume IR Volume Aug , , , , Sep , , , , , Oct , , ,292 Nov , , , , Dec , , , , , , Jan , , Feb , , , , Mar , , , Apr , , , , May , , , , ,700 Jun , , , Jul , , , , Aug , , , , Sep , , , Oct , , , ,075 Nov , , , , ,588 Dec , , , , , Jan Feb Mar Apr , May Jun Jul , Aug Sep Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , Nov , Dec , Jan , Feb , Mar , Apr , May , Jun , Jul , Aug , Sep , Oct , Nov , Dec , Jan , Feb Mar , Apr , May Jun , Jul Aug Sep , II.-36 Monthly Bulletin, October 2010

69 FINANCIAL MARKETS AND PAYMENT SYSTEMS 2.5. Government Securities Rates (% p. a.) BANKA SLOVENIJE Government security Issued Maturity Interest rate Government securities RS21 1 Feb Mar 2015 TOM + 1,00% 34,057,005 EUR - EUR RS23 13 Feb Feb % 40,000,000 EUR - EUR RS26 1 Jun % 49,976,500 EUR - EUR RS29 15 Jan Jan % 55,000,000 EUR - EUR RS32 15 Jan Jan % 23,865,500 EUR - EUR RS33 1 Jan Dec % 127,166,004 EUR - EUR RS38 19 Apr Apr % 68,847,000 EUR - EUR RS44 8 Nov Nov % 4,443,536 EUR - EUR RS48 2 Dec Dec % 56,465,200 EUR - EUR RS49 10 Jan Jan % 29,632,020 EUR - EUR RS50 24 Feb Feb % 48,527,000 EUR - EUR RS53 8 Apr Apr % 79,290,900 EUR - EUR RS54 15 Oct Oct % 76,295,376 EUR - EUR RS57 15 Mar Oct % 259,697,224 EUR - EUR RS59 17 Jan Feb % 1,066,332,031 EUR - EUR RS61 18 Jan Jan % 328,861,569 EUR - EUR RS62 18 Jan Mar % 390,540,053 EUR - EUR RS63 6 Feb Feb % 1,000,000,000 EUR - EUR RS64 5 Feb Feb % 1,000,000,000 EUR - EUR RS65 2 Apr Apr % 1,500,000,000 EUR - EUR RS66 9 Sep Sep % 1,500,000,000 EUR - EUR RS67 26 Jan Jan % 1,500,000,000 EUR - EUR RS68 17 Mar Mar % 1,000,000,000 EUR - EUR Eurobonds EUROBOND - EUR 11 Apr Apr % 450,000,000 EUR - EUR SLOVEN4 03/22/18 22 Mar Mar % 1,000,000,000 EUR - EUR TREASURY BILLS Treasury Bills - 3 months 128. issue 15 Jul Oct % 31,110,000 EUR - EUR 129. issue 14 Oct Jan % 25,000,000 EUR - EUR Treasury Bills - 6 months Treasury Bills - 12 months Amount outstanding Currency of the issue Indexation of the principal Currency of the payments In case of dematerialised securities, the interest rate is applied from the day of issue. Monthly Bulletin, October II.

70 BANKA SLOVENIJE 2.6. The Ljubljana Stock Exchange: Turnover by Market Segment and Type of Securities FINANCIAL MARKETS AND PAYMENT SYSTEMS Value until Turnover by Market Segment and by Type of Securities in mio SIT from Official Market Free Market Shares PIF Bonds Short-Term Securities in mio EUR Value Value % Value % Value % Value % Value % Value % Column Code ,092 61, , , , , ,004 64, , , , , ,296 62, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Jul. 38,159 26, , , , , Aug. 32,724 23, , , , , Sep. 38,696 31, , , , , Oct. 46,384 36, , , , , Nov. 32,675 23, , , , , Dec. 40,711 28, , , , , ,324 2, , , Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Source: The Ljubljana Stock Exchange and computations in BS. II.-38 Monthly Bulletin, October 2010

