IMF urges Slovenia to speed up privatisation

Telekom Slovenije, D.d

19/02/2015 17:24

By Marja Novak 
    LJUBLJANA, Feb 19 (Reuters) - The International Monetary 
Fund (IMF) urged Slovenia on Thursday to speed up the sale of 
companies that were slated for privatisation in 2013, and to 
eventually sell all non-strategic state assets. 
    The euro zone country decided in 2013 to sell 15 state 
firms. Just three of those have been sold. 
    The government hopes to sell the largest firm on the 
privatisation list, telecom operator Telekom Slovenia  TLSG.LJ , 
and the second largest bank, Nova KBM (NKBM), in the coming 
weeks. 
    "A few early and successful sales, such as of the telecom 
company and NKBM ... can send a strong signal to the markets 
about Slovenia's commitment to privatisation and openness to FDI 
(foreign direct investment)," the IMF said in an analysis on 
Slovenia. 
    The country should ultimately "aim to divest all 
non-strategic state assets", it added. 
    The government plans to compile another list of companies to 
sell in the coming months and to gradually sell most of its 
banks in the next few years. ID:nL5N0VS3QT  
    The euro zone country narrowly avoided an international 
bailout in 2013, when the government poured more than 3 billion 
euros ($3.4 billion) into local banks to prevent them from 
collapsing under a large amount of bad loans. 
    Since becoming independent in 1991, Slovenia has been 
reluctant to sell major banks and companies and as a result it 
still controls about 50 percent of the economy. 
    The IMF also said Slovenia's gross domestic product is 
expected to rise by 1.9 percent in 2015 after an estimated 
expansion of 2.6 percent in 2014. That is slightly above its 
December forecast and broadly in line with the government's 
view. ID:nL6N0TW2LT  
($1 = 0.8790 euros) 
 
 (Reporting By Marja Novak; Editing by Zoran Radosavljevic and 
Susan Thomas) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805; Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA IMF/