Opinion of the European Central Bank of 15 December 2009 on the competences of Banka Slovenije related to Slovenia’s membership of the International Monetary Fund (CON/2009/100)
Date: 2009-12-15
Institutions: European Central Bank
Subjects: International Monetary Fund, Slovenia, bilateral agreement, central bank, financial stability, international monetary system, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 15 December 2009 

on the competences of Banka Slovenije related to Slovenia’s membership of the International 

Monetary Fund 

(CON/2009/100) 

Introduction and legal basis 

On 1 December 2009, the European Central Bank (ECB) received a request from the Slovenian Ministry 

of  Finance  (hereinafter  the  ‘Ministry’)  for  an  opinion  on  a  draft  Law  amending  the  Law  on  the 

membership of the Republic of Slovenia of the International Monetary Fund (hereinafter the ‘draft law’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union and the third indent of Article 2(1) of Council Decision 98/415/EC of 

29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national  authorities  regarding  draft 
legislative provisions1, as the draft law relates to Banka Slovenije. In accordance with the first sentence of 

Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted 

this opinion. 

1.   Purpose of the draft law 

The main purpose of the draft law is to amend the Law on the membership of the Republic of Slovenia of 
the International Monetary Fund2 (hereinafter the ‘Law’) to provide a legal basis for bilateral agreements 

between  Slovenia  and  the  International  Monetary  Fund  (IMF).  These  agreements  will  be  concluded  in 

line  with  the  Presidency  Conclusions  of  the  European  Council  meeting  of  19 and  20  March  2009  to 

provide additional funds for the IMF from the Member States in the context of a joint Union response to 

the  global  financial  crisis.  As  the  provision  of  such  additional  funds  to  the  IMF  is  neither  part  of  the 

regular  IMF  quota  nor  the  allocated  special  drawing  rights,  and  the  Member  States  will  provide  these 

funds  on  the  basis  of  bilateral  agreements  with  the  IMF,  new  legislation  is  needed  for  Slovenia’s 

provision  of  additional  funds  for  the  IMF’s  activities  and  to  define  the  scope  and  content  of  the 

obligations of Banka Slovenije and of the State towards the IMF. 

According to Article 2 of the draft law amending Article 7 of the Law, the State provides funds to meet 

Slovenia’s obligations to the IMF arising from the special drawing rights under the first and the second 

allocations, and Banka Slovenije provides funds to meet all Slovenia’s other obligations to the IMF (this 

1  
2  

OJ L 189, 3.7.1998, p. 42.  
Zakon  o  članstvu  Republike  Slovenije  v  Mednarodnem  denarnem  skladu,  published  in  Uradni  list  Republike  Slovenije 
Nos 2/93 and 70/98. 

 
 
 
 
                                                 
refers to Slovenia’s IMF quota and any additional payments). In order to neutralise the risks associated 

with such payments by Banka Slovenije, the State will reimburse Banka Slovenije for all non-recovered 

funds  provided  under  bilateral  agreements  with  the  IMF,  and  for  any  costs  arising  from  differences  in 

interest payments, exchange rate differences and measures taken to protect against the exchange rate risk, 

as well as any transaction costs incurred by Banka Slovenije in the fulfilment of its obligations vis-à-vis 

the  IMF.  In  addition,  the State  will  reimburse  Banka  Slovenije  for  50  %  of  the  costs  referred  to  above 

arising in connection with the payment of the quota and participation in the financial transactions plan.  

In  its  representation  in  the  IMF,  Slovenia’s  choice  of  its  Alternate  is  no  longer  limited  to  the  Deputy 

Governor  of  Banka  Slovenije.  Accordingly,  under  Article  3  of  the  draft  law  amending  Article  8  of  the 

Law, any other person duly authorised by the Governor of Banka Slovenije may act as the Alternate. 

Finally,  Article  4  of  the  draft  law  introduces  changes  to  Article  9  of  the  Law,  pursuant  to  which  the 

Slovenian Government can lay down more detailed conditions concerning rights and obligations vis-à-vis 

the IMF, taking into account the Law and the IMF’s Articles of Agreement. The draft law now proposes 

that an agreement should be made between the Ministry and Banka Slovenije stipulating the conduct of 

operations and the fulfilment of obligations arising from Slovenia’s membership in the IMF and repealing 

the Government Decision currently in force governing these issues. 

2. 

General observations  

The  ECB  reminds  the  Ministry  that  the  tasks  performed  by  Banka  Slovenije  must  comply  with  the 

monetary financing prohibition under Article 123(1) of the Treaty which prohibits, among other things, 

overdraft facilities or any other type of credit facility with the national central banks in favour of central 

governments.  However,  Article  7  of  Council  Regulation  (EC)  No  3603/93  of  13  December  1993 

specifying  definitions  for  the  application  of  the  prohibitions  referred  to  in  Articles  104  [now  123]  and 
104b(1) [now 125(1)] of the Treaty3 states that the financing by the national central banks of obligations 

falling upon the public sector vis-à-vis the IMF is not regarded as a credit facility within the meaning of 
Article 123 of the Treaty4. The payment by Banka Slovenije of the additional obligations of the State to 

the  IMF  provided  for  in  Article  2  of  the  draft  law  falls  within  the  scope  of  Article  7  of 

Regulation (EC) No 3603/93. 

3  
4  

OJ L 332, 31.12.1993, p. 1. 
It is noted that Article 25(2) of the Law on Banka Slovenije (Zakon o Banki Slovenije, published in Uradni list Republike 
Slovenije  No  72/06)  provides  that  financing  of  the  Republic  of  Slovenia’s  liabilities  to  the  IMF  is  deemed  to  be  an 
exemption from the prohibition of financing of the public sector. 

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This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 15 December 2009. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

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