Реферат Country Study, Slovenia: Winning the Transitional Economies Race
Текст реферата Country Study, Slovenia: Winning the Transitional Economies RaceСтраница: 6 из 13
population of 2 million. The central bank was faced with the problem
of deterring speculators to avoid any kind of banking crisis. The
central bank decided to increase the amount in minimum capital
requirements for banks to $35 million. This move prevented any future
mishappenings while also pushing banks towards consolidation.
In October 1991, the Tolar was introduced. As a means of
inflationproofing, the law allowed contracts and wage agreements to be
denominated in foreign currency so no exchange was required. The
deposits in the banks were converted automatically on a onetoone basis
and 86 billion dinars of personal cash were converted within a short
period of time. The tolar’ s introduction came with ease as more
than 80 percent of household monetary savings were in foreign currency
deposits. Ibid., 1996. The Tolar’ s exchange rate quickly
stabilized due to a highly restrictive monetary policy which was aimed
at decreasing inflation, increasing stability and strengthening the
domestic currency. Chamber of Economy of Slovenia. (1996) Exchange
Rate and Monetary Policy.
1993 and 1995 the Tolar was depreciated to reflect a real exchange
rate. (See Appendix IX) This monetary policy aided in stabilizing the
Tolar and making it fully convertible. On November 19, 1996, 1USD was
equivalent to 137.69 Tolars. Exchange Rates for Companies. Banka
Slovenia. 1996. In addition, the stabilization allowed for foreign
investors to conduct business in USD, DM or Tolar.
Slovenia put tight controls on foreign currency movements in order to
maintain the stability of the tolar. Since the introduction of the
Tolar, total savings deposits have increased by over 494 billion
Tolars. Savings in 1995 accounted for 23.3 percent of GDP.
Also, Slovenia has a positive balance between the foreign debt and
exchange reserves. By August of 1996, foreign allocated debt had
reached $4.21 Billion and the exchange reserves were at $4.3 Billion.
(See Appendix X) This positive balance shows that the country’ s
economy continues to stabilize.
Furthermore, Slovenia has managed to get credit ratings higher than
those of Greece and other countries with longer histories of being
democracies and having market economies. The Economist. (1996)
"Creditable: Eastern European Finance." July 13, Vol.340, No. 7974,
p.72. As of May 1996, Slovenia had the following Country Credit
Ratings : General Information on Slovenia. Banka Slovenia. May 1996
Moody’ s Investor’ s Service A3
Standard’ s & Poor’ s A
IBCA AIn addition, according to Institutional Investors, Slovenia
ranks 47th among 135 countries, with regards to potential areas for
investment. Institutional Investor, March 1996.
Expenditure Policies and Assignments
In October 1995, the Parliament unanimously approved the 1996 draft
budget presented by Slovene Prime Minister Janez Drnovsek.
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