Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

SLOVENIA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
Share
  • ShareShare
Show Summary Details

(Position as of February 28, 2005)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: September 1, 1995.
Exchange Arrangement
CurrencyThe currency of Slovenia is the Slovenian tolar.
Exchange rate structureUnitary.
Classification
Pegged exchange rate within horizontal bandsOn June 27, 2004, Slovenia adopted the ERM II with standard fluctuation bands of ±15% around a central rate of SIT 239.640 per €1. As a result, the exchange arrangement of Slovenia was reclassified to the category pegged exchange rate within horizontal bands from the category crawling band. Previously, the external value of the tolar was determined in the exchange market, where the Bank of Slovenia (BOS) could participate, and the BOS published daily a moving average exchange rate for customs valuation, statistics, and accounting purposes, as well as for government transactions.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketYes.
Arrangements for Payments and Receipts
Prescription of currency requirementsYes.
Use of foreign exchange among residentsThe use of foreign currencies to settle transactions among residents is not permitted, except: (1) the BOS may buy and sell foreign exchange in transactions with the government and commercial banks; (2) natural persons may conduct foreign exchange transactions with banks or foreign exchange offices at freely negotiated rates; (3) licensed banks may conduct foreign exchange transactions among themselves; and (4) juridical persons may conduct foreign exchange transactions with banks.
Payments arrangements
Bilateral payments arrangements
InoperativeSlovenia maintains a payments agreement with the former Yugoslav Republic of Macedonia. Effective May 1, 2004, the agreement with Italy related to cross-border trade became inoperative.
Regional arrangementsEffective May 1, 2004, Slovenia became a member of the EU. As of that date, Slovenia ceased being a member of the CEFTA.
Administration of controlExchange control is exercised by (1) the BOS on the foreign exchange operations of banks and foreign exchange offices; (2) the Foreign Exchange Inspectorate within the MOF on foreign exchange and foreign trade operations of natural and juridical persons other than banks; and (3) the customs authorities, who verify that the necessary conditions are met for cross-border transfers of goods, banknotes, securities, and gold.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)On April 13, 2004, Slovenia notified the IMF of certain exchange restrictions which have been imposed in accordance with EU regulations and the relevant UN Security Council resolutions.
In accordance with UN sanctionsIn accordance with UN Security Council resolutions, Slovenia maintains certain restrictions on and has frozen the funds and other financial resources of the Taliban and certain persons associated with the former governments of Iraq and the former Federal Republic of Yugoslavia.
In accordance with EU regulations and effective January 31, 2004, Slovenia maintains certain restrictions with regard to Myanmar and Zimbabwe.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)n.r.
Controls on exports and imports of banknotesIn accordance with the Law on the Prevention of Money Laundering, imports and exports of banknotes and securities exceeding the equivalent of SIT 3 million must be reported to the customs authorities.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyAll residents may open and operate foreign exchange accounts without restriction upon proof of identity.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedAll nonresidents may open and operate accounts without restriction upon proof of identity.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsTo implement UN resolutions and for reasons of national security, accounts pertaining to entities associated with the former government of Serbia and Montenegro are blocked. In accordance with UN resolutions, accounts are blocked with respect to the Taliban and certain persons associated with the former government of Iraq. In accordance with EU regulations, accounts are blocked with respect to Myanmar and Zimbabwe.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for imports
Import licenses and other nontariff measuresLicensing requirements in the form of permits, for the purpose of controlling items that affect security and public health, have been retained for specific groups of goods (seeds and planting materials of agricultural and forest plants, materials for breeding animals, pharmaceutical products, military equipment, waste, toxic and explosive substances, and precious metals), as well as original sculptures, statues, and antiques, in accordance with international conventions and codes.
Licenses with quotasEffective January 1, 2005, import quotas on certain steel imports from Russia, Kazakhstan, and Ukraine no longer apply. Also effective that date, with the expiration of the WTO Agreement on Textiles and Clothing, quotas on imports from 16 countries and quotas on imports of certain footwear, ceramics, and tableware from China are removed. Textile quotas remain in force for imports from Belarus, Serbia and Montenegro, and the Democratic People’s Republic of Korea. Previously, Slovenia maintained a system of import quotas applicable only to certain textile products and clothing. Annual import quotas were allocated to relevant associations of the Chamber of Commerce of Slovenia. Quotas were not applied to imports from countries with which Slovenia had free trade agreements.
Import taxes and/or tariffsEffective May 1, 2004, EU tariff rates apply. The EU simple average tariff rate for industrial goods is 4.5% while that for agricultural goods is 17.3%. Slovenia applies the EU’s Generalized System of Preferences. Previously, in accordance with the WTO schedule, the bound tariff rate for industrial and agricultural products was 27% except for some agricultural products, for which the bound tariff rate was either 45% or a tariff rate plus a specific duty. However, the conventional rate of duty currently applied was 8.76% on average for all sectors; for industry it was 7.68%; and for agriculture, 12.6%.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licensesExports are not restricted except for certain items that are subject to licensing for security or health reasons in accordance with international conventions and codes.