71 FINANCIAL MARKETS AND PAYMENT SYSTEMS 2.7. The Ljubljana Stock Exchange: Market Capitalisation and Turnover Ratio BANKA SLOVENIJE Value until Market Capitalization and Turnover Ratio in mio SIT from Official Market Free Market Shares PIF Bonds in mio EUR Value Ratio Value Ratio Value Ratio Value Ratio Value Ratio Value Ratio Column Code , , , , , , , , , , , , , , , , , , , , , , , , , , , ,138, , , , , , ,379, , , , , , ,174, ,553, , ,233, , , ,441, ,696, , ,339, , , ,049, ,124, , ,705, , ,106, ,210, ,354, , ,604, , ,449, ,514, ,694, , ,758, , ,589, Jul. 3,578, ,732, , ,867, , ,552, Aug. 3,649, ,778, , ,938, , ,546, Sep. 3,766, ,879, , ,017, , ,577, Oct. 4,384, ,561, , ,595, , ,608, Nov. 4,365, ,556, , ,626, , ,580, Dec. 4,514, ,694, , ,758, , ,589, , , , , , , , , , , , , Jan. 20, , , , , Feb. 20, , , , , Mar. 20, , , , , Apr. 22, , , , , May 23, , , , , Jun. 24, , , , , Jul. 25, , , , , Aug. 26, , , , , , Sep. 26, , , , , Oct. 25, , , , , Nov. 24, , , , , Dec. 26, , , , , , Jan. 24, , , , , Feb. 25, , , , , Mar. 22, , , , , Apr. 21, , , , , May 22, , , , , Jun. 21, , , Jul. 21, , , Aug. 20, , , Sep. 19, , , Oct. 17, , , Nov. 16, , , Dec. 15, , , Jan. 15, , , Feb. 16, , , Mar. 16, , , Apr. 17, , , May 18, , , Jun. 18, , , Jul. 18, , , Aug. 18, , , Sep. 20, , , Oct. 20, , , Nov. 19, , , Dec. 19, , , Jan. 21, , , Feb. 20, , , Mar. 21, , , Apr. 21, , , May 20, , , Jun. 20, , , Jul. 20, , , Aug. 20, , , Sep. 20, , , Source: The Ljubljana Stock Exchange and computations in BS. Monthly Bulletin, October II.

72 BANKA SLOVENIJE 2.8. The Ljubljana Stock Exchange: Slovenian Stock Exchange Index and Bond Index FINANCIAL MARKETS AND PAYMENT SYSTEMS Slovenian Stock Exchange Index (SBI) Bond Index (BIO) SBI dt d% min max BIO dt d% min max Column Code , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Jun. 5, , , Jul. 5, , , Aug. 5, , , Sep. 5, , , Oct. 5, , , Nov. 6, , , Dec. 6, , , Jan. 7, , , Feb. 7, , , Mar. 7, , , Apr. 8, , , , May 9, , , Jun. 10, , , , Jul. 11, , , Aug. 12, , , Sep. 12, , , Oct. 11, , , Nov. 11, , , Dec. 11, , , Jan. 10, , , , Feb. 10, , , Mar. 8, , , , Apr. 8, , , May 8, , , Jun. 7, , , Jul. 7, , , Aug. 7, , , Sep. 6, , , , Oct. 5, , , , Nov. 4, , , Dec. 3, , , Jan. 3, , , Feb. 3, , , Mar. 3, , , Apr. 3, , , May 4, , , Jun. 4, , , Jul. 4, , , Aug. 4, , , Sep. 4, , , Oct. 4, , , Nov. 4, , , Dec. 4, , , Jan. 4, , , Feb. 3, , , Mar. 3, , , Apr. 3, , , May 3, , , Jun. 3, , , Jul. 3, , , Aug. 3, , , Sep. 3, , , Source: The Ljubljana Stock Exchange and computations in BS. II.-40 Monthly Bulletin, October 2010

73 FINANCIAL MARKETS AND PAYMENT SYSTEMS BANKA SLOVENIJE a. Selected Bank of Slovenia Exchange Rates - Average Rates to in SIT EUR GBP CHF USD JPY CZK HUF PLN SKK HRK Column Code Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec b. Selected Bank of Slovenia Exchange Rates - End of Month Rates to in SIT EUR GBP CHF USD JPY CZK HUF PLN SKK HRK Column Code Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Monthly Bulletin, October II.

