Located in Southeastern Europe, Slovenia is a memberof the European Union since 2004 and of the Economic Monetary Union since 2007.
Slovenia has excellent infrastructure, a well-educated work force, and a strategic location between the Balkans and Western Europe. Main industries of Slovenian economy are ferrous metallurgy and aluminum products, lead and zinc smelting; production of electronics, trucks, automobiles, electric power equipment and machine tools.
Banking sector of Slovenia is highly concentrated and is dominated by domestic state-owned banks.
Slovenia joined the Euro Area on 1 January 2007. The preceding national currency, Slovenian tolar (SIT), was replaced by Euro.
|Nominal GDP (2016)||Nominal GDP per Capita (2016)||Real GDP Growth (2016)|
|39.8 bln EUR (+0.03%)||19 300 EUR (+0.03%)||2.5 % (2015: 2.9 %)|
According to Eurostat, nominal GDP of Slovenia in 2016 was 39.8 bln EUR.
Slovenia outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.4% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 2.5% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.
Chart 1. Real GDP Growth in Slovenia. Source: Eurostat, International Monetary Fund.
In 2016, nominal GDP per capita in Slovenia was 19 300 EUR.
Slovenia has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -15.0% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.
Chart 2. GDP Per Capita at Purchasing Power Parity in Slovenia; European Union = 100.
|CPI, MoM (Sep 2017)||CPI, YoY (Sep 2017)||CPI, Year Average (2016)|
|0.3 % (Aug 2017: 0.1 %)||1.4 % (unchanged)||-0.2 % (2015: -0.8 %)|
According to Eurostat, inflation rate in Slovenia in 2016 expressed as annual percentages of average consumer prices was -0.2% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.
Chart 3. Inflation Rate in Slovenia. Source: Eurostat, International Monetary Fund.
|Unemployment Rate (2016)|
|8.0 % (2015: 9.0 %)|
|Government Bond Yield (Sep 2017)|
|0.98 % (Aug 2017: 1.09 %)|
Chart 4. Government bond yield of Slovenia. Source: Eurostat.
|BBB+ (good credit quality), outlook positive||Baa3 (lower medium grade), outlook stable|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Slovenia signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Slovenia and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Slovenia signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Slovenia and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Slovenia signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Slovenia has signed bilateral agreements with 57 jurisdictions to automatically receive information:
Slovenia has signed bilateral agreements with 69 jurisdictions to automatically send information:
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in Slovenia|
|IGA in effect since 02 June 2014, Model 1|
Slovenia has FATCA agreement with the U.S. in effect since 02 June 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Slovenia are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Slovenian financial accounts hold in U.S. financial institutions will be reported to Slovenian authorities.
|Financial Market Development|
|3.4 (max 7.0), 106th out of 138 countries|
|4.1 (max 7.0), 104th out of 138 countries|
According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Slovenia is scored 3.4 out of maximum 7.0 and ranked 106th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 3.5 (112th place).
Chart 5. Financial Market Development in Slovenia. Source: WEF.
Soundness of banks is scored 4.1 bringing Slovenia into the 104th place.
Chart 6. Soundness of Banks in Slovenia. Source: WEF.
|Maximum Protected Amount|
|100 000 EUR|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Slovenia are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Slovenia, branches of non-EEA banks, branches of Slovenian banks abroad|
|Scheme Exemptions||branches of EEA-banks (covered by their home countries)|
|Eligible Depositors||private individuals, private individuals independently engaged in business activities, sole traders or legal entities that do not satisfy the criteria for being classed as a large or medium-size enterprise|
|Covered Accounts||current accounts, savings deposits, cash deposits, and certificates of deposit and bills|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 1. Deposit guarantee scheme in Slovenia.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Euro)||Foreign Currency|
|Aa3 (high grade)||Aa3 (high grade)|
Local currency (Euro) deposit ceiling for Slovenia is set to Aa3 (high grade), foreign currency deposit ceiling is Aa3 (high grade).
|Average Deposit Rate (Aug 2017, EUR)|
|0.11 % (unchanged)|
Chart 7. Deposit Rates in Slovenia. Source: ECB.
|Number of Banks|
|Consolidated Assets (2016)|
|40 586.66 mln EUR (+0.41%)|
|Recent Changes (2016)|
|new banks: 0, closed banks: 4|
Currently there are 19 credit institutions operating in Slovenia.
In 2016 consolidated banking assets in Slovenia were 40 586.66 mln EUR. The consolidated banking assets' evolution is shown at Chart 8 below.
Chart 8. Consolidated banking assets in Slovenia.
Recent structural changes (2013 - 2016) of the banking sector of Slovenia are summarised in Table 2.
|Number of Opened Banks||0||1||0||0|
|Number of Closed Banks||0||0||1||4|
Table 2. Recent structural changes in the banking sector of Slovenia.
The list of the most recently opened banks in Slovenia is provided in Table 3.
|Brüll Kallmus Bank AG, Bančna podružnica v Sloveniji (new)||May 2014|
Table 3. The most recently opened banks in Slovenia.
All the credit institutions operating in Slovenia can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||3|
There are 3 branches of foreign banks from 2 different countries in Slovenia. Table 5 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|