Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

SLOVENIA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of January 31, 2007)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: September 1, 1995.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Exchange restrictions have been imposed in accordance with EU regulations and UN Security Council resolutions.
Other security restrictionsIn accordance with relevant UN Security Council resolutions and/or EU legal acts, Slovenia maintains certain restrictions on and/or has frozen the funds and other economic resources of Al-Qaida members, the Taliban, certain persons associated with the former government of Iraq, as well as certain persons from Belarus (effective May 20, 2006), Bosnia and Herzegovina, Côte d’Ivoire, Croatia, the Democratic Republic of the Congo, Lebanon (effective February 22, 2006), Liberia, Myanmar, the former Republic of Serbia and Montenegro, Sudan, the Syrian Arab Republic (effective February 22, 2006), and Zimbabwe.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyEffective January 1, 2007, the currency of Slovenia is the euro (previously, the Slovenian tolar).
Exchange rate structureUnitary.
Classification
Independently floatingEffective July 10, 2006, the EU approved the rate of SIT 239.640 per €1 as the tolar-euro exchange rate applicable for Slovenia’s joining the euro zone. Effective January 1, 2007, Slovenia participates in a currency union (EMU) with 12 other members of the EU and has no separate legal tender. Effective January 1, 2007, the exchange arrangement of the EMU countries has been reclassified to the category of independently floating from the category of exchange arrangement with no separate legal tender. The new classification is based on the behavior of the common currency, whereas the previous classification was based on the lack of a separate legal tender. The new classification thus reflects only a definitional change, and is not based on a judgment that there has been a substantive change in the exchange regime or other policies of the currency union or its members.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketYes.
References to legal instruments and hyperlinksn.a.
Arrangements for Payments and Receipts
Prescription of currency requirements
Use of foreign exchange among residentsThe use of foreign currencies to settle transactions among residents is not permitted, except (1) the Bank of Slovenia (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. A cross-border trade agreement with Italy is inoperative.
Regional arrangementsSlovenia is a member of the EU.
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.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)n.r.
Controls on exports and imports of banknotesEffective January 1, 2007, in accordance with the Law on the Prevention of Money Laundering, imports and exports of banknotes and securities exceeding the equivalent of €12,519 (previously, the equivalent of SIT 3 million) must be reported to the customs authorities.
References to legal instruments and hyperlinkswww.gov.si/mf/angl/zakon/azakon.htm.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyAll residents may open and operate foreign exchange accounts without restriction on proof of identity.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
References to legal instruments and hyperlinkswww.gov.si/mf/angl/zakon/azakon.htm.
Nonresident Accounts
Foreign exchange accounts permittedAll nonresidents may open and operate accounts without restriction on proof of identity.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsIn accordance with UN Security Council resolutions and relevant EU legal acts, Slovenia maintains certain restrictions on and/or has frozen the funds and other economic resources of Al-Qaida members, the Taliban, certain persons associated with the former government of Iraq, as well as certain persons from Belarus (effective May 20, 2006), Bosnia and Herzegovina, Côte d’Ivoire, Croatia, the Democratic Republic of the Congo, Lebanon (effective February 22, 2006), Liberia, Myanmar, the former Republic of Serbia and Montenegro, Sudan, the Syrian Arab Republic (effective February 22, 2006), and Zimbabwe.
References to legal instruments and hyperlinksCouncil Regulation (EC) No. 1763/2004 (OJ L 315, 14.10.2004, p. 14); http://europa.eu.int/eur-lex/pri/en/oj/dat/2004/l_315/l_31520041014en00140023.pdf; Council Regulation (EC) No. 1183/2005 (OJ L 193, 23.7.2005, p. 1); http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_193/l_19320050723en00010008.pdf; Council Regulation (EC) No. 560/2005 (OJ L 95, 14.4.2005, p. 1); http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_095/l_09520050414en00010008.pdf; Council Regulation (EC) No. 1210/2003 (OJ L 169, 8.7.2003, p. 6); http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_169/l_16920030708en00060023.pdf; Council Regulation (EC) No. 872/2004 (OJ L 162, 30.4.2004, p. 32); http://europa.eu.int/eur-lex/pri/en/oj/dat/2004/l_162/l_16220040430en00320037.pdf; Council Regulation (EC) No 817/2006 (OJ L 148, 2.6.2006, p. 1); http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:148:0001:0029:EN:PDF; Council Regulation (EC) No. 1184/2005 (OJ L 193, 23.7.2005, p. 9); http://europa.eu.int/eur-lex/lex/LexUriServ/site/en/oj/2005/l_193/l_19320050723en00090016.pdf; Council Regulation (EC) No. 881/2002 (OJ L 139, 29.5.2002, p. 9); http://europa.eu.int/eur-lex/pri/en/oj/dat/2002/l_139/l_13920020529en00090022.pdf; Council Regulation (EC) No. 2580/2001 (OJ L 344, 28.12.2001, p. 70); http://europa.eu.int/eur-lex/pri/en/oj/dat/2001/l_344/l_34420011228en00700075.pdf; Council Regulation (EC) No. 314/2004 (OJ L 55, 24.2.2004, p. 1); http://europa.eu.int/eur-lex/pri/en/oj/dat/2004/l_055/l_05520040224en00010013.pdf; The Foreign Exchange Act; www.gov.si/mf/slov/di/zakonodaja.htm; Council Regulation (EC) No. 765/2006 (OJ L 134, 20.5.2006, p. 1); http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:134:0001:0011:EN:PDF; Act Relating to Restrictive Measures Introduced or Implemented in Compliance with Legal Instruments and Decisions Adopted within International Organizations; http://www.uradni-list.si/_pdf/2006/Ur/u2006127.pdf; Payment Transactions Act; www.gov.si/mf/slov/fin_sist/predpisi.htm#placilni_promet.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
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 quotasSlovenia, as a member of the EU, maintains a system of import quotas applicable to certain steel products from Kazakhstan, the Russian Federation, and Ukraine. Quotas on textile and clothing products have been lifted on imports of textiles and clothing products from WTO countries, except for China. On the basis of a memorandum of understanding between the EU and China, quotas are in force for 10 categories of textiles and clothing originating from China until the end of 2007. Textile and clothing quotas are also in force for imports of different categories from non-WTO member countries: currently, Belarus, the Democratic People’s Republic of Korea, Kosovo, and the Republic of Montenegro. Import authorizations are issued by the Customs Office on the approval of the European Commission that the quotas are still available.
Import taxes and/or tariffsBesides MFN treatment, the EU has numerous preferential trade agreements or arrangements. The least developed countries and ACP countries are granted the most beneficial treatment based on the General System of Preferences and the Cotonou Agreement, respectively, although regional trade agreements are also widely used.
State import monopolyNo.
References to legal instruments and hyperlinksThe relevant EU regulations apply.
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.
References to legal instruments and hyperlinksThe relevant EU regulations apply.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsNo.
Controls on capital and money market instruments
On collective investment securities
Sale or issue locally by nonresidentsThe following may 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.
Sale or issue abroad by residentsNo 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 (Foreign Exchange Act, Article 22).
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 nonresidentsForeigners may acquire the right to own real estate pursuant to the provisions of a law or an international agreement that has been ratified by the national assembly. No restrictions apply to EU residents. 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.
References to legal instruments and hyperlinksThe Constitution of the Republic of Slovenia: www.us-rs.si/en/index.php?sv_path=6,17; The Securities Market Act: www.gov.si/mf/slov/fin_sist/predpisi.htm#fin_instrumenti; Payment Transactions Act: www.gov.si/mf/slov/fin_sist/predpisi.htm#placilni_promet; The Law on Banking: www.gov.si/mf/slov/fin_sist/predpisi.htm#Banka; The Foreign Exchange Act: www.gov.si/mf/slov/di/zakonodaja.htm.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsThe required reserve ratios for deposits in foreign currency and in euros (effective January 1, 2007, previously tolars) are unified at 2% for deposits with a maturity up to two years, and zero for longer maturities.
Investment regulations
Abroad by banksPrior to acquiring a qualifying holding in another bank or another financial organization with a head office outside Slovenia and outside EU member states, a bank must notify the BOS in writing of the intent to acquire (at least three months before acquisition) (Article 196 of the Banking Act).
In banks by nonresidentsBOS approval is required for the acquisition of a qualified holding (Article 45 of the Banking Act).
Provisions specific to institutional investors
Insurance companies
Limits (max.) on investment portfolio held abroadInsurance undertakings may invest cover assets in the whole territory of signatory states of the EEA Agreement. Insurance undertakings may, in connection with insurance to cover risks in the territory of a state that is not a signatory of the EEA Agreement, invest cover assets in the territory of such state. With the approval of the Insurance Supervisory Agency, investments in other countries are also allowed (Article 121 of the Insurance Act).
Currency-matching regulations on assets/liabilities compositionAn 80% currency matching requirement applies for insurance companies.
References to legal instruments and hyperlinksThe Banking Act: www.gov.si/mf/slov/fin_sist/predpisi.htm#Banka; Bank of Slovenia Act: www.gov.si/mf/slov/fin_sist/predpisi.htm#Banka; Insurance Act: www.gov.si/mf/slov/fin_sist/predpisi.htm#Zavarovalnistvo.
Changes during 2006
Exchange measuresFebruary 22. Freezing of funds and economic resources was introduced by relevant EU regulations in accordance with UN Security Council resolutions for certain persons from Lebanon and the Syrian Arab Republic.



