Methodological Notes

Institutional sectors and financial instruments according to the methodology of the European system of accounts (ESA 2010)

Institutional sectors

Business entities are classified into institutional sectors in accordance with the standard classification of institutional sectors under the ESA 2010 methodology. Resident institutional units are combined into five institutional sectors: non-financial corporations (S.11), financial corporations (S.12), general government (S.13) households (S.14) and non-profit institutions serving households (S.15). The rest of the world (S.2) represents the group of non-resident units vis-à-vis which resident units hold claims or liabilities.

Overview of institutional sectors and sub-sectors:

The Slovenian economy (S.1) consists of resident institutional units.

Non-financial corporations (S.11) are market producers whose core business activity is the production of marketable goods and non-financial services.

The central bank (S.121) is Banka Slovenije.

Other monetary financial institutions (S.122+S.123) include commercial banks, savings banks and money-market funds.

Non-MMF investment funds (S.124) comprise:

• mutual funds;

• investment companies;

• management companies.

Other financial intermediaries, except insurance corporations and pension funds (S.125) comprise:

• financial vehicle corporations engaged in securitisation transactions;

• security and derivative dealers;

• financial corporations engaged in lending;

• specialised financial corporations.

Financial auxiliaries (S.126) include:

• brokerage houses;

• currency exchange offices;

• corporations providing financial markets infrastructure (e.g. Central Securities Clearing Corporation);

• stock exchanges (e.g. Ljubljana Stock Exchange);

• head offices.

Captive financial institutions and money lenders (S.127) are:

• holding companies;

• special-purpose entities;

• units that provide financial services exclusively with own funds, or funds provided by a sponsor;

• special-purpose government funds.

Insurance corporations (S.128) include:

• insurance corporations;

• reinsurance corporations.

Pension funds (S.129) comprise:

• mutual pension funds;

• pension companies.

Central government (S.1311) comprises:

• direct state budget spending units (non-governmental, governmental and judicial spending units);

• indirect budget spending units (public institutes and agencies) at national level;

• public funds at national level;

• corporations included in S.1311.

Local government (S.1313) represents:

• municipalities;

• regional authorities;

• public funds at municipal level;

• indirect budget spending units at local level;

• corporations included in S.1313.

Social security funds (S.1314) comprise:

• the Health Insurance Institute;

• the Pension and Disability Insurance Institute;

• Pension Fund Management.

The households sector (S.14) consists of private individuals and sole traders.

Non-profit institutions serving households (S.15) include societies, political parties, trade unions, clubs, associations, religious communities and humanitarian organisations.

The rest of the world (S.2) consists of non-resident units, and is divided into EU Member States (S.21) and non-EU countries (S.22). EU Member States are divided into members of the euro area (S.2111) and other EU Member States (S.2112).

Financial instruments

The stocks and flows of financial assets and liabilities are disclosed by individual financial instrument, and are equal on both the asset and liability sides. They are classified into eight categories: monetary gold and special drawing rights (F.1), currency and deposits (F.2), debt securities (F.3), loans (F.4), equity and investment fund shares or units (F.5), insurance, pension and standardised guarantee schemes (F.6), financial derivatives and employee stock options (F.7) and other accounts receivable/payable (F.8). Each individual financial instrument that a particular unit holds as a financial asset has a counterpart item in the liabilities of another unit, and vice-versa.

Overview of financial instruments:

Monetary gold and special drawing rights (F.1) comprise:

• monetary gold (F.11), which is gold to which monetary authorities have title and that is held in reserve assets. Gold bullion included in monetary gold is the only financial asset for which there is no counterpart liability;

• special drawing rights (F.12), which are international reserve assets created by the International Monetary Fund and allocated to its members to supplement existing reserve assets. Special drawing rights are held exclusively by official holders, which are central banks and certain international agencies.

Currency and deposits (F.2) comprise:

• currency (F.21), which consists of banknotes and coins of national and foreign currency in circulation that are issued by monetary authorities;

• transferable deposits (F.22), which consist of sight deposits in domestic or foreign currency. Transferable deposits are deposits exchangeable for currency on demand, at par, which are directly usable for making payments without penalty or restriction;

• other deposits (F.29), which are deposits in domestic or foreign currency that cannot be used to make payments except on maturity or after an agreed period of notice, and are not exchangeable for currency or for transferable deposits without some significant restriction or penalty.

Debt securities (F.3) are negotiable financial instruments serving as evidence of debt, and include:

• short-term debt securities (F.31) with an original maturity of up to one year;

• long-term debt securities (F.32) with an original maturity of more than one year.

Loans (F.4) are an unconditional debt to the creditor that has to be repaid at maturity and is interest-bearing, and which can be divided into:

• short-term loans (F.41) with an original maturity of up to one year;

• long-term loans (F.42) with an original maturity of more than one year.

Equity and investment fund shares or units (F.5) comprise:

Equity (F.51), which is a claim on the residual value of a corporation after all other claims have been met, and is divided into:

• listed shares (F.511);

• unlisted shares (F.512);

• other equity (F.519), which is all forms of equity in corporations that are not shares.

Investment fund shares or units (F.52).

Insurance, pension and standardised guarantee schemes (F.6) comprise:

• non-life insurance technical reserves (F.61), which are financial claims that non-life insurance policyholders have against non-life insurance corporations in respect of unearned premiums and claims incurred;

• life insurance and annuity entitlements (F.62), which are financial claims that life insurance policyholders and beneficiaries of annuities have against corporations providing life insurance;

• pension entitlements (F.63), which are financial claims that pension insurance policyholders and beneficiaries hold against insurance corporations and pension funds;

• claims of pension funds on pension managers (F.64);

• entitlements to non-pension benefits (F.65);

• provisions for calls under standardised guarantees (F.66).

Financial derivatives and employee stock options (F.7).

Other accounts receivable/payable (F.8) are financial assets and liabilities created as counterparts to transactions where there is a timing difference between these transactions and the corresponding payments, and are divided into:

• trade credits and advances (F.81), which arise from the direct extension of credit by the suppliers of goods and services, and prepayments by customers for goods and services not yet provided;

• other accounts receivable/payable, excluding trade credits and advances (F.89), which are created as a result of the timing difference between accrued transactions and payments made in respect of, for example, wages and salaries, taxes and social contributions, dividends, rent, and purchase and sale of securities.

Current account items

The current account consists of flows in goods, services, primary and secondary income.

Goods

Component of goods covers moveable goods for which a change of ownership occurs between residents and non-residents. It comprises general merchandise, net exports of goods under merchanting and non-monetary gold.

General merchandise on a balance of payments basis covers goods for which a change of economic ownership occurs between a resident and a non-resident and that are not included in other specific categories, such as goods under merchanting and non-monetary gold.

Data regarding general goods are obtained from the Statistical Office of the Republic of Slovenia (SORS). Prior to Slovenia’s accession to the EU data were available from standard customs documents. Since 1 May 2004, data are available from single administrative documents for trade in goods with non-EU countries and from Intrastat reports for trade with EU Member States.

Adjustments of CIF/FOB – data on import by CIF value are adjusted to FOB value with the help on the basis of a coefficient which is equal to the weighted average of coefficients between CIF and FOB values of the goods imported (in an available sample).

Coverage adjustments include data for goods exported and imported without customs declarations (the ITRS source until 2007, the reports of duty free shops and consignment warehouses until 2005, BST reports as source from 2008 onwards). Since 1 May 2004, coverage adjustments also include estimated data on imports of motor vehicles from EU by natural persons not covered by Intrastat System. Included are also estimates of fuel purchase in Slovenia by foreign carriers (from 2008 on) and estimates of import of drugs (source SORS).

Net exports of goods under merchanting is defined as the purchase of goods by a resident (of the compiling economy) from a non-resident, combined with the subsequent resale of the same goods to another non-resident without the goods being present in the compiling economy. Net exports of goods under merchanting represent the difference between sales over purchases of goods for merchanting. This item includes merchants' margins, holding gains and losses, and changes in inventories of goods under merchanting.

Non-monetary gold presents all gold other than monetary gold. Monetary gold is owned by monetary authorities and held as a reserve asset.

Services

Services are the result of a production activity that changes the conditions of the consuming units, or facilitates the exchange of products or financial assets. Services are not generally separate items over which ownership rights can be established and cannot generally be separated from their production.

Manufacturing services on physical inputs owned by others covers processing, assembly, labelling, packing, and so forth, undertaken by enterprises that do not own the goods concerned. The manufacturing is undertaken by an entity that receives a fee from the owner.

Maintenance and repair services not included elsewhere comprise maintenance and repair work by residents on goods that are owned by non-residents (and vice versa). The repairs may be performed at the site of the repairer or elsewhere. The value of maintenance and repairs includes any parts or materials supplied by the repairer and included in the charges.