74 BANKA SLOVENIJE a. European Central Bank exchange rates - Average Rates FINANCIAL MARKETS AND PAYMENT SYSTEMS for EUR GBP CHF USD JPY CZK HUF PLN SKK DKK SEK HRK Column Code Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep b. European Central Bank exchange rates - End of Month Rates for EUR GBP CHF USD JPY CZK HUF PLN SKK DKK SEK HRK Column Code Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep II.-42 Monthly Bulletin, October 2010

75 FINANCIAL MARKETS AND PAYMENT SYSTEMS TARGET2 and SEPA internal credit transfer (SEPA IKP) transactions BANKA SLOVENIJE Value TARGET 2 SEPA IKP transactions 1,2 until in mio SIT Domestic payments 3 Cross-border payments 4 Net Cash Flow from Number Gross Value 5 Net Value 6 Number Value Number Value in mio EUR in % Column Code = (7/6)* ,270 15, , ,321 23, ,789,220 1, , ,039,796 22, ,837,077 2, , ,444,594 29, ,180,832 3, , ,351,429 40, ,486,456 4, , ,264,074 43, ,613,463 4, ,370,990 48, ,598,215 4, ,403,876 62, ,368,854 5, ,567,213 76, ,108,939 5, , Apr. 115,548 5, ,031, May 114,367 4, ,156, Jun. 118,820 5, ,305, Jul. 113,932 4, ,071, Aug. 112,899 4, ,005, Sep. 118,642 5, ,097, Oct. 116,247 5, ,059, Nov. 125,488 5, ,393, Dec. 145,117 7, ,692, Jan. 120,912 6, ,084, Feb. 110,330 6, ,800, Mar. 129,225 6, ,506, Apr. 121,402 6, ,073, May 131,262 6, ,559, Jun. 132,498 6, ,556, Jul. 123,556 6, ,302, Aug. 120,691 5, ,106, Sep. 133,030 6, ,118, Oct. 138,658 6, ,425, Nov. 141,613 6, ,540, Dec. 164,036 7, ,035, , , ,150 68, ,652,237 45, , , , ,700* 84,617.96* 55,908,926 49, , , , ,384* 63,980.68* 55,131,097 44, , Dec. 69,616 39, ,039 8, ,948,992 4, Jan. 53,895 30, ,215 8, ,430,224 3, Feb. 50,983 28, ,429 7, ,296,098 3, Mar. 51,897 29, ,382 6, ,526,999 3, Apr. 59,352 34, ,142 7, ,880,222 4, May 52,480 27, ,311 6, ,619,825 4, Jun. 54,383 30, ,267 7, ,726,126 4, Jul. 57,759 31, ,922 8, ,800,452 4, Aug. 49,509 27, ,370 6, ,129,784 3, Sep. 56,835 32, ,897 7, ,671,409 4, Oct. 58,340 47, ,251 7, ,971,699 4, Nov. 52,394 40, ,630 5, ,577,907 3, Dec. 61,639 49, ,884* 5,836.25* 5,278,181 4, Jan. 48,686 41, ,423* 4,273.01* 4,278,032 3, Feb. 47,369 43, ,533* 5,547.57* 4,168,023 3, Mar. 55,653 35, ,767* 5,169.31* 4,765,206 3, , Apr. 54,281 38, ,658* 6,399.43* 4,648,154 3, , May 51,322 28, ,782* 5,519.91* 4,517,344 3, , Jun. 55,544 35, ,561* 6,937.76* 4,901,837 3, Jul. 58,681 42, ,002* 5,439.36* 4,808,170 3, Aug. 50,575 42, ,876* 3,874.08* 4,114,660 3, Sep. 56,692 50, ,831* 6,051.54* 4,459,772 3, Oct. 63,714 48, ,909* 4,390.21* 4,703,953 3, Nov. 59,677 39, ,873* 4,221.21* 4,602,323 3, Dec. 65,209 59, ,169 6, ,163,623 4, Jan. 50,259 65, ,032 3, ,222,872 3, Feb 48,056 58, ,601 3, ,148,419 3, Mar 56,674 50, ,019 5, ,911,927 3, Apr 52,344 37, ,640 4, ,614,480 3, May 53,496 42, ,006 5, ,839,029 3, Jun. 56,981 45, ,842 4, ,891,104 3, Jul. 54,722 38, ,364 5, ,758,748 3, Aug. 51,624 37, ,614 4, ,374,121 3, Sep. 53,331 34, ,360 4, ,553,532 3, Oct. 54,480 32, ,296 5, ,676,009 3, Monthly Bulletin, October II.