May 20. Freezing of funds and economic resources was introduced by relevant EU regulations for certain persons from Belarus.
Exchange arrangementJuly 10. The EU approved the rate of SIT 239.640 per €1 as the tolar-euro exchange rate applicable for Slovenia’s joining the euro area.
Nonresident accountsFebruary 22. Freezing of funds and economic resources was introduced by relevant EU regulations in accordance with UN Security Council resolutions for certain persons from Lebanon and the Syrian Arab Republic.



May 20. Freezing of funds and economic resources was introduced by relevant EU regulations for certain persons from Belarus.
Changes during 2007
Exchange arrangementJanuary 1. Slovenia participates in a currency union (EMU) with 12 other members of the EU: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.



January 1. The exchange arrangement of the EMU countries was reclassified to the category independently floating from the category exchange arrangement with no separate legal tender. The new classification reflects only a definitional change.



January 1. Slovenia adopted the euro as its official currency.
Arrangements for payments and receiptsJanuary 1. In accordance with the Law on the Prevention of Money Laundering, imports and exports of banknotes and securities exceeding the equivalent of €12,519 (previously, the equivalent of SIT 3 million) must be reported to the customs authorities.
Provisions specific to the financial sector
Provisions specific to commercial banks and other credit institutionsJanuary 1. The required reserve ratios for deposits in foreign currency and in euros (previously, tolars) were unified at 2% for deposits with a maturity up to two years, and zero for longer maturities.

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