Transport is the process of carriage of people and objects from one location to another, as well as related supporting and auxiliary services. Transport also includes postal and courier services. Transport services are recorded in balance of payments when provided by residents of one economy for the benefit of those of another. Transport services are in the first place divided on the basis of the type of transport (for instance: sea transport) and further by the subject of transport (passenger, freight, other).

Travel as a service covers goods and services for own use, or to give away, acquired from an economy by non-residents during visits to that economy.

Methodology for including travel data:

• methodology until 2004: The ITRS sources used in the compilation of the “Incoming travel” category include: a.) health and education-related services; b.) payments made by non-residents to Slovenian tourist agencies; c.) net withdrawals in tolars from non-resident accounts; d.) money spent in casinos by non-residents; e.) data on sales of goods to non-residents in duty-free shops and consignment warehouses; f.) payments with credit cards; and g.) sales of tolars to non-residents abroad. The data on sales of tolars to non-residents in Slovenia are estimated based on the number of border crossings by foreign travellers and on the number of nights spent in the country by foreign tourists. Data for the category “Expenditure on travel” come from the ITRS and estimations.

• since 2005 onwards:

Main data sources to estimate the export of travel are the following surveys and researches conducted by Statistical Office of the Republic of Slovenia (SORS):

• Survey on foreign tourists is used to define the structure of foreign tourists according to their primary aim of travel (business travel, health care, education, other) and expenditures of each type of foreign tourists.

• Survey on foreign travellers (to define the structure of travellers broken down by same-day travellers and transit travellers and their respective expenditures).

• Arrivals and over-night stays of foreign tourists broken down by countries of their residency (monthly survey).

• Number of border crossings (to define the population of foreigners entering Slovenia).

Based on data sources and correction with price indexes the following six categories of data are calculated and finally broken down by countries using data on mobile phone operators;

• Business travel,

• Health - related travel,

• Education,

• Other,

• Same-day travellers,

• Transit travellers.

Main data source to estimate the import of travel is SORS's survey TU_ČAP (Quarterly survey on travel of domestic citizens). The Survey provides the value of expenditures of domestic population travelling abroad (same-day trips and longer trips) and the amount spent for transportation to and from the foreign destination, which is then subtracted from total expenditures in order to avoid double counting (since it is already included in transport services). Additional sources for the estimation of one-day travellers are the number of border crossings (crossings of residents of Slovenia) and bilateral data from neighbouring countries.

Based on TU_ČAP data source the following five categories of data are calculated and finally broken down by countries using data on mobile phone operators;

• Business travel,

• Health - related travel,

• Education,

• Other,

• Same-day travellers.

Construction comprises the creation, renovation, repair or extension of fixed assets in the form of buildings, land improvements of an engineering nature and other engineering constructions (including roads, bridges, dams, etc.). It includes related installation and assembly work, site preparation and general construction, specialised services such as painting, plumbing and demolition, and management of construction projects.

Insurance and pension services cover the provision of various types of insurance to non-residents by resident insurance enterprises, and vice versa. These services are estimated or valued by the service charges included in total premiums rather than by the total value of the premiums. They cover direct insurance, reinsurance, auxiliary insurance services, pension and standardised guarantee services. Direct insurance is further divided into life insurance, freight insurance and other direct insurance.

Premiums on life and non-life insurance are split into two components: (i) the service charge included in insurance services; and (ii) the premium in a narrow sense, recorded as a current transfer. Insurance services include commissions of insurance companies and of premium payments (until 2007 25%, from 2008 on 45%). Insurance claims and other part of nonlife insurance premiums are included in primary income, claims and part of life insurance premiums represent assets/liabilities of financial account.

Financial services cover intermediary and auxiliary services, except insurance and pension fund services, usually provided by banks and other financial corporations.

• Explicitly charged and other financial services: Services are charged for by explicit charges in the case of many financial services and require no special calculation. They include fees for deposit-taking and lending, fees for one-off guarantees, early or late repayment fees or penalties, account charges, fees related to letters of credit, credit card services, commissions and charges related to financial leasing, factoring, underwriting, and clearing of payments. Also included are financial advisory services, custody of financial assets or bullion, financial asset management, monitoring services, liquidity provision services, risk assumption services (other than insurance), merger and acquisition services, credit rating services, stock exchange services and trust services.

• Financial intermediation services indirectly measured (FISIM): Lenders and deposit-takers operate by providing rates of interest to their depositors that are lower than the rates that they charge to their borrowers. The resulting interest margins are used by the financial corporations to defray their expenses and to provide an operating surplus.

Charges for the use of intellectual property include charges for the use of proprietary rights (such as patents, trademarks, copyrights, industrial processes and designs including trade secrets and franchises), and charges for licences to reproduce or distribute intellectual property embodied in produced originals or prototypes (such as copyrights on books and manuscripts, computer software, cinematographic works, and sound recordings) and related rights (such as for live performances and television, cable, or satellite broadcast).

Telecommunication, computer and information services: Telecommunications services encompass the transmission of sound, images or other information by telephone, telex, telegram, radio and television cable and broadcasting, satellite, electronic mail, included are services of mobile telephone network, main internet services and provision of access to the internet. Computer services consist of hardware and/or software-related services, and data-processing services; Information services comprise news agency services, database conception, data storage and the dissemination of data and databases, both online and through magnetic, optical or printed media.

Other business services include:

• Research and development services consist of services that are associated with by research in the physical sciences, social sciences, and also commercial research related to electronics, pharmaceuticals and biotechnology;

• Professional and management consulting services include: legal services, accounting, management consulting, managerial services and public relations services; and advertising, market research, and public opinion polling services;

• Technical, trade-related, and other business services comprise: architectural, engineering, scientific and other technical services; waste treatment and de-pollution, agricultural and mining services; operating leasing services; trade-related services; and other business services.

Personal, cultural and recreational services include audiovisual and related services, and other personal, cultural and recreational services. Audiovisual and related services are services and associated fees related to the production of motion pictures radio and television programmes and musical recordings. Other personal, cultural and recreational services are education services, health services, heritage and recreational services and other personal services.

Government goods and services not included elsewhere: this is a residual category covering government transactions (including those of international organisations) in goods and services that it is not possible to classify under other items.

Primary income

Primary income represents the return that accrues to institutional units for their contribution to the production process, or for the provision of financial assets or from renting natural resources to other institutional units. It comprises compensation of employees, investment income and other primary income.

Compensation of employees is recorded when the employer (the producing unit) and the employee are residents of different economies. For the economy where the producing units are residents, compensation of employees is the total remuneration (including contributions paid by employers to social security schemes or to private insurance or pension funds), in cash or in kind, payable by resident enterprises to non-resident employees in return for work done by the latter during the accounting period. For the economy where the individuals are residents, compensation is the total remuneration, in cash or in kind, receivable by them from non-resident enterprises in return for work done during the accounting period.

Sources for Compensation of employees (Labour income):

• Receipts: Since 2002, data from the Labour Force Survey (SORS) and Eurostat data have replaced ITRS and estimates as sources of labour income for the work of Slovene residents abroad.

• Expenditures: ITRS is the source for labour income - expenditures until 2004. Data relating to 2005 onwards are provided by SORS on the basis of Labour Office register for the number of non-residents, who at the end of each quarter possess valid work permits and who actually worked in Slovenia less than one year and data by The Health Insurance Institute of Slovenia for non-residents, who at the end of each quarter do not need valid work permits and who actually worked in Slovenia less than one year. Data on daily migrant workers from Austria, Italy, Hungary and Croatia are also included. Since 2002, labour income (receipts and expenditures) is included according to the gross principle (including taxes and social contributions).

Investment income is derived from an ownership of financial asset. Investment income includes income on equity (dividends, withdrawals from income of quasi-corporations, reinvested earnings) and on debt (interest), and investment income attributable to policyholders in insurance, pension schemes and standardised guarantee schemes. In balance of payments, investment income is also classified according to the function of the underlying investment, as direct investment, portfolio investment, other investment or reserve assets, and are further detailed according to the type of investment.

From 01.01.2007 (beginning of Slovenia's membership in EMU) the investment income (in other investments) also includes the remuneration of intra-Eurosystem technical claims, introduced in March 2015.

Since 2004, VRP reports have replaced ITRS as a source for income from equity securities. Annual reports on capital investments are the source for data regarding reinvested earnings. Data on reinvested earnings in the current year are estimated - a three-year monthly average of actual data on total earnings, less extraordinary incomes (the source being annual reports on investments), is decreased by dividends and other profits, paid in the current month (the source being monthly reports on investments from 1.1.2008 onwards, previously the source was ITRS). The estimate is replaced by actual data only when these data are available. Data on disproportionally large exceptional payments of profits relative to the recent level of dividends and earnings (superdividends) are excluded from income and included in direct investment as withdrawals of equity (from 2008 onwards). Until 2003, the source of income from debt securities was ITRS; since 2004 the sources are reports on securities transactions (VRP reports) and KDD data. Until 2004, the source on income from other investments was ITRS for the banking sector; the source was later changed to reports on monetary financial institutions (PORFI). Until 2006, the source on income from other investments for the non-banking sector was ITRS; since 2007, the source is KDD reporting. Income from loans (including long-term trade credits) and reserve assets have been managed according to the accrual principle since 2002. Since 2007, total income from other investments is managed according to the same principle. Since 2004, the accrual principle is used for income from bonds and notes.