76 BANKA SLOVENIJE Payment Cards FINANCIAL MARKETS AND PAYMENT SYSTEMS Number of cards in circulation - cards issued in Slovenia Debit cards 2 Domestic Under Issued by Issued by Personal Business cards licence banks enterprises cards cards Credit cards 1 Column =1+2,3+4,5+6 8 Code dec. 350, , , , ,145 83, , , dec. 374, , , , ,645 96, , , dec. 418, , , , , , ,071 1,392, dec. 443, , , , , , ,779 1,495, dec. 477, , , , , , ,450 1,707, dec. 522, , , , , , ,184 2,466, dec. 575, , , , , ,730 1,011,236 2,310, dec. 630, , , , , ,731 1,094,319 2,330, dec. 700, , , ,371 1,043, ,931 1,207,052 2,412, dec. 738, , , ,876 1,098, ,363 1,284,864 2,486, dec. 787, , , ,891 1,158, ,448 1,378,743 2,626, dec. 849, , , ,540 1,223, ,841 1,461,416 2,611, mar. 866, , , ,034 1,240, ,897 1,484,773 2,622, jun. 875, , , ,949 1,253, ,939 1,502,593 2,652, sep. 807, , , ,101 1,249, ,975 1,439,098 2,706,332 In thousands Column Code Debit cards 2 Volume of transactions in Slovenia Cards issued in Slovenia Domestic Under Issued by Issued by Personal Business cards licence banks enterprises cards cards Credit cards =1+2,3+4,5+6 8 Cards issued abroad 3 Number of transaction abroad ,993 12,245 28,147 10,091 33,231 5,006 38,238 1,216 2,278 1, ,396 15,798 33,050 11,144 38,704 5,490 44,194 5,264 2,925 1, ,794 20,139 38,426 13,506 44,209 7,724 51,933 13,933 3,745 1, ,366 21,697 40,218 14,846 47,777 7,286 55,063 26,388 4,585 1, ,877 23,117 40,599 14,394 49,138 5,856 54,994 31,988 4,752 1, ,930 24,598 41,556 17,972 52,010 7,519 59,528 37,784 5,253 2, ,338 26,377 41,342 19,373 53,228 7,486 60,715 44,145 5,011 2, ,079 28,292 41,794 21,577 55,784 7,587 63,371 49,178 5,897 3, ,408 29,579 40,281 25,706 57,308 8,679 65,987 55,182 7,221 3, ,909 27,942 35,975 26,876 53,848 9,003 62,851 59,496 7,642 4, ,725 28,711 35,688 25,748 53,310 8,125 61,435 64,520 8,911 4, ,800 28,611 34,069 23,342 51,162 6,248 57,411 68,016 7,814 5, I 6,713 6,893 7,964 5,642 12,183 1,423 13,605 16,564 1,784 1,299 II 7,071 7,511 8,594 5,988 13,047 1,535 14,582 18,743 2,189 1,583 III 6,867 7,297 8,225 5,938 12,691 1,473 14,164 18,264 2,638 1, Until in mio SIT from in mio EUR Column Code Value of transactions in Slovenia Cards issued in Slovenia Debit cards 2 Domestic Under Issued by Issued by Personal Business cards licence banks enterprises cards cards Credit cards =1+2,3+4,5+6 8 Cards issued abroad ,565 73, ,320 46, ,454 32, ,651 6,890 33,552 22, ,134 97, ,751 56, ,451 39, ,695 30,034 42,727 27, , , , , ,942 75, ,860 92,982 58,499 28, , , , , ,814 68, , ,896 77,047 32, , , , , ,342 68, , ,688 86,323 35, , , , , ,674 76, , ,105 90,031 40, , , , , ,983 93, , ,100 81,157 51, , , , , , , , ,411 91,612 59, , , , , , , , , ,853 70, ,131 1,082 1, , ,212 1, ,243 1,243 1,294 1,191 1, ,486 2, ,084 1,280 1,230 1,134 1, ,365 2, I II III Value of transaction abroad 4 10 II.-44 Monthly Bulletin, October 2010

