OREANDA-NEWS. The EBRD Board of Directors has adopted a new strategy for Slovenia which sets out the Bank's priorities in the country for the next four years.

Slovenia's government is committed to a continuation of key reforms as outlined in its National Reform Programme. Over time, this will address excessive leverage and poor governance in the corporate sector and allow the banking sector to once again support private investment. In this regard, the comprehensive asset quality review and stress tests of eight banks set in motion a recapitalisation and restructuring of the sector that represent important progress. Together with the implementation of the privatisation strategy and consolidation of state holdings, the private sector should regain the ability to grow and underpin a recovery.

In a context of sustained reforms implementation, the EBRD stands ready to support Slovenia in tackling these long-standing transition challenges in the banking and corporate sectors and support the nascent recovery.

In the next strategy period the Bank will therefore focus on three strategic priorities:

Corporate sector restructuring, expanding the role of the private sector and promoting good corporate governance. The Bank will seek bankable opportunities to help restore financial viability of companies with sound underlying businesses. The Bank will participate in the privatisation of key enterprises currently under state control either through debt or equity financing.

Stabilising the financial sector. Progress with balance sheet restructuring and commitment to governance reform will create opportunities for providing support for the privatisation of state-controlled banks. The EBRD will also support healthy banks with medium term funding for the real sector and help build up alternative funding channels.

Supporting sustainable energy. The Bank will explore energy efficiency investment opportunities, particularly in the SME and the residential sectors. The Bank will also actively seek opportunities to identify and finance investments that would increase the capacity to generate renewable energy.

To date, the EBRD has signed a total of 68 projects in Slovenia with a net cumulative business volume of €789 million. Approximately 33 per cent of the Bank's investments are in the corporate sector, 33 per cent in financial institutions, 21 per cent in the energy sector and 13 per cent in infrastructure.