Other primary income is divided into two components: taxes on production and imports, subsidies and rents.

Secondary income

The secondary income account shows current transfers between residents and non-residents. A transfer is an entry that corresponds to the provision of a good, service, financial asset or other non-produced asset by an institutional unit to another institutional unit where there is no corresponding return of an item of economic value. Current transfers consist of all transfers that are not capital transfers.

General government current transfers comprise current taxes on income, wealth, etc., social contributions, social benefits, current international cooperation, miscellaneous current transfers, VAT and GNI-based EU own resources.

Other sectors current transfers comprise current taxes on income, wealth, etc., social contributions, social benefits, miscellaneous current transfers, net non-life insurance premiums, non-life insurance claims and adjustments for the changes in pension entitlements. Miscellaneous current transfers include personal transfers between resident and non-resident households (of which workers' remittances).

The main data sources are the ITRS and estimates until 2007, from 2008 onwards the sources are BST reports, and from 2004 onwards, data on EU transfers of the government sector are obtained directly from the Ministry of Finance (budget data). Migrants' transfers - outflows and inflows (data provided by foreign central banks) and transfers of households (SORS survey) are included from 2008 onwards.

Capital account items

The capital account covers the acquisition/disposal of non-produced non-financial assets and capital transfers.

Non-produced, non-financial assets consist of: natural resources; contracts, leases and licences; marketing assets (brand names, trademarks) and goodwill. Only the purchase/sale of such assets, but not their use, is to be recorded in this item of the capital account. This item also includes data on purchases and sales of emission allowances.

Capital transfers consist of transfers of ownership of fixed assets; transfers of funds linked to, or conditional on, the acquisition or disposal of fixed assets; and the cancellation, without any consideration being received in return, of liabilities by creditors. Capital transfers may be in cash or in kind (such as debt forgiveness). The distinction between current and capital transfers, in practice, rests in the use of the transfer by the recipient country.

Capital transfers comprise capital taxes, investment grants, debt forgiveness and other capital transfers. The ITRS is the source of data until 2007. From 2008 onwards data are obtained from BST reports, but data on capital transfers between the Republic of Slovenia and the EU are from 2004 onwards obtained directly from the Ministry of Finance (budget data). Since 2002, Banka Slovenije also estimates the value of write-downs of debt from trade in goods and services abroad. From 2008 onwards, there are also included data on assets acquired directly by tenders and programs of EU (SORS, Annual survey on investment in tangible assets).

Balance of Payments financial account and International Investment Position items

Direct investment

Direct investments are a form of cross-border investment by a resident of one economy in another economy with the objective of establishing a lasting interest and influencing the management of the affiliated company.

The criterion for classification as a direct investment, which ensures the international comparability of data, is participation of at least 10% in equity or voting rights; a criterion of 10% of equity has been applied in the compilation of the figures for Slovenia.

Direct investors may be individuals, companies, groups of individuals or companies, and governments or government agencies that hold direct investments in companies in the rest of the world.

Direct investments comprise equity, reinvested earnings and debt instruments between direct and indirect affiliates and between fellow enterprises. Income from direct investments is also disclosed, in the part relating to equity (profit distributions and reinvested earnings), and in the part relating to debt instruments (interest).

Contributions to equity may be in the form of cash, non-cash contributions or reinvested earnings. The figures for investments in real estate are included under equity.

Payments of disproportionately high dividends or profit distributions have since 2008 been treated as withdrawals of equity, and not as dividend payments.

The figures for transactions in direct investment equity have been compiled at market value, while the figures for the stock of investments are valued at book value in accordance with the equity method. Investments in listed joint-stock companies have been an exception since 2007: the corresponding stock of investment is stated at market value. The figures for debt instruments are stated at nominal value.

Debt instruments comprise assets and liabilities between affiliates and fellow enterprises, and include financial loans, trade credits, deposits, and other assets and liabilities. Debt instruments between affiliated financial intermediaries (between domestic and foreign S.122, S.123, S.124 and S.125 sectors) are not included in direct investments, they are included in 'other investment' functional category. Due to non-existence or statistical insignificance of data on debt securities between affiliated and fellow enterprises are not included in direct investment – they are included in 'portfolio investment' functional category.

FDI amounts do not include:

• the value of assets in respect of other successors in the territory of the former Socialist Federal Republic of Yugoslavia that are still subject to succession negotiations, seized assets in these territories, and other assets whose ownership was transferred from legal entities to the state during the privatisation process,

• the value of real estate in the rest of the world owned by households (primarily investments in Croatia) before 2007,

• the value of real estate in Slovenia owned by foreign residents (before 2008).

Additional data on direct investment are available in a special publication of Banka Slovenije: “Neposredne naložbe – Direct Investment”on Banka Slovenije Website: https://www.bsi.si/en/publications/statistical-reports/direct-investment

Portfolio investment

Portfolio investment includes transactions and positions involving debt or equity securities, other than those included in direct investment or reserve assets. Portfolio investment includes equity securities, investment fund shares and debt securities, unless they are categorised either as direct investment or as reserve assets.

Equity securities consist of listed and unlisted shares.

Transactions and positions in debt securities are divided by original maturity into short-term and long-term. Short-term debt securities are payable on demand or issued with an initial maturity of one year or less. Long-term debt securities are issued with an initial maturity of more than one year. Since 2007 this item includes also assets of debt portfolio instruments held by Banka Slovenije, which are no longer considered as international reserves, but as claims to EMU member states and claims in EUR currency to all other non-residents.

Financial derivatives

A financial derivative contract is a financial instrument that is linked to another specific financial instrument or indicator or commodity and through which specific financial risks (such as interest rate risk, foreign exchange risk, equity and commodity price risks, credit risk, and so on) can be traded in their own right in financial markets.

From 2004 until 2006 these types of transactions are included in VRP and KDD sources. Since 2007 quarterly data on financial account's statistics are source for financial derivatives for all sectors except the central bank. From 2009 onwards financial derivatives of Banka Slovenije are included in financial derivatives item or reserve assets item (depending on the residency of the counterpart). For financial derivatives of banks from 2011 onwards the data source is PORFI.

Other investment

Other investment is a category that includes positions and transactions other than those included in direct investment, portfolio investment, financial derivatives and employee stock options or reserve assets. Other investment includes: (a) Other equity; (b) Currency and deposits; (c) Loans (including use of IMF credit and loans from the IMF); (d) Insurance, pension and standardised guarantee schemes; (e) Trade credits and advances; (f) Other accounts receivable/payable; and (g) SDR allocations (SDR holdings are included in reserve assets).

Other equity includes mainly participation in the capital of some international organisations, which is not in the form of securities.

Currency and deposits include currency in circulation and deposits. Deposits are standardised, non-negotiable contracts generally offered by deposit-taking institutions, allowing the placement and the later withdrawal of a variable amount of money by the creditor. Deposits usually involve a guarantee by the debtor to return the principal amount to the investor.

Net position of Banka Slovenije to the Eurosystem (net result of incoming and outgoing payments conducted in EUR currency through TARGET and STEP2 system) is also included in the item currency and deposits on the asset side (in case of positive balance) or liability side (in case of negative balance).

The international investment position includes data of the Bank for International Settlements (BIS) on deposits of domestic households at BIS Member State banks. Since 2001, an estimate of the stock of foreign currency held by households at home is also included. However, any further investments of foreign currencies (primarily investments in real estate abroad and foreign securities, without domestic brokers) are not excluded from this estimate, since data of this type are not available.

Currency and deposit transactions of households

Until the adoption of Euro currency (1 January 2007) the foreign currency of residents is estimated based on the following formula:

+ deposited currency and cheques on foreign currency accounts of individuals - withdrawals of cash and cheques from foreign currency accounts of individuals + the estimated net purchase of foreign currency by residents + estimated expenditures for tourist travel abroad + estimated expenditures of tourist travel to the former Yugoslavia + the estimated purchase of goods abroad - estimated labour expenditures abroad - estimated Italian pensions (until the end of 1998) + net withdrawals from non-resident accounts in local currency + the change of deposit balances of residents on accounts at BIS Member State banks (before 2002).

Since March 2015 all Member States of EMU are bound to record transactions and positions of euro currency by non-residents in a new recording convention. For Slovenia this new convention is used since 01.01.2007 (beginning of Slovenia's membership in EMU) reflected in:

• the item of assets in currency and deposits of the central bank which includes Intra-Eurosystem technical claims, as the difference between the legal issuance of euro banknotes (BAK allocation - banknotes according to the capital key belonging to Slovenia) and amount of euro banknotes actually issued by the central bank;

• the item liabilities from cash and deposits of the central bank which includes net liabilities in respect of the export of cash, as the difference between the legal issuance of euro banknotes and the estimated total euro currency in circulation in Slovenia.

