1. LJUBLJANA, JUNE 19, 2013 IMPACT OF THE CRISIS ON THE CREDIT MARKET IN SLOVENIA

2. Year-on-year growth rates of loans to non-banking sectors in Slovenia continue to decrease Source: BoS, calculations by IMAD.

3. The rapid deterioration of the quality of banks` assets continues and banks are increasingly creating provisions and impairments Source: BoS, calculations by IMAD.

4. The share of non-performing loans in Slovenian banks is among the largest in the euro area Source: IMF, BoS. Note:**Data for q2 2012, ***Data for q3 2012.

5. Capital adequacy (TIER 1) of Slovenian banks is among the lowest in the euro area and didn’t strengthen during the financial crisis Source: IMF, BoS. Note:**Data for q2 2012, ***Data for q3 2012.

6. Dependence of the Slovenian banking sector on foreign debt sources has declined considerably Source: World Bank, ECB, BoS, calculations by IMAD.

7. Liquidity pressures on Slovenian banks in 2013 are lower compared with previous years Source: BoS.

8. Indebtedness of companies and NFIs improved in 2012 Vir: Eurostat, BoS, calculations by IMAD.

9. Credit to GDP gap shows a considerable decline of credit activity in Slovenia Source: ECB, BoS, SORS, calculations by IMAD.

10. Issues - Strengthening of the Slovenian banking sector is one of the major structural reforms to revitalize the Slovenian economy. - Banks with cleaned balance sheets and strong capital foundation will be capable to take additional risk, which will reinforce lending activity. - Stable conditions in the banking sector and reduction of state ownership will prevent risk transfer between the financial system and public finance. - To provide stable financial structure of Slovenian business sector it is essential to ensure functioning other segments of financial services based long term sources of finance.