Text file: 5505.txt
author: ju_rom
downvotes: 0
end consideration date: 2014-02-26
id: '5505'
number comments: 7
number views: 1048
proposal type: Competent authority response
response: "Response from the Ministry of Finance\nThe Bank Claims Management Company\
  \ was established by the Act on Measures of the Republic of Slovenia to Strengthen\
  \ the Stability of Banks (Official Gazette of the Republic of Slovenia, No 105/12\
  \ and 63/13 - ZS-K), which was adopted at the end of 2012 with the aim of rehabilitating\
  \ the banking sector. The Bank Claims Management Company is a joint stock company\
  \ with a single-tier governance system, with a general meeting (the Government of\
  \ the Republic of Slovenia as the sole shareholder) and a seven-member board of\
  \ directors (three members are executive directors). It was entered in the court\
  \ register on 19 March 2013.\nThe Law on Measures of the Republic of Slovenia to\
  \ Strengthen the Stability of Banks provides for a number of measures, which have\
  \ different financial implications for the budget of the Republic of Slovenia, but\
  \ all of them have in common that they must be implemented in a way that will ensure\
  \ the economic use of public funds and the recovery of budgetary resources, the\
  \ promotion of credit to the non-financial sector, the provision of conditions for\
  \ the divestment of the State's equity investments in banks and the establishment\
  \ of liability for the origination of credits and investments held as impairments\
  \ in the balance sheets of the banks subject to the measures under this Law.\nThe\
  \ cost of the recovery of the banking system is based on the results of the stress\
  \ tests, which identified a shortfall in available capital relative to the capital\
  \ requirements. In addition, the bank's shareholders and holders of subordinated\
  \ financial instruments have contributed fully to covering the bank's losses in\
  \ the first place, which makes the budgetary resources needed for the recovery of\
  \ the banking system lower than they would otherwise have been.\nGiven that budgetary\
  \ resources have been allocated to the rehabilitation of the banking system, it\
  \ is worth recalling that the State budget is an important instrument at the disposal\
  \ of the Government in the implementation of a multiannual macroeconomic policy\
  \ aimed at ensuring stable public finances and fostering economic and social development.\
  \ The fundamental tasks of budgetary management are to implement the budget within\
  \ the limits and for the purposes for which it was adopted, to adapt it in a timely\
  \ and flexible manner to changing fiscal circumstances and to achieve the social\
  \ and economic objectives set in the budget.\nThe scarcity of budgetary resources\
  \ requires users to use them efficiently and economically. By doing so, they contribute\
  \ to the effective implementation of the budget. It is true that taxpayers contribute\
  \ resources to the national budget, but these resources are used to meet the needs\
  \ of the country and its population. In view of the way the State operates and the\
  \ purpose of the budget, and in order to comply with the principles of efficiency\
  \ and economy, we consider that the donation of the shares of the Bank Claims Management\
  \ Company to the taxpayers is not appropriate. The proposed solution would jeopardise\
  \ the functioning of the State budget and the related fulfilment of the planned\
  \ social and economic objectives.\nThe current legal framework obliges the company\
  \ to act with the diligence of a sound businessman in the performance of its activities,\
  \ in accordance with the principles of transparency, efficiency, economy and effectiveness.\
  \ The Ministry of Finance therefore expects the Bank Claims Management Company to\
  \ act in accordance with its objective, which is to reduce the overall cost to the\
  \ budget and to recover the value of the assets for Slovenian taxpayers to the maximum\
  \ extent possible, and to reconstruct and manage the banks and the transferred assets\
  \ in a way that maximises their value on the market and disposes of them at the\
  \ highest possible price.\nIn view of the above, the Ministry of Finance considers\
  \ that the current institutional framework, which requires the Bank Claims Management\
  \ Company to dispose of the assets efficiently and economically with the objective\
  \ of recovering the budgetary resources, is adequate and therefore does not plan\
  \ to proceed further with the proposal.\n "
response date: 2014-03-18
response due date: null
sent date: 2014-01-28
title: Management of bad debts of the BPSD
upvotes: 21
url: https://predlagam.vladi.si/predlog/5505