This system of recording banknotes, which relies on the estimate of the level of currency in circulation, is likely to add to errors and omissions because the estimate on the currency in circulation is very rough.

Since 2002, the category “Accounts Abroad of Other Sectors” also includes BIS data regarding deposits of domestic households in BIS Member State banks.

Loans are financial assets that are created when a creditor lends funds directly to a debtor, and are evidenced by documents that are not negotiable. From 2001 onwards, inter-company debt transactions between affiliated enterprises (10% or more capital share) are not recorded as loans, but are recorded as direct investment – debt instruments transactions. Loans (including long-term trade credits) and related income have been calculated according to the accrual principle from 2002 onwards and according to the cash principle prior to 2002. From 2005 onwards claims/liabilities of banking sector regardless of capital affiliation to non-residents are included in this item (the direct investment relationships are not distinguished in the data source). Data on loans of households borrowed from the banks abroad (Austria, Italy, Germany) are included from 2012 onwards. The source is ECB database.  

Insurance, pension schemes, and standardised guarantee schemes include non-life insurance technical reserves, life insurance and annuity entitlements, pension entitlements, claims of pension funds on pension managers, entitlements to non pension funds, and provisions for calls under standardised guarantees.Data source for b.o.p. and i.i.p. statistics are quarterly financial accounts. Monthly data are derived by dividing quarterly data equally within separate months within each quarter.

Trade credit and advances are financial claims arising from the direct extension of credit by the suppliers of goods and services to their customers, and advances for work that is in progress or is yet to be undertaken, in the form of prepayment by customers for goods and services not yet provided. Trade credit and advances arise when payment for goods or services is not made at the same time as the change in ownership of a good or provision of a service. Until 2002, short-term trade credits were estimated based on the following calculation:

(export of goods - export payments) – (import of goods - import payments)

Since 2002 until July 2017, short-term commercial credits and advances were included based on SKV reports, since August 2017 they are included based on KRD reports. Short-term trade credits between affiliated companies are included in direct investment.

Other accounts receivable/payable consists of accounts receivable or payable which are not parts of any other instrument.

Special drawing rights (SDR) allocations

The allocation of SDRs to IMF members is shown as a liability incurred by the recipient under SDRs in Other investment, with a corresponding entry under SDRs in Reserve assets.

Reserve assets

Reserve assets are those external assets that are readily available to and controlled by monetary authorities for meeting balance of payments financing needs, for intervention in exchange markets to manage the currency exchange rate, and for other related purposes (such as maintaining confidence in the currency and the economy, or serving as a basis for foreign borrowing). Reserve assets must be foreign currency assets, claims vis-à-vis non-residents and assets that actually exist. Potential assets are excluded.

Reserve assets and related income have been calculated according to the accrual principle from 2002 onwards, and according to the cash principle prior to 2002. Following Slovenia’s entry to the EMU in 2007, claims to other residents of the euro area (denominated in Euros and in other currencies) and claims in Euros to EMU non-residents are not included in reserve holdings. From 2007 onwards, these transactions/positions are shown in the appropriate categories of the financial account sector of Banka Slovenije (portfolio investment and other investment) within the balance of payments statistic or the appropriate instrument within the international investment position statistics. Reserve assets item includes also financial derivatives (from 2009 onwards). More explanation is available in: “The statistical treatment of the international monetary reserves at the entry of Slovenia to the euro area” (Slovenian), in the chapter Methodological information on the internet page: https://www.bsi.si/en/statistics/first-release-rapid-report/external-statistics (International reserves). 

Description of the balance sheet instruments

Below is a short description of the balance sheet aggregate items or instruments, as defined by the European Central bank:

Cash

Holdings of domestic and foreign banknotes and coins in circulation that are commonly used to make payments.

Loans

For the purposes of the statistical reporting scheme, this item consists of funds lent by reporting agents to borrowers, which are not evidenced by documents or are represented by a single document (even if it has become negotiable). It includes assets in the form of deposits, bad debt loans, in respect of which repayment is overdue or otherwise identified as being impaired, traded loans, subordinated debt in the form of deposits or loans and claims under reverse repos. The stock of loans is included into the item according to the “gross” principle.

Securities other than shares

Holdings of securities other than shares or other equity, which are negotiable and usually traded on secondary markets or can be offset on the market, and which do not grant the holder any ownership rights over the issuing institution. Besides negotiable debt securities this item includes: negotiable loans that have been restructured into a large number of identical documents and that can be traded on secondary markets and subordinated debt in the form of debt securities. The item does not include the accrued interest – which are classified into the item remaining assets, except when the separation is not possible (when the interest is the inseparable part of the market price).

Shares and other equity

Holdings of securities which represent property rights in corporations or quasi-corporations. These securities generally entitle the holders to a share in the profits of corporations or quasi-corporations and to a share in their own funds in the event of liquidation. Mutual fund shares and money market fund shares/units are included here.

Remaining assets

This item may also include: financial derivative positions with gross positive market values, non-financial assets (tangible or intangible), accrued interest receivable on loans and securities, the surplus from the deals by procuration, internal affairs.

Deposits

Amounts owed to creditors by reporting agents, other than those arising from the issue of negotiable debt securities. Deposits also cover loans as liabilities of MFIs, which represent amounts received by MFIs that are not structured in the form of deposits, non-negotiable debt securities issued, liabilities for the loans received and where they are not separately stated also deposits redeemable at notice, repos and traded loans. 

Debt securities issued

Securities other than equity issued by reporting agents, which are negotiable and usually traded on secondary markets or which can be offset on the market, and which do not grant the holder any ownership rights over the issuing institution, and the subordinated debt issued by MFI’s in the form of the debt securities. The accrued interest are not included in the stock data, but classified to the remaining liabilities. The amount of debt securities is shown net of own purchase.

Capital and reserves

This category comprises the amounts arising from the issue of equity capital, including also non-distributed benefits or funds, specific and general provisions against loans, securities and other types of assets. The item is adequately netted for the own shares owned. This item also includes the difference between the revenues and expenditures during the year and the money market fund shares/units issued.

Remaining liabilities

The remaining liabilities consist of accrued interest payable on deposits and debt securities, provisions representing the liabilities vis-á-vis third persons, gross amounts payable in respect of transit items, financial derivative positions. The surplus of the liabilities over claims from the deals by procuration, internal affairs is also included here.

Interest Rate Statistics of Monetary Financial Institutions (MIR Statistics)

The reporting population for MIR statistics in Slovenia consists of all banks and savings banks. Reporting is done monthly.

Interest rates are monitored for transactions concluded with non-financial corporations (S.11) and households (S.14+S.15). Data for repo transactions and deposits redeemable at notice include both non-financial corporations and households. Interest rates are calculated only for transactions concluded in euros (EUR) and for transactions within the countries of the European Monetary Union (EMU).

Data presentation:

• Deposits (overnight deposits, deposits with agreed maturities, deposits redeemable at notice and repo transactions),

• Loans to households (overdrafts and revolving loans, interest-bearing debt on credit cards, consumer, housing, and other loans, and loans to sole proprietors),

• Loans to non-financial corporations (overdrafts and revolving loans, interest-bearing debt on credit cards, loans up to EUR 250,000, from EUR 250,000 to EUR 1 million, and over EUR 1 million).

Interest rates and corresponding volumes on:

• Outstanding amounts are defined as the stock of all deposits held by customers, i.e. households and non-financial corporations, with banks and the stock of all loans extended by banks to their customers and

• New business is defined as any new agreement between a customer and a bank. New agreements are all financial contracts, terms and conditions that specify, for the first time, the interest rate on a deposit or loan and all new negotiations of existing deposits and loans.

Overnight deposits, deposits redeemable at notice, revolving loans and overdrafts, convenience and extended credit card credit are always reported as outstanding amounts.

The annualized interest rate, which the reporter calculates using the following formula, is reported:

where:

• AAR is the annualized interest rate,

• OMp is the total interest rate per year,

• n is the number of capitalization periods for the debt financial instrument per year according to the interest payment frequency.

The interest rate for outstanding amounts is the weighted average interest rate used for deposit or loan balances. The nominal value of the transaction, reduced by the matured part of the debt before impairment, is used as the weight. Bad loans and loans for debt restructuring at interest rates below market rates are excluded from the loan balances.

The interest rate for new business is defined as the weighted average interest rate used for new or renegotiated deposits or loans. The contractual amount is used as the weight.

For outstanding amounts, interest rates are broken down by the original maturity of the transaction, while for new business, they are broken down by initial period of interest rate fixation (the period from the conclusion of the transaction to the first possible change of the interest rate) or a combination of the initial period of interest rate fixation and the original maturity.

For new business, interest rates for secured transactions are calculated separately.

