Slovenia, officially the Republic of Slovenia, is a nation state in southern Central Europe, located at the crossroads of main European cultural and trade routes. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the south and southeast, and the Adriatic Sea to the southwest. It is a parliamentary republic and a member of the United Nations, European Union, and NATO. The capital and largest city are Ljubljana. The territory is mostly mountainous with a mainly continental climate, with the exception of the Slovene Littoral that has a sub-Mediterranean climate and the northwestern area that has an Alpine climate. Additionally, the Dinaric Alps and the Pannonian Plain meet on the territory of Slovenia. The country, marked by a significant biological diversity, is one of the most water-rich in Europe, with a dense river network, a rich aquifer system, and significant karst underground watercourses. Over half of the territory is covered by forest. The human settlement of Slovenia is dispersed and uneven.
The Slavic, Germanic, Romance, and Hungarian languages meet here. Although the population is not homogeneous, the majority is Slovene. Slovene is the official language throughout the country, whereas Italian and Hungarian are co-official regional minority languages in those municipalities where the Italian and the Hungarian minority are present. Slovenia is a largely secularized country, but Catholicism, as well as Lutheranism, has significantly influenced its culture and identity. The economy of Slovenia is small, open, and export-oriented and has been strongly influenced by international conditions. It has been severely hurt by the Eurozone crisis, started in the late 2000s. The main economic field is services, followed by industry and construction. World War I brought heavy casualties for the Slovenes, particularly the twelve Battles of the Isonzo, which took place in present-day Slovenia's western border area. Hundreds of thousands of Slovene conscripts were drafted into the Austro-Hungarian Army, and over 30,000 of them died. Hundreds of thousands of Slovenes from Gorizia and Gradisca were resettled in refugee camps in Italy and Austria. While the refugees in Austria received decent treatment, the Slovene refugees in Italian camps were treated as state enemies, and several thousand died of malnutrition and diseases between 1915 and 1918. Entire areas of the Slovene Littoral were destroyed.
GDP of Slovenia
Slovenia has a long tradition of sound banking, which dates back to 1900 (when the first incorporated domestic bank, Ljubljanska Banka, was first established). Slovenian banks operating until the end of WW II were abolished as independent commercial banks during the early socialist period from 1945 to 1960. They re-emerged as profit-oriented financial institutions during the period of economic reforms that began in 1965, but later they were converted into captive financial service providers to self-managed enterprises. Only later, in the 1980s, did banks increasingly regain their role of for-profit financial institutions.
Certain salient features of Slovenian banking – including the early introduction of a two-tier banking system in the late 1950s, the ownership of banks by enterprises, and openness to the world – led to a unique starting point for the country’s banks at the beginning of the transition in the 1990s. Later on, these particular features also paved the way for specific solutions in the area of banking restructuring. Rehabilitation of the sector after independence was undertaken according to the Western model for rich countries, using government budget resources and government intervention.
Due to the changes in the early 1990 (transition and separation from Yugoslavia) the “old” banks (smaller “new” banks started to emerge as of 1991) lost their assets in other parts of Yugoslavia, most loans to domestic companies became non-performing due to the collapses of the companies, and there was no money to repay foreign exchange deposits of the population both in Slovenia and in the branches of the two banks (“Ljubljanska banka” in particular) in other Yugoslav republics. The two largest “old” banks were placed in formal rehabilitation status at the beginning of 1993 and a third, smaller bank followed at the beginning of 1994. These three banks accounted for more than half of the entire banking sector, making banking restructuring in Slovenia a venture of unprecedented scope. The Bank Rehabilitation Agency (BRA), established in 1991, became the main (temporary) owner of these banks and played a major role in the supervision of banks under rehabilitation, in the management of bad assets, and in the management of part of the public debt, through its servicing of government bonds swapped for bad bank assets. In the year 1997, the rehabilitation of two biggest banks that were turned into state property, Nova Ljubljanska Banka d.d. (NLB) and Nova Kreditna Banka Maribor (NKBM) was successfully completed. The privatization of the two above mentioned State-owned banks through a tender was announced in 2002.
|Agriculture||Potatoes, wheat, hopes, sugar beets, corn, grapes, cattle, sheep & poultry.|
|Manufacture||Electronics, trucks, chemicals, zinc, aluminum, paper products, textile & wood products.|
|Services (Including financial)||68.3% (2013 estimate)|
|Hypo Alpe-Adria Bank||Banking|
|Nova Ljubljanska Banka||Banking|
Ljubljana Stock Exchange or LJSE is a stock exchange located in Ljubljana, Slovenia. It is Slovenia's only stock exchange. The exchange trades shares of Slovenian companies, as well as bonds and commercial papers. The only stockholder of the Ljubljana Stock Exchange is the Zagreb Stock Exchange. The existing Ljubljana Stock Exchange was established in 1989. However, a brokerage in Slovenia has a much longer tradition: the first stock exchange in Ljubljana existed as early as in the period between 1924 and 1942. Unfortunately, during the Second World War the trading on the old exchange was suspended, and after the war also officially banned by a decree. Slovenians were thus left without a stock exchange for almost half a century. Then in 1989, the Ljubljana Stock Exchange was officially established. In the year 1993 LJSE introduced electronic trading on BTS - on complex Stock Exchange Information System three times a week, floor trading still remained on Tuesdays and Thursdays.
