Slovenia puts the central bank under close supervision

Banka Slovenje

Slovenia took step towards putting the independent central bank under limited surveillance. The authorities in the country blame the bank for demanding too much state capital for local creditors to avoid a potential crisis four years ago. The government approved changes to a draft law that would allow the Court of Auditors, the state body overseeing the public spending of the country, to monitor the business of the Bank of Slovenia.

“The bank would remain independent, but the National Audit Office would now be able to revise decisions that lead to spending state money”, said the state secretary at the Treasury Tilen Bozic.

The amendments to the law expected will be adopted by Parliament in the coming months and will also allow the Court of Auditors to review the central bank’s decisions over the past 10 years.

“However, the National Audit Office will not be able to oversee the monetary policy and activities of the Bank of Slovenia, which are part of the activities of the European system of central banks”, said also Bozic.

Slovenia has been a member of the Eurozone since 2007.

Last year, the police in Slovenia seized central bank documents for an investigation into the banking reform in 2013, which angered the European Central Bank (ECB) and the authorities in Brussels because of the institution’s compromised independence.


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