For consumer and housing loans reporters also calculate and report the annual percentage rate of charge (APRC). It is calculated using the formula from the first paragraph of Article 23 of the Consumer Credit Act and is equal to the annual percentage rate of charge that equates the present value of all loan disbursements with the present value of all repayments and costs (the reporter must consider all provisions from Article 22 and the second and third paragraphs of Article 23 of the Consumer Credit Act - Official Gazette of the RS, No. 59/10 with amendments).

where:

APRC is the annual percentage rate of charge that equates the present value of all loan disbursements with the present value of all repayments and costs,

m        is the serial number of the last disbursement or the number of all disbursements, tranches if the loan is disbursed gradually; otherwise, m = 1,

k           is the serial number of the disbursement, where 1 ≤ k ≤ m,

Ck         is the amount of the k-th disbursement,

tk           is the duration of the time interval, expressed in years or parts of a year, between the date of the first disbursement and the date of each subsequent disbursement, where t1 = 0,

m'         is the serial number of the last payment of the loan, interest, or costs or the total number of all payments,

l            is the serial number of the payment of the loan, interest, or costs,

Dl         is the amount of each payment of the loan, interest, or costs,

sl          is the duration of the time interval, expressed in years or parts of a year, between the date of the first disbursement and the date of each payment of the loan, interest, or costs,

Σ          is the sum.

Data available from 31.05.2005 or some from 30.06.2010.

ESA 2010 methodology

The financial accounts disclose the stocks and flows that individual institutional sectors record as financial claims and liabilities in financial instruments vis-à-vis counterpart sectors. The methodological basis for the compilation of the financial accounts consists of the European System of National and Regional Accounts (ESA 2010).

The financial accounts of the individual institutional sectors clearly illustrate how lending and borrowing are undertaken via transactions in financial instruments, depending on whether a particular institutional sector has a surplus or a deficit. The balancing item of the financial account (net acquisitions of financial assets minus net incurrence of liabilities) should be the same in value terms as the balancing item of the capital account (net borrowing or net lending), and thus constitutes a link between the financial account and the non-financial account.

Net items in balance sheet:

• the difference between financial assets and liabilities represents net financial assets;

• the difference between total assets (financial and non-financial) and liabilities represents net worth;

• net worth plus equity represents own funds.

Financial accounts may be unconsolidated or consolidated. In consolidated accounts claims and liabilities between institutional units within a particular sector are excluded.

The financial accounts represent an important analytical tool for studying the financial flows between institutional sectors in the economy, and the mutual financial relations between domestic institutional sectors and the rest of the world.

 Rules of recording and valuation

 Stocks of financial assets and liabilities via financial instruments:

• marketable financial instruments are valued at market prices as at the cut-off date;

• unlisted shares and other equity are valued at book value;

• non-marketable debt instruments are valued at nominal value (value of funds paid in, minus repayments, plus accrued interest);

• loans are disclosed at nominal value at both the creditor and the debtor, irrespective of the quality of the loan (loan impairments do not have an impact on the loan stock; the stock is reduced solely at the final write-off of the claim);

• accrued interest is generally included in the instrument to which it relates;

• items in the financial accounts and items in the balance sheet may consequently differ in value.

Transactions are disclosed as net transactions in a particular financial instrument:

• transactions are determined separately for instruments on the asset side and on the liability side;

• transactions comprise the difference between increases (acquisitions) and decreases (disposals) in a particular financial instrument;

• the original cost during the acquisition of the instrument (e.g. purchase value) is taken into account as an increase in a financial instrument;

• the value realised during the disposal of the instrument (e.g. selling value) is taken into account as a decrease in a financial instrument.

Revaluations constitute changes in financial assets and liabilities that are not a consequence of financial transactions:

• revaluations are divided into price changes and other changes;

• price changes include foreign exchange differences as a result of changes in exchange rates, differences in the market price of securities, and equity revaluations;

• other changes comprise changes in the sectoral classification of institutional units, reclassifications between financial instruments, write-offs of non-performing claims, status changes (acquisitions, mergers), and changes in methodology.

Data sources for compilation of financial accounts

Various data sources are used in the compilation of the financial accounts:

• quarterly data on stocks and transactions via counterpart sectors on the basis of direct reporting by institutional units in conjunction with AJPES:

­   - non-financial corporations (S.11): reporting threshold is balance sheet total of EUR 2 million;

­   - financial corporations (S.12) except banks, investment funds and institutions engaged in leasing: reporting threshold is balance sheet total of EUR 1 million;

­   - general government units (S.13): reporting threshold is balance sheet total of EUR 8 million;

• data from banks;

• data from investment funds;

• data from institutions engaged in leasing;

• external statistics data:

­   - balance of payments data on transactions with the rest of the world;

­   - data on the international investment position;

• data for the general government sector;

• data on securities.

General notes

In most respects the Slovenian Balance of Payments and International Investment Position conforms to the methodology of the IMF’s 'Balance of Payments and International Investment Position Manual', sixth edition (2009). External Debt is based on 'External Debt Statistics Guide for Compilers and Users' which is harmonised with the IMF’s Balance of Payments and International Investment Position Manual.

Balance of payments

The balance of payments (b.o.p.) is a statistical statement of the economic transactions between the residents in one economy and non-residents in that economy over a specific period of time. A transaction is an interaction between two institutional units that occurs by mutual agreement or through the operation of the law and involves an exchange of value or a transfer.

Despite its name, which refers to standards applied in the past following recommendations of the IMF Manuals up to the 4th edition, the b.o.p. is now less about payments, as that term is generally understood, than transactions. In fact, international transactions recorded in the b.o.p. may not involve the transfer of money, and some are not paid for in any sense; the change of ownership is the relevant concept to record transactions.

The b.o.p. is organised in three main accounts:

• current account;

• capital account;

• financial account.

The current account shows flows of goods, services, and income between residents and non-residents. The capital account shows flows of non-produced non-financial assets, and capital transfers between residents and non-residents. The financial account shows net acquisitions and disposals of financial assets and liabilities grouped into five functional categories:

• direct investment;

• portfolio investment;

• financial derivatives;

• reserve assets;

• other investment.

In addition to “normal” financial assets/liabilities, it also includes land, other real estate properties (e.g. dwellings) and other immovable assets which are:

• physically located outside the economic territory of an economy and owned by residents of this economy; or

• physically located inside the economic territory of an economy and owned by non-residents.

The sum of the current and capital accounts balances corresponds to the net lending (surplus) or net borrowing (deficit) of an economy vis-à-vis the rest of the world. The same concept can be derived from the financial account as net acquisitions of financial assets minus net incurrence of liabilities. 

Although the balance of payments accounts are, in principle, balanced, imbalances result in practice from imperfections in source data and compilation. This imbalance, a usual feature of balance of payments data, is labelled net errors and omissions and is identified separately in published data.Net errors and omissions are derived residually as net lending/net borrowing and can be derived from the financial account minus the same item derived from the current and capital accounts.

Therefore, a positive value of net errors and omissions indicates an overall tendency that:

a. the value of credits in the current and capital accounts is too low; and/or
b. the value of debits in the current and capital accounts is too high; and/or
c the value of net increases in assets in the financial account is too high; and/or
d. the value of net increases in liabilities in the financial account is too low.

For a negative value of net errors and omissions, these tendencies are reversed.

International investment position

The international investment position (i.i.p.) is a statistical statement that shows, at a specific point in time, the value of the stocks of residents’ financial assets that are non-contingent claims on non-residents in that economy or gold bullion held as reserve assets, and of the non-contingent liabilities of the residents to non-residents in that economy. As in the b.o.p. financial account, financial assets and liabilities are grouped into the five functional categories.

The difference between the financial assets and liabilities is the net i.i.p. and represents either a net claim on or a net liability to non-residents. Changes in the i.i.p. between consecutive periods can be due to transactions, as recorded in the b.o.p. financial account during that period, but also due to other flows.

External debt

Associated with the i.i.p. is the concept of gross external debt, which is the outstanding amount of those actual current, and not contingent, liabilities that require payment(s) of principal and/or interest by the debtor at some point(s) in the future and that are owed to non-residents by residents of an economy. External debt assets are derived from i.i.p. and contain claims to non-resident(s) that are in a form of debt instruments that require payment(s) of principal and/or interest by the debtor at some point(s) in the future. A net external debt concept is derived by subtracting gross external assets in debt instruments from the gross external debt concept. The concept of “debt” does not include equity instruments and financial derivatives.

Gross external debt disclosed on a 'public sector based approach' contains two components; public and publicly guaranteed debt and non-guaranteed private sector external debt. Public and publicly guaranteed debt contains debt liabilities of sectors S.13, S.121 and all liabilities of other sectors if they are guaranteed by a public sector unit. Non-guaranteed private sector external debt contains all other liabilities to non residents.

