1. LJUBLJANA, JUNE 19, 2012 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 highest in the euro area Source: IMF, BoS. Note:*Data for q2 2011, **Data for q3 2011.

5. Capital adequacy (TIER 1) of Slovenian banks is among the lowest in the euro area and didn’t strengthen during the financial crisis Surce: IMF, BoS. Note:*Data for q2 2011, **Data for q3 2011, ***Data for 2010.

6. Loans are a very important source of finance for Slovenian companies; the share of long-term sources of finance is lower Vir: Eurostat, BS, preračuni UMAR

7. During the financial crisis indebtedness of Slovenian companies didn’t decrease Source: AJPES, calculations by IMAD.

8. Ratio of loans to equity deteriorated in 2011 Vir: Eurostat, BoS, calculations by IMAD.

9. Issues The main issue in the Slovenian financial system is to ensure its normal functioning and increased support for the Slovenian business sector to exit the crisis. It is necessary to ensure: (i)A strong capital base of the banking system capable of taking risks (ii)Active management of banking assets based on economic arguments (iii)Greater responsibility of owners in managing companies and more effective bankruptcy procedures (iv)Reduction of the role of state in active management of state- owned companies (v) Prevention of risk migration between financial system and public finance by consolidating public finance