Without quotasYes.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instruments
On money market instrumentsEffective May 1, 2004, the BOS’s authority to impose restrictions on nonresident local investment was rescinded.
On collective investment securities
Sale or issue locally by nonresidentsEffective May 1, 2004, the following are permitted to sell investment coupons: (1) Slovene mutual funds; (2) a mutual fund from an EU member state, if the company that manages the mutual fund in that member state is authorized to sell units of the mutual fund in the Republic of Slovenia; and (3) a foreign mutual fund, if the foreign management company that manages the mutual fund has acquired the authorization of the Securities Market Agency (SMA) to establish a subsidiary and is, pursuant to the Investment Funds and Management Companies Act, authorized to sell units of this mutual fund in the Republic of Slovenia. Previously, foreign management companies could sell market investment coupons in Slovenia through either their branches or persons authorized by a foreign management company that was authorized to manage investment funds. In both cases, permission from the Surveying and Mapping Authority of the Republic of Slovenia was required to open a branch domestically.
Sale or issue abroad by residentsEffective May 1, 2004, no restrictions apply on sales of investment coupons in the EU. Domestic management companies may provide services for the management of investment funds (including marketing of investment funds and selling of investment coupons and/or investment fund shares) through either their branches or a person who has been authorized by the management company to manage investment funds. SMA permission is required for the establishment of a branch abroad.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentDirect investments by nonresidents in entities engaged in production or trade of military equipment require a government license.
Controls on liquidation of direct investmentThe transfer of proceeds is free of controls after all tax obligations in Slovenia have been met.
Controls on real estate transactions
Purchase locally by nonresidentsNo restrictions apply to EU residents. Non-EU foreigners may acquire the right to own real estate pursuant to the provisions of a law or an international agreement under the condition of reciprocity. Foreign states may also acquire the right to own real estate used for diplomatic and consular purposes under the condition of reciprocity.
Controls on personal capital transactionsNo.
Provisions specific to commercial banks and other credit institutions
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsThe required reserve ratio for deposits with up to three-month maturity is 2% for deposits in foreign exchange and 4.5% for tolar deposits. Effective February 22, 2005, for deposits with longer maturity, the reserve ratios are unified at 2% for deposits with up to two-year maturity and zero for longer maturities.
Liquid asset requirementsBanks are required to match their liquidity in two time bands by managing the ratios between their assets and liabilities and to hold the required amount of currency bills issued by the BOS. Banks calculate daily the coefficient of liquidity for each time band for domestic or foreign currency deposits separately. The coefficient of liquidity of the domestic and foreign currency–denominated positions must be at least one. In cases where a bank enters into a contract with the BOS, it may calculate the coefficients of liquidity for the tolar and foreign exchange proportions together.
Investment regulations
In banks by nonresidentsBOS approval is required for the acquisition of a qualified holding.
Provisions specific to institutional investors
Limits (max.) on investment portfolio held abroadApproval from the Insurance Supervisory Agency is required for insurance companies to invest abroad.
Currency-matching regulations on assets/liabilities compositionAn 80% currency matching requirement applies for insurance companies.
Other controls imposed by securities lawsNo.
Changes During 2004
Exchange arrangementJune 27. Slovenia entered the ERM II with standard fluctuation bands of ±15% around the central rate of SIT 239.640 per €1. As a result, the exchange arrangement of Slovenia was reclassified to the category pegged exchange rate within horizontal bands from the category crawling band.
Arrangements for payments and receiptsJanuary 31. Slovenia imposed restrictions against Myanmar and Zimbabwe.
April 13. Slovenia notified the IMF of certain exchange restrictions which have been imposed in accordance with EU regulations and the relevant UN Security Council resolutions.
May 1. An agreement on cross-border trade with Italy became inoperative.
May 1. Slovenia became a member of the EU.
May 1. Slovenia ceased membership in the CEFTA.
Imports and import paymentsMay 1. EU tariff rates began to apply in Slovenia.
Capital transactions
Controls on capital and money market instrumentsMay 1. The BOS’s authority to impose restrictions on nonresident local investment was rescinded.
May 1. Restrictions on the sale of investment coupons in the Republic of Slovenia were lifted: (1) in the case of Slovene mutual funds; (2) in the case of a mutual fund from an EU member state, whereby the management company involved was authorized to sell units of the mutual fund in the Republic of Slovenia, and (3) in the case of a foreign mutual fund, whereby the management company involved was authorized by the SMA to sell units of the mutual fund in the Republic of Slovenia
May 1. Restrictions on sales by Slovene residents of investment coupons in the EU were eliminated.
Changes During 2005
Imports and import paymentsJanuary 1. Quotas on the following imports were lifted: (1) certain steel imports from Russia, Kazakhstan, and Ukraine; (2) imports from 16 countries upon the expiration of the WTO Agreement on Textiles and Clothing; and (3) imports of certain footwear, ceramics, and tableware from China.
Capital transactions
Provisions specific to commercial banks and other credit institutionsFebruary 22. For deposits in banks with maturities exceeding three months, the reserve ratios for foreign currency and tolar deposits were unified at 2% for maturities up to two years and zero for longer maturities.

    Other Resources Citing This Publication