Institutional sectors – data are grouped into four sectors:

Central bank (S.121)

Banks (S.122)

General government (S.13)

Other sectors (S.11, S.123, S.124, S.125, S.126, S.127, S.128, S.129, S.14, S.15)

Other sectors within the item Capital transfers includes all sectors except the government sector (S.13).

Characteristics of the Data

Current account and capital account items have always positive sign, balance of these accounts represents the difference between receipts and expenditures or exports and imports and has the appropriate sign (positive or negative).

Positive sign of financial account items stands for increase of assets and/or liabilities, negative sign reflects decrease. Balance of financial account is the difference between assets and liabilities.

Dissemination and Revision Policy

Revisions of balance of payments, the international investment position and gross external debt data occur as follows:

• monthly data for balance of payments and external debt relating to the month m are published with m + 6 weeks lag. At the same time all monthly data of the corresponding year are revised.

• quarterly data for international investment position relating to the quarter q are published with q + 10 weeks lag. At the same time all quarterly data of the corresponding year are revised.

Back data revisions relating to years (y-1) and (y-2) occur in the second half or the current year (y), in case of major methodological changes longer time series can be revised as well.

Data sources

The external trade statistics (Statistical Office of the Republic of Slovenia) is the main source of data on trade in goods. Since 1 May 2004, the source of data on trade in goods among Slovenia and EU Member States is the Intrastat reporting. The source of data on trade in goods with other countries is the single administrative document (Exstrastat reporting).

Reports on trade in services, part of trade in goods and on current/capital transfers with nonresidents (BST) are the sources of data on services (excl. travel), data on coverage adjustments of goods item and data on current and capital transfers (excl. transfers with EU budget) from 2008 onwards.

Reports on transactions with securities (VRP) and data from the Securities Clearing Corporation (KDD) are the sources of portfolio investments (debt and equity securities). Also they were the source for financial derivatives (from September 2003 till the end of 2006).

Data regarding drawn/un-drawn credit transactions from foreign credit registration forms (KR) were the source of data on loans of all sectors until 2004; in 2005 and 2006 they were the source only for the non-banking sector.

Reports on credits received and granted and deposits with non-residents (KRD) are the source for data regarding loans and deposit of all sectors, except banks, since 2007. From August 2017, as part of the KRD, also following data is reported:

• short-term trade credits and advances (previously reported under the SKV report),

• investments in foreign debt securities that are carried out without domestic intermediaries (previously reported under the DVP report) and are non-listed,

• less than 10% of equity in the capital of resident companies that are not joint stock companies,

• less than 10% of the equity in the capital of non-listed non-resident companies,

• equity shares in the international organizations.

Reports on monetary financial institutions (PORFI) are the source for data of the banking sector since 2005. PORFI is a source for data on loans, cash and deposits, trade credits, other accounts receivable/payable, financial derivatives and income data (interest).

Annual reports on investments (SN) are the source for reinvested earnings and equity positions of direct investments until 2007. From 2008 onwards monthly reports on investments (SN-T) are source also for all other direct investment transactions in equity and related income. Until 2017 for equity securities investments, carried out without domestic authorized intermediaries, also this source was used. Since August 2017, this type of investments in equity securities are reported under the KRD report. From 2018 SN and SN-T reports are based on amended reporting criteria: that the share of ownership (shares or other equity) in a foreign company or a foreign company in Slovenia is 10% or more. As of January 2023, the reporting threshold is EUR 5 million of the balance sheet total. An estimate is included for data below the reporting threshold.

Report on Modern Payment Instruments (SPI) is the source for data on acquisition of fuel by non-resident transport operators at Slovene petrol stations settled via payment cards of foreign issuers from 2008 onwards.

Accounting data of Banka Slovenije

Budget data on the transactions of government sector between the Republic of Slovenia and EU (from 2004 onwards)

Quarterly data on financial account's statistics are source for financial derivatives for all sectors except the central bank (from 2007 onwards). For banks this data source was used until 2010 (in 2011 it was replaced by PORFI).

Reports on short-term receivables and liabilities from operations with non-residents (SKV) were a source of short-term trade credits and advances from 2002 to July 2017. From August 2017 short-term trade credits and advances are reported under the KRD report.

Reports on purchased / sold foreign debt securities past domestic brokers (DVPs) were the source for the portfolio investment in foreign debt securities that are carried out without domestic brokers, from 2007 to July 2017. From August 2017, this type of portfolio investment is reported under the KRD report.

Reports on account balances and transactions between residents and non-residents (C, PPT, PPV):

• report on account balances at domestic banks – PPV (until 31 December 2004),

• report on account balances abroad – C (until 31 December 2006),

• report on transactions through accounts at domestic banks – PPT (until 31 December 2008),

• report on transactions through accounts abroad – C (until 31 December 2008).

All banks which conducted international payment transactions and all residents with open accounts abroad were obliged to report. The resident issuer/beneficiary of the payment was obliged to forward data on the type of transaction. From 2009 to March 2014 banks which conduct international payment transactions reported only transactions that exceeded threshold EUR 50.000. From April 2014 onwards banks report all payments without transaction codes. Data are used for quality control purposes only.

Accounting data of banks (KNB) until 2010

Estimates and other sources

• estimate of labour income (SORS),

• data on pensions paid to non-residents (ZPIZ),

• survey on the write-downs of debt from trade in goods and services abroad,

• estimates for exports and imports of travel - from 2005 onwards (detailed explanation under item Travel),

• quarterly data on consumption of foreign embassies in Slovenia (SORS, from 2008 onwards),

• migrants' transfers - outflows (bilateral data between countries, from 2008 onwards),

• households' transfers (SORS, from 2008 onwards),

• assets acquired directly by tenders and programs of EU (SORS, from 2008 onwards),

• data on non-residents' investments in real-estate in Slovenia (GURS, from 2008 onwards),

• data on purchases/sales of real-estate in Croatia (Croatian National Bank, from 2008 onwards),

• data on direct investment of Slovene households in the form of real estate abroad (main data source Household Budget Survey, SORS),

• data on purchases/sales of emission allowances between residents and non-residents (Slovenian Environment Agency, from 2008 until 2011. From 2012 onwards data is collected by BST monthly report),

• data on loans of households borrowed from the banks abroad (Austria, Italy, Germany) are included from 2012 onwards. The source is ECB database,

• an estimate of reinvested earnings of investment funds based on the variable "Accrued income factor (AIF)" from CSDB (Central Securities Data Base) from 2015 on,

• data on illegal trade – import of drugs (SORS),

• estimate of on-line purchases of goods (from 2010 onwards),

• estimate of purchases of foreign currency and cheques from foreigners in exchange offices - part of the travel category–(until 2004),

• estimate of expenditures on travel abroad including purchases of goods abroad (until 2004),

• estimate of Italian pensions (IMAD, until the end of 1998),

• estimate of transactions with foreign currencies and the deposits of Slovene households (until 2006).

Data sources for the international investment position of Slovenia are mainly the same as those for the financial account of the balance of payments.

Tables

In May 2006 the tables from 1.1. to 1.8 have been changed and substituted with the new ones, which enables partial continuity of the old time series.

The entry to the euro area (on 1,1.2007) caused a break in the time series of the statistical tables in the Monthly bulletin in cases where the “currency” is an attribute. An expected reclassification of the data between the individual columns in the tables, which keep the same name takes place, for example of the stock of outstanding loans in euros from the time series of “foreign currency” before the introduction to the time series of “domestic currency” after the introduction of euro. To enable easier reconstruction of this change, the shares of the Euro amounts in stocks of the foreign currency on 31.12.2004, 31.12.2005 and 31.12.2006 are published in the Methodological notes for the tables 1.3, 1.4, 1.5 in 1.6, where the reclassification occurred.

Note 1: With the publication of April 2011data the corrected time series on Deposit with agreed maturity and Deposit redeemable at notice (Tables 1.2., 1.4., 1.6.) were published for the period January 2009 to May 2010 due to the change on the source of the data.

 Table 1.1.: Monetary Aggregates

The table shows stock data at the end of month for monetary aggregates M1, M2 and M3, calculated according to the definition of the European Central Bank.

The main characteristics of monetary aggregates under the ECB’s definition:

• Inclusion of liabilities of MFI sectors to EMU non-monetary sectors,

• Exclusion of the monetary neutral sector (the central government has the status of a monetary neutral sector),

• Limited maturity of items included (liabilities of up to 2 years and deposits redeemable at notice of up to 3 months only),

• Equal treatment of the liabilities in domestic and foreign currency,

• Inclusion of the money market fund shares/units into M3.

Composition of monetary aggregates, as defined by the ECB is:

• M1 contains currency in circulation and overnight deposits,

• M2 includes beside M1 also deposits with agreed maturity of up to 2 years and deposits redeemable at notice of up to 3 months,

• M3 includes M2, repurchase agreements and debt securities with the maturity of up to 2 years and money market fund shares/units.