The new system of electronic information dissemination - SEOnet was launched in the year 2002. Three years later LJSE introduced the elite segment of the official market, listing Slovenia's prime companies, and named it Prime Market. In the middle of the year 2008 the first regional road show of SE Europe, organized by all 8 exchanges from the region, was held in Zagreb. In the same year, the Vienna Stock Exchange became the new majority owner of the LJSE (it acquired an 83.34% share). The year 2009 was crucial for the establishment of "CEE Stock Exchange Group" (CEESEG), which at the time comprised the Vienna Stock Exchange and the stock exchanges of Budapest, Ljubljana, and Prague. In the year 2010 there were a lot of important events: The SBITOP Index as the first genuine LJSE blue-chip index became a benchmark index, LJSE launched INFO HRAMBA - the new information system for the central storage of regulated information of all issuers on the LJSE, LJSE published the Slovene Capital Market Development Strategy, which had been prepared in cooperation with the capital market participants and was the answer to the changed economic and financial circumstances in the previous two years, LJSE proposed the introduction of 'P accounts' in the third pension pillar, LJSE started trading on the international trading system Xetra® and thus became integrated into the international capital market. As of July 2015, Zagreb Stock Exchange owns Ljubljana Stock Exchange.
After Greece and Spain, now Slovenia, once the “ model pupil” of the European Union in Eastern Europe, is slipping into the vortex of the European banking crisis. The former Yugoslav republic, which joined the EU in 2004 and introduced the common European currency in 2006, is becoming the “ Spain of Eastern Europe” as the Financial Times Deutschland wrote. Recently, the Slovenian Ministry of Finance confirmed that the country’s largest bank needed additional assistance of €500 million. The Nova Ljubljanska Banka (NLB) holds bad loans totaling €1.5 billion. It had already received emergency funding of €380 million in late June.
The government in Ljubljana announced that it now also plans to check the loans of Slovenia’s second and third largest banks, and submit a recovery plan for the entire financial sector. In discussion is the setting up of a " bad bank" that takes over the bad loans of financial institutions. The National Economic Institute estimates that Slovenian banks hold bad loans totaling at least €6 billion. The Slovenian state is the largest shareholder in the Nova Ljubljanska Banka, controlling 45 percent of its shares. The Belgian financial group KBC, which owns 25 percent, itself received state assistance during the financial crisis and had to give up its holdings under pressure from the EU. The second largest bank in the country, Nova Kreditna Banka Maribor, is 50 percent state-owned.
The Moody’s rating agency had lowered the credit rating of both institutions in the spring, citing a “ marked deterioration in the loan portfolio” Slovenia is among the Eastern European countries hardest hit by the financial crisis. After EU accession in 2004, an enormous housing bubble was created, which burst after the outbreak of the financial crisis in 2008. Many Slovenian companies, especially in the construction industry, went bankrupt. The outlook now is very bleak. After Slovenia went into recession in 2011, the economy will shrink further in 2012. Analysts expect a two percent decline this year. The Slovenian sovereign debt crisis was aggravated after the turmoil in the Eurozone in the second half of 2011. In November 2011 the yields on 10-year government bonds rose above 7%. They exceeded the 7% limit yet again in January 2012 as well as in August 2012. The most critical period is over for now since the yields on 10-year government bonds have fallen below 4% on the secondary market. However, insofar as there are no prospects for high growth in the near future, and seeing that problems in the corporate and banking sector are far from resolved, there are no indicators to suggest that the sovereign debt will disappear any time soon.
The tolar was the currency of Slovenia from 8 October 1991 until the introduction of the euro on 1 January 2007. It was subdivided into 100 stotinov (cents). The ISO 4217 currency code for the Slovenian Tolar was SIT. From October 1991 until June 1992, the acronym SLT was in use. The name tolar comes from Thaler and is cognate with the dollar. The tolar was introduced on 8 October 1991. It replaced the 1990 (Convertible) version of Yugoslav dinar at parity. On 28 June 2004, the tolar was pegged against the euro in the ERM II, the European Union exchange rate mechanism. All recalled banknotes can be exchanged at the central bank for current issue.
On 1 January 2007, the tolar was supplanted by the euro. Slovenia issues its own euro coins, like all other nations in the Eurozone. The timescale for conversion from the tolar to the euro operated differently from the first wave of European Monetary Union (EMU). The permanent euro/tolar conversion rate was finalized on 11 July 2006 at 239.640 tolars per euro. During the first wave of EMU, this period was only a day (the conversion rates were fixed on 31 December 1998 and euro non-cash payments were possible from 1 January 1999). Also unlike the first wave of EMU which had a three-year transition period (1999–2001), there was no transition period when non-cash payments could be made in both tolar and euro. The tolar was used for all transactions (cash and non-cash) until 31 December 2006 and the euro must be used for all payments (cash and non-cash) from 1 January 2007. However, as with the first wave of EMU, cash payments with the tolar could continue until 14 January 2007, but the change had to be given in euro.
The first banknotes were provisional payment notes issued on 8 October 1991, in denominations of 1, 2, 5, 10, 50, 100, 200, 500, 1000, and 5000 tolarjev (0.50 and 2000 tolarjev notes were also printed, but never issued; one thousand sets with matching serial numbers were sold for 5,000 tolarjev each beginning on 6 May 2002). These notes all feature Triglav, the tallest mountain in Slovenia, on the front, and Duke Stone, honeycomb pattern, and Carniolan honey bee on the back. In 1992, the Bank of Slovenia introduced the following banknotes, all of which feature notable Slovenes. Miljenko Licul and coauthors designed the banknotes, whereas portraits were drawn by Rudi Španzel. The British company De La Rue on paper produced in Rade?e, Slovenia printed them.
|GDP / GDP Rank||66.229 Billion USD|
|GDP Growth Rate||2.9 Percent|
|GDP Per Captial||$32084.867 (PPP)|
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
President – Borut Pahor
Prime Minister – Marjan Šarec
|Website||Go to the web|
|Public Debt||78.906 Percent|
|Unemployment Rate||8.693 Percent|
|Labor Force (Occupation)||-|