Slovenia probably won’t need direct aid from the European Central Bank, ECB Governing Council Member Marko Kranjec said in an interview with Delo newspaper.
“The ECB has set up new instruments, the direct monetary transaction, which I hope Slovenia won’t need,” Kranjec, who is also the Slovenian central bank governor, was quoted as saying by the Ljubljana-based newspaper.
The former Yugoslav republic, the first post-communist country to join the euro region, needs to continue to consolidate public finances and reform the labor market and the retirement system to regain its reputation of being a “credible country,” Kranjec said, according to Delo. Markets would respond “accordingly” with falling yields.
“If measures are carried through, Slovenia will be able to borrow normally and it won’t need to ask for international aid,” he said.
The government of Prime Minister Janez Jansa needs to focus on strengthening the economy if it wants to solve the banks’ worsening loan portfolios, Kranjec said in the interview.