The table is split into two parts: the first part (before the entry of Slovenia into EMU until the end of December 2006) presents Monetary aggregates of Slovenia and the second part (after the entry of Slovenia into EMU from 1 January 2007 onwards) presents the contribution of Slovenia to monetary aggregates of EMU.

The item ‘Currency in circulation’ is calculated on the basis of the Capital Share Mechanism (CSM) which foresees the split of the total amount of issued banknotes in the euro area between the different national central banks of the euro area with respect to their share in the capital of the ECB (8% of the total value of the euro area banknotes in circulation is allotted to the ECB). Coins (which are in fact the liability of the central government) are added to the total amount of banknotes. The item ‘Cash’ held by the MFIs is deducted from the total amount of currency (banknotes and coins).

The contribution of the Slovenia to the euro area monetary aggregates does not represent monetary aggregates of Slovenia. The concept of residency is the one of the euro area. Due to the consolidation within the MFI sector on the level of euro area countries the aggregate M3 could become smaller than M2.

 Table 1.2.: Consolidated Balance Sheet of the Monetary Financial Institutions

The table shows the end of the month consolidated balance sheet of Banka Slovenije and other monetary financial institutions, presented in the tables 1.3. and 1.4. The bilateral claims and liabilities of the sectors S.122 and S.121 are netted out. On the liability side of the balance sheet the liabilities to the central government sector (S.1311) in certain items are excluded and are included in the remaining liabilities.

The item ‘Banknotes and coins’ is for series after 1 January 2007 calculated on the basis of the Capital Share Mechanism (CSM) which foresees to split of the total amount issued in the euro area between the different National central banks of the euro area with respect to their share in the capital of the ECB (8% of the total value of the euro area banknotes in circulation is allotted to the ECB). Coins (which are in fact the liability of the central government) are added to the total amount of banknotes.

 Table 1.3.: Balance Sheet of Banka Slovenije

The table shows Banka Slovenije’s assets and liabilities at the end of month in line with the methodology of the ECB. According to the ECB’s methodology the item ‘Banknotes and coins’ includes the data of coins in circulation (which are in fact the liability of the central government) and excludes the data of issued payment notes, which are included in the remaining assets.

The item ‘Banknotes and coins’ is for series after 1 January 2007 calculated on the basis of the Capital Share Mechanism (CSM) which foresees to split of the total amount issued in the euro area between the different National central banks of the euro area with respect to their share in the capital of the ECB (8% of the total value of the euro area banknotes in circulation is allotted to the ECB). Coins are added to the total amount of banknotes.

 Table 1.4.: Balance Sheet of other Monetary Financial Institutions

The table summarizes data on assets and liabilities of other Monetary Financial Institutions, i.e. banks, savings banks, savings and loans undertakings and money market funds, at the end of the month. Detailed survey of assets and liabilities of the monetary financial institutions is in the tables 1.5. and 1.6.

 Table 1.5.: Selected claims of other Monetary Financial Institutions by sectors

The table shows claims from loans and debt securities of the Other Monetary Financial Institutions (from the table 1.4) broken down by domestic/foreign sectors, type of loans and domestic/foreign currency.

 Table 1.6.: Selected liabilities of other Monetary Financial Institutions by sectors

The table shows liabilities from deposits and securities of the Other Monetary Financial Institutions (from the table 1.4) broken down by domestic/foreign sectors, type of deposits and domestic/foreign currency.

 Table 1.7.: Balance sheet of Banka Slovenije – by instruments

The table shows the data of the balance sheet of Banka Slovenije, split by instruments of the monetary policy. The table is composed according to accounting rules of the ECB an differs from the table 1.3. Balance Sheet of Banka Slovenije, which is composed according to the statistical methodology of the ECB.

 Table 1.8.: Investment funds

 General

Methodology of investment fund statistics in Slovenia is based on Regulation (EC) No 958/2007 of the ECB of 27 July 2007 concerning statistics on the assets and liabilities of investment funds and Guideline of the ECB of 1 August 2007 on monetary, financial institutions and markets statistics (recast). Time series in tables are available from December 2008 on, when the new reporting of investment funds was introduced. The data is revised when publishing data for the next period.

Note 1: Financial sectors comprise Banka Slovenije, other monetary financial institutions (banks, saving banks and monetary funds) and other financial institutions (other financial intermediaries, except insurance corporation and pension funds, financial auxiliaries and insurance corporations and pension funds).

Note 2: Non-financial sectors are formed by non-financial corporations, general government, households and non-profit institutions serving households.

Note 3: Monetary funds are included in the sector of other monetary financial institutions and not in the other financial intermediaries, where investment funds are classified.

 Deposit

This item consists of transferable deposits (sight deposits) and other deposits. Other deposits are deposits, which cannot be used for payments and cannot be exchanged for transferable deposits without significant constraints or extra costs. They comprise deposits with agreed maturity, certificates of deposits, which are non-tradable or whose tradability, although theoretically possible, is very limited and other non-transferable deposits.

 Debt securities

Debt securities are short-term or long-term. Short-term ones include all instruments of monetary market with original maturity of one year or less. Long-term debt securities are securities with original maturity of more than one year and include bonds, instruments of monetary market with original maturity of more than one year and other debt securities. Interest-bearing securities are shown including interests. In case interests cannot be included with debt securities, they are shown separately under the item other assets.

 Shares and other equity

The item includes shares and units/shares of investment fund. Shares are financial assets, which represent the right of ownership to the joint-stock companies. These financial assets usually give the owners the right to certain share in profit of the joint-stock companies and to certain share in their net assets when winding up. Units/shares of investment fund include units or shares of open-end and closed-end investment funds.

 Other assets

Under this item the claims on sold or mature investment, claims on Asset Management Company and trustee, interest and dividend claims, claims on securities' obligations, other corporate claims, accruals and prepaid expenditure are reported. Accruals and prepaid expenditure include deferred expenses or costs, short-term accrued revenues and also deferred interests. Financial derivatives are either financial assets or financial liabilities; in balance sheet they are recorded as unnetted.

 Loans

The item includes loans borrowed, covering loans, repurchase agreements and other forms of loan as techniques and tools for managing the investments of investment funds.

 Investment fund shares/units

Investment fund shares/units represent total liability to shareholders or investors of investment fund. 

 Other liabilities

The item other liabilities include corporate liabilities of investment fund, namely liabilities from financial instruments' purchase, management liabilities, tax liabilities, liabilities of distribution of profits or other payments to holders of units or shareholders, other corporate liabilities, accruals and income collected in advance and financial derivatives. Accruals and income collected in advance include accrued costs or accrued charges and prepaid income. Under this item deferred interests are also reported.

Banka Slovenije Interest Rates (historical data)

Lombard loan: Within the framework of a standing Lombard facility, Banka Slovenije provides one-day Lombard loans to banks and savings banks with securities used as collateral. The pledged securities should amount to 110% of the amount of the Lombard loan.

The repo interest rate for the temporary purchase of treasury bills and tolar and foreign currency bills of Banka Slovenije with obligatory repurchase in seven days was the weighted arithmetic average of daily repo interest rates until March 2004 (effective interest rate). The new seven-day repo was introduced in March 2004; it is offered on a closed basis. The interest rate given is the latest valid interest rate.

Interest rate on banks’ obligatory reserves: 1 percent per year since October 1991.

The overnight-deposit interest rate is an interest rate applying to deposits placed by banks and savings banks on an overnight term with Banka Slovenije.

Long-term deposit at Banka Slovenije was established in July 2004. The variable interest rate is defined once every two months for the next two-month period. It refers to the interest rate for 60-day tolar bills valid at the time of quotation, increased by 0.2 percentage points.

Tolar bills are registered securities subscribed by banks and savings banks with a maturity of 60 or 270 days. Sixty-day bills are offered on a permanent basis; 270-day bills were sold by auction until February 2004, and since then have been offered on a closed basis. Interest rates for tolar bills are given nominally; in the case of auctions they are effective rates. Offers of 270-tolar bills have been frozen since November 2004.

Foreign currency bills are transferable registered securities not issued in series. They are offered on a permanent basis and can be purchased by banks (or by other legal persons through banks until 3 May 2000). They are sold for euros (or German marks until February 1999, or U.S. dollars until June 2006) at a discount with maturities of two to four months.

A penalty rate is generally employed in cases of overdue payments. The penalty rate has been determined by the Law on the Legal Penalty Rate since 28 June 2003.

Interest rates for a certain type of instrument in the table are those last valid in a period (except in the case of effective interest rates). The annual averages of interest rates are computed as simple arithmetic averages of monthly data, if such data are available.

Interbank Money Market Rates and Indexation Clause

Interbank market

SIONIA/SITIBOR

Until 31 December 2006, the figures are annual nominal interest rates for unsecured Slovenian tolar deposits on the Slovenian interbank market.

The interest rate for overnight deposits (SIONIA) is the weighted average interest rate for overnight deposits. SITIBOR is the rate at which Slovenian interbank term deposits are offered by one prime bank to another prime bank.

