Financial Markets

Interest rates (Table 2.1. - 2.6.)

Annual interest rates.

r = real rate over Tolar indexation clause 
r(D) = real rate over foreign exchange indexation clause 
n = overall nominal rate 
TOM = Tolar indexation clause 
EUR = foreign exchange clause

Table 2.1.: Bank of Slovenia Interest Rates

Lombard loan: Within the framework of standing lombard facility Bank of Slovenia 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 lombard loan.

Repo interest rate for the temporary purchase of treasury Bills, tolar and foreign currency Bank of Slovenia’sBills with obligatory repurchase in 7 days was the weighted arithmetic average of daily repo interest ratesuntil March 2004 (effective interest rate). The new 7-day repo was introduced in March 2004, it is offeredon a closed basis. The interest rate announced 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 the deposits placed by banks and savingsbanks on an overnight term with the Bank of Slovenia.

Long-term deposit at Bank of Slovenia has been established in July 2004. Variable interest rate is definedewery 2 months for the nex two months. It refers to 60-day tolar bills' interest rate valid at the time ofquotation, increased by 0,2 percentage points.

Tolar bills are registered securities subscribed by banks and savings banks with maturity of 60 and 270days. 60-day bills are offered on a permanent basis, 270-day bills were sold by auction till February 2004,afterwards are offered on a closed basis. Interest rates for tolar bills are nominal given, in the case ofauctions 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 apermanent basis and can be purchased by banks (by other legal persons through banks till 3rd May2000). They are sold for Euros (till 16.02.1999 for German Marks) or US Dollars (abolished in June 2006)at a discount with maturities of two to four months.

Penalty rate is generally used in cases of overdue payments. The penalty rate is determined by the Law onthe legal penalty rate since 28.06.2003.Interest rates for a certain type of instrument in the table are those last valid in a period (except in the caseof effective interest rates). The annual averages of interest rates are computed as simple arithmetic averagesof monthly data, if such data are available.

Table 2.2.: Interbank Money Market Rates and Indexation Clause

Interbank market

The figures are annual nominal interest rates for unsecured Slovenian tolar deposits on the Slovenian interbank market. Interest rate for overnight deposits (SIONIA) is weighted average interest rate for overnight deposits. Interest rate for deposits till 30 days is weighted average interest rate for deposits with 
maturity till 30 days.

The annual averages of interbank interest rates are computed as simple arithmetic averages of monthly data.

Tolar indexation clause

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

TOM (monthly): since 5th August 1995: average of previous 3 months’ inflation (until June 1995 indexation was based on so called R that was equal to the previous months’ inflation rate, from 1st June till 4st August 1995 indexation was based on the average of previous 3 months’ inflation); since February 1996: 4 months; since December 1996: 6 months; since May 1997: 12 months.

Financial liabilities and assets in domestic currency, with maturity less than 1 year, are not revalued since July 2002.

Foreign exchange indexation clause

Monthly rate is growth rate of Bank of Slovenia’s end of month exchange rate for EUR ( DEM ) or USD.

Annual rate is computed from monthly rate on the conform basis, taking into account the actual number of days in the month and in the year.

Figures for 1993 to 1998 in columns 4, 6 and 8 represent growth of the category in the period December to December.

Table 2.3.: Average Commercial Banks' Interest Rates

Average interest rates (r and r(D)) are weighted arithmetic averages of the minimum and maximum interest rates. 
Spread is the difference between the weighted minimum and maximum interest rate: rmin=r - spread, rmax=r+spread. 
Nominal interest rates (n) are total annual interest rates.

The figures for the latest month are always provisional; updated figures in the following Monthly Bulletin are not marked with sign *.

With September 1995 was abolished the revaluation with the tolar indexation clause for obligations in domestic currency till 30 days, with July 2002 also revaluation for all loans and deposits in domestic currency with maturity less than 1 year. 
Note 1: With the 1st July 2002 the "Law on changes and completions of the law on penalty rate and tolar indexation clause" came into force. It prohibits the use of tolar indexation clause for assets and obligations in domestic currency with the maturity less than 1 year. At the same time have most banks also stopped using the foreign exchange clause for short-term loans and deposits, which has reduced the number of reporting banks and led to series breaks.

Table 2.4.: Average Commercial Banks' Interest Rates on New Loans 

Up to and including December 2005 average interest rates on new loans are calculated on a basis of the data of the eight biggest banks, selected by balance-sheet-total criterion. Starting in January 2006 data series represent average interest rates of all monetary and financial institutions.

New loans represent new contracts in the reference month. Data for consumer loans to households is collected on the representative sample of new loans (limited number of reports, minimal amount of a single loan) up to and including December 2005, further on data represents all new consumer contracts. Any automatically changed conditions of lending contracts do not represent new business.
Interest rate on new business is a nominal interest rate increased by a sum of base interest rate or interest rate bounded to the euro exchange clause and subsidy per annum. Average interest rate on new business does not include any administrative or other costs.

All the interest rates are nominal weighted arithmetic averages, where value of certain type of loan represents the weight, except for