77 FINANCIAL MARKETS AND PAYMENT SYSTEMS Other Payment Instruments and Innovative Payment Schemes BANKA SLOVENIJE Value until in mio SIT from in mio EUR Number of ATMs 1 ATMs Volume of transactions at ATMs in thousands Value of transactions at ATMs Number of EFT POS 1 POS terminals Volume of transactions at POS terminals in thousands 2 Value of transactions at POS terminals 2 Number of encashed cheques in thousands Column Code , ,010 11,361 26, ,650 1, , ,768 15,269 38, ,694 23, , , ,016 21,723 49, ,744 13, ,841 1, ,027 46, ,099 26,186 73, ,627 5,663 90, ,095 52, ,742 29,452 91, ,103 4,532 82, ,240 58, ,682 32, , ,572 2,967 51, ,389 63, ,207 34, , ,861 1,735 32, ,490 66, ,024 28, , ,676 1,350 27, ,522 64,160 1,010,028 29, , , , Cheques Value of transactions Travel cheques Value issued 2003 I 1,173 13, ,743 30,053 24, , , II 1,158 14, ,306 30,617 27, , , III 1,171 15, ,994 31,145 29, , , IV 1,240 15, ,639 32,035 29, , , I 1,272 15, ,576 32,496 27, , , II 1,322 15, ,299 33,321 28, , , III 1,354 16, ,242 34,302 27, , , IV 1,389 16, ,090 34,770 27, , , I 1,409 15, ,762 27,031 24, , , II 1,435 17, ,915 27,746 25, , , III 1,456 16, ,691 28,276 28, , , IV 1,490 16, ,656 28,817 31, , , I 1,499 15, ,180 28,587 26, , , II 1,510 16, ,363 29,148 30, , , III 1,522 16, ,059 29,259 29, , , IV 1,522 15, ,426 29,234 29, , , ,643 61,146 4,731 31, ,895 4, ,731 61,567 5,218 33, ,581 5, ,786 61,370 5,356 32, ,991 5, I 1,547 14,565 1,019 29,843 30,821 1, II 1,575 15,953 1,229 29,926 33,405 1, III 1,619 15,184 1,236 29,632 32,280 1, IV 1,643 15,444 1,246 31,529 33,388 1, I 1,648 14,536 1,164 31,748 32,496 1, II 1,685 16,040 1,353 32,581 35,316 1, III 1,697 15,275 1,342 33,017 33,238 1, IV 1,731 15,716 1,359 33,490 33,531 1, I 1,731 14,430 1,221 33,815 30,808 1, II 1,753 15,877 1,392 34,139 34,056 1, III 1,779 15,457 1,378 33,155 33,636 1, IV 1,786 15,606 1,365 32,883 34,492 1, I 1,793 14,283 1,247 31,236 31,908 1, II 1,797 15,835 1,424 32,092 35,469 1, III 1,798 15,242 1,410 32,249 35,018 1, Monthly Bulletin, October II.

78 BANKA SLOVENIJE Electronic Banking FINANCIAL MARKETS AND PAYMENT SYSTEMS Value until in mio SIT from in mio EUR Natural persons, Sole proprietors Personal computer banking via Internet Users Volume of transactions in thousands Value of transactions Legal persons Natural persons, Sole proprietors Domestic transactions Cross border transactions Domestic transactions legal persons Cross border transactions Natural persons, Sole proprietors Domestic transactions Cross border transactions Domestic transactions Legal persons Cross border transactions Stolpec Koda ,082 1, , ,395 67, ,440 14,091 3, , , ,126, , ,669 34,094 7, , ,775 9,893 12,652,713 1,019, ,334 41,592 9, , ,965 19,988 17,715,548 1,485, ,560 45,008 12, , ,660 13,617 21,227,533 2,185, ,928 48,543 15, , ,221,006 22,556 22,884,609 3,042, ,111 70,287 20, , ,454,449 28,684 25,790,907 3,876, ,210 61,955 24, , , ,711 22, ,337 81,816 27, ,096 1,176 8, ,101 28, ,572 96,401 29, ,585 1,116 8, ,477 21, III 393,342 59,886 6, , , ,269 6,180 IV 407,210 61,955 6, , , ,509 6, I 427,240 63,891 6, , , ,364 6,787 II 439,655 67,678 6, , , ,554 7,162 III 449,207 70,565 6, , , ,980 7,180 IV 463,337 81,816 7, , , ,203 7, I 486,493 86,214 7, , , ,116 5,351 II 487,471 90,641 7, , , ,146 5,413 III 498,895 93,690 7, , , ,741 5,181 IV 509,572 96,401 7, , , ,473 5, I 512,337 97,060 7, , , ,020 4,640 II 523,818 98,507 7, , , ,604 5,312 III 534,325 99,899 7, , , ,469 5,526 Value until in mio SIT from in mio EUR Telebanking and mobile phone banking Volume of transactions in Value of transactions thousand Domestic transactions Cross border transactions Domestic transactions Cross border transactions Stolpec Koda , , , ,193 4, III IV I II III IV I II III IV I II III II.-46 Monthly Bulletin, October 2010

79 FINANCIAL MARKETS AND PAYMENT SYSTEMS Credit Transfers BANKA SLOVENIJE Value until in milliards SIT from in millions EUR Volume (in thousands) Paper based payment Of which domestic transactions Value Of which domestic transactions Non-paper based payment Volume (in thousands) Of which domestic transactions Value Of which domestic transactions Column Code ,508 86,757 16,277 11, ,004 91,124 23,496 18, I 21,526 21,335 4,444 3, II 22,818 22,595 5,587 4, III 23,277 23,056 5,972 4, IV 24,382 24,138 7,493 6, ,550 76, ,959 96, ,935 72,533 79,538 71, ,982 65,647 62,860 57, I 18,337 18,203 28,025 25, II 18,908 18,785 30,377 28, III 18,925 18,834 25,171 23, IV 20,380 20,275 21,386 19, I 17,876 17,774 19,668 17, II 19,497 19,391 22,309 20, III 17,403 17,306 18,457 16, IV 18,159 18,062 19,104 16, I 16,481 16,393 16,362 15, II 16,852 16,766 16,014 14, III 16,065 15,987 15,582 14, IV 16,584 16,500 14,902 13, I 19,401 19,303 15,439 13, II 16,641 16,538 13,503 12, III 15,918 15,834 13,992 12, Value until in milliards SIT from in millions EUR Volume (in thousands) Standing orders Of which domestic transactions Value Of which domestic transactions Direct credit Volume (in thousands) Of which domestic transactions Value Of which domestic transactions Column Code ,484 4, ,434 16,429 6,111 6, ,963 3, ,050 18,049 6,736 6, I 1,204 1, ,788 3,787 1,487 1,483 II ,467 4,466 1,770 1,766 III ,443 4,443 1,738 1,732 IV ,353 5,352 1,742 1, ,624 4,624 2,105 2,060 21,284 21,284 12,249 12, ,199 4,199 1,977 1,932 21,037 21,037 12,116 12, ,188 4,188 2,611 2,595 20,784 20,784 12,024 12, I 1,223 1, ,916 4,916 2,660 2,659 II 1,124 1, ,432 5,432 3,145 3,141 III 1,200 1, ,587 5,587 2,914 2,913 IV 1,076 1, ,349 5,349 3,530 3, I 1,020 1, ,741 4,741 2,891 2,889 II 1,023 1, ,666 5,666 3,253 3,253 III 1,067 1, ,381 5,381 2,861 2,861 IV 1,090 1, ,249 5,249 3,110 3, I 1,138 1, ,836 4,836 2,790 2,790 II 1,017 1, ,572 5,572 3,321 3,321 III 1,026 1, ,168 5,168 2,894 2,894 IV 1,008 1, ,209 5,209 3,019 3, I ,931 4,931 3,043 3,043 II ,386 5,386 3,243 3,243 III ,357 1,356 5,289 5,289 3,014 3,014 Monthly Bulletin, October II.

80 BANKA SLOVENIJE Debit Transfers FINANCIAL MARKETS AND PAYMENT SYSTEMS Value until in milliards SIT from in millions EUR Stolpec Koda Volume (in thousands) Direct debit Value Volume (in thousands) Debit transfers Special money order Of which Of which Of which domestic domestic domestic transactions transactions transaction Of which domestic transactions 8 Other debit transfers Volume (in thousands) Value Of which Of which domestic transactions domestic transactions ,934 35, ,746 22,688 5,820 5, ,237 40, ,219 28,144 6,499 6, I II 8,107 8, ,973 5,962 1,163 1,084 III 9,001 9, ,372 5,360 1,224 1,127 IV 9,424 9, ,671 5,658 1,330 1, I 8,228 8, ,305 5,292 1,251 1,144 II 9,121 9, ,667 5,653 1,340 1,251 III 9,207 9, ,670 5,654 1,459 1,340 IV 9,378 9, ,105 6,089 1,770 1, I 9,306 9, ,228 6,213 1,508 1,378 II 9,633 9, ,375 7,357 1,509 1,493 III 10,605 10, ,124 7,105 1,636 1,489 IV 10,694 10, ,491 7,470 1,846 1, ,733 41,733 1,848 1, ,085 4,000 16,124 12, ,506 41,506 1,984 1, ,848 4,743 17,530 13, ,304 46,304 2,219 2, ,324 4,320 13,564 13, I 9,959 9, ,580 2,869 II 10,469 10, ,757 3,050 III 10,531 10, , ,244 3,350 IV 10,774 10, ,138 1,113 4,543 3, I 10,733 10, ,117 1,093 4,129 3,230 II 9,883 9, ,234 1,208 4,391 3,352 III 9,991 9, ,221 1,195 4,358 3,404 IV 10,898 10, ,276 1,248 4,651 3, I 11,211 11, ,139 1,137 3,144 3,144 II 10,965 10, ,091 1,090 3,048 3,047 III 12,087 12, ,042 1,041 3,668 3,668 IV 12,042 12, ,053 1,052 3,704 3, I 11,877 11, ,022 1,021 3,271 3,270 II 12,335 12, ,134 1,133 3,610 3,609 III 12,841 12, ,107 1,106 3,559 3,559 Value II.-48 Monthly Bulletin, October 2010

81 FINANCIAL MARKETS AND PAYMENT SYSTEMS Network of Commercial Banks BANKA SLOVENIJE Commercial banks (Head offices) No. Region 1 Network 2 ( ) H.office Branch Agency 1 Pomurska Podravska Koroška Savinjska Zasavska Spodnjeposavska Jugovzhodna Slovenija Osrednjeslovenska Gorenjska Notranjsko-kraška Goriška Obalno-kraška TOTAL Number of employees in commercial banks ,445 10,929 11,258 11,543 11,397 11,534 11,632 11,714 11,878 12, ,994 Density of the banking network by local comunities Monthly Bulletin, October II.