SIONIA and SITIBOR were valid from 14 July 2003 to 31 December 2006. Break of series in January 2007.

ESTR/EONIA/EURIBOR

ESTR (the euro short-term rate – EURO STR) is the overnight euro short-term interest rate, which reflects the wholesale euro unsecured overnight borrowing costs of banks located in the euro area. It will replace EONIA's overnight interbank rate, which may continue to apply until the end of 2021. The ESTR is published on each TARGET2 business day based on transactions denominated in euro conducted and settled on the previous TARGET2 business day. The ECB publishes the ESTR from 2 October 2019 on each TARGET2 trading day. In the interim period, ie. From 2 October 2019 to the end of 2021, the EONIA rate will be replaced by an ESTR + fixed rate of 0.085%

 Eonia® (Euro OverNight Index Average) is the effective overnight reference rate for the euro. It is computed as a weighted average of all overnight unsecured lending transactions undertaken in the interbank market, initiated within the euro area by the contributing banks.

The Euro Interbank Offered Rate – “Euribor®” – is the money market reference rate for the euro. It is sponsored by the European Banking Federation, which represents the interests of 4,500 banks in 24 Member States of the European Union and Iceland, Norway and Switzerland, as well as the Financial Markets Association. Euribor® is the rate at which euro interbank term deposits are being offered within the EMU zone by one prime bank to another

Indexation clauses

TOM

The tolar indexation clause (TOM) is an annual interest rate calculated by the Statistical Office of the Republic of Slovenia and used for preserving the value of financial liabilities and assets in domestic currency.

TOM (monthly):

until June 1995, indexation was based on the so-called "R", which was equal to the previous month’s inflation rate;

from June 1995, indexation was based on the average of the previous 3 months’ inflation;

from February 1996, indexation was based on the average of the previous 4 months’ inflation;

from December 1996, indexation was based on the average of the previous 6 months’ inflation;

from May 1997, indexation was based on the average of the previous 12 months’ inflation.

Since 1998 the basis for calculating the inflation rate has been the consumer price index. Before that the retail price index was used. Financial liabilities and assets in domestic currency with maturity less than 1 year have not been revalued since July 2002.

Foreign exchange indexation clause USD and CHF

The monthly rate is the growth rate of the end-of-month exchange rate for USD and CHF. The annual rate is computed from the monthly rate on the conform basis, taking into account the actual number of days in the month and the year.

European Central Bank Interest Rates

Counterparties can use the deposit facility to make overnight deposits with the NCBs. The interest rate on the deposit facility normally provides a floor for the overnight market interest rate.

Main refinancing operations are regular liquidity-providing reverse transactions with a frequency and maturity of one week. They are executed by the NCBs on the basis of standard tenders and according to a pre-specified calendar. The main refinancing operations play a pivotal role in fulfilling the aims of the Eurosystem’s open market operations and provide the bulk of refinancing to the financial sector.

Counterparties can use the marginal lending facility to obtain overnight liquidity from NCBs against eligible assets. The interest rate on the marginal lending facility normally provides a ceiling for the overnight market interest rate.

Harmonised long-term interest rates for convergence assessment purposes

The long-term interest rate statistics refer to the monthly average interest rates for long-term government bonds issued by the central government, quoted as percentages per annum.

The fourth Maastricht criterion is based on the level of long-term interest rates. Article 4 of the Protocol on the convergence criteria, as referred to in Article 121 of the Treaty, states that compliance with the fourth convergence criterion "shall mean that, observed over a period of one year before the examination, a Member State has had an average nominal long-term interest rate that does not exceed by more than 2 percentage points that of, at most, the three best performing Member States in terms of price stability. Interest rates shall be measured on the basis of long-term government bonds or comparable securities, taking into account differences in national definitions."

The debt securities used for the calculation of the yield for the purposes of the convergence criterion should be measured on the basis of long-term bonds issued by the central government. The national bond yields used for the Maastricht criterion should be denominated in national currency. The maturity should be as close as possible to ten years residual maturity (any replacement of bonds should minimise maturity drift). The applied bonds should be sufficiently liquid. The “yield to maturity” ISMA formula 6.3 should be applied. Where there is more than one bond in the sample, a simple average of the yields should be used to produce the representative rate.

The European Central Bank and the European Commission have, together with the national central banks, identified the representative debt securities that can be used to measure long-term nominal interest rates and, if necessary, alternative long-term interest rate indicators where suitable government bonds are not available

Data until December 2006 refer to the yield to maturity on a reference long-term general government bond, issued in Slovenian tolars and with a nominal interest rate. Since 1.1.2007 the data show the yield to maturity on a basket of long-term general government bonds, issued in euro and with a nominal interest rate.

Until 2003 a yield to maturity on a primary market is presented, and afterwards a yield to maturity on a secondary market.

Monetary Financial Institutions Interest Rates

Data from January 2003–April 2005

Estimates on MIR statistics refer to interest rates on new business applied by the eight biggest resident banks (selected by balance-sheet-total criterion) to loans denominated in Slovenian tolars vis-ŕ-vis domestic households and non-financial corporations.

Interest rates are calculated as a weighted average of all interest rates on new business in the instrument category.

Loans to non-financial corporations (breakdown by amount category): loans in SIT are converted into EUR by the monthly average exchange rate and then classified according to amount up to and including EUR 1 million, or over EUR 1 million.

“Loans to households for other purposes” include only loans to sole proprietors for current and capital assets.

Data on APRC in the period from January to August 2003 refer to six respondents, and from August 2003 to December 2003, to seven out of eight total respondents.

Data from May 2005–December 2006 covers business conducted in SIT and from January 2007 in EUR, by the total MFI population in Slovenia.

MFI interest rate statistics cover those interest rates that resident monetary financial institutions (MFIs, i.e. “credit institutions”) apply to euro-denominated deposits and loans by households and non-financial corporations which are residents of the euro area.

The legal requirements for MFI interest rate statistics are laid down in Regulation ECB/2013/34 (amended by Regulation ECB/2014/30). Together with Guideline ECB/2014/15 on monetary and financial statistics, the Regulation defines the statistical standards according to which monetary financial institutions must report their interest rate statistics. This regulation is complemented by the Manual on MFI Interest Rate Statistics, which further clarifies and illustrates the statistical requirements. The MFI interest rate statistics refer to the interest rates individually agreed between a credit institution or other institution and its customer. They are converted to an annual basis, taking into account the frequency of interest payments, and are quoted in percentages per annum. At the euro area level 117 interest rate indicators with the corresponding volumes are collected, of which 91 refer to new business and 26 to outstanding amounts.

Outstanding amounts are defined as the stock of all deposits placed by customers, i.e. households and non-financial corporations, with credit institutions or other MFIs, and the stock of all loans granted by credit institutions to customers. An interest rate on outstanding amounts reflects the weighted average interest rate applied to the stock of deposits or loans in the relevant instrument category in the time reference period. Interest rates on outstanding deposits cover all deposits placed and not yet withdrawn by customers in all periods up to and including the reporting date. Interest rates on outstanding loans cover all loans used and not yet repaid by customers in all periods up to and including the reporting date, although excluding bad loans and loans for debt restructuring at rates below market conditions. MFI interest rates on outstanding amounts are hence statistics on the interest rates actually applied to all “open” deposits and loans. Outstanding amount are broken down by original maturity.

New business is defined as any new agreement between the household or non-financial corporation and the credit or other institution. New agreements comprise all financial contracts, the terms and conditions of which specify for the first time the interest rate on the deposit or loan, and all new negotiations of existing deposits and loans. The prolongation of existing deposit and loan contracts which are carried out automatically, i.e. without any active involvement of the household or non-financial corporation, and which do not involve any renegotiating of the terms and conditions of the contracts, including the interest rate, are not considered new business. New business on deposits with agreed maturity are broken down by original maturity, new business on loans are broken down by the initial period of interest rate fixation contained in the contract. For the purpose of MFI interest rate statistics, the initial period of fixation is defined as a predetermined period of time at the start of a contract during which the value of the interest rate will not change.

The annual percentage rate of charge (APRC) is an effective lending rate that covers the total cost of credit to the consumer, i.e. the interest payments as well as all other related charges. APRC is calculated in accordance with the provisions of Articles 24 and 25 of the Consumer Credit Act.  APRC is compiled only for consumer credit and loans to households for house purchases (sole proprietors excluded).

Weighting method: The interest rates on new business are weighted by the size of the individual agreement.

The new interest rate statistics replace the average bank interest rates published by Banka Slovenije. The coverage and definition of the new statistics differ substantially from those previously published. Therefore, a direct comparison of the new and old rates is not possible.

* Households = sole proprietorships + individuals + non-profit institutions serving households

**APRC data includes households without sole proprietorships and without non-profit institutions serving households

Note 1: For this instrument category, new business and outstanding amounts coincide.

Note 2: For this instrument category, households and non-financial corporations are merged and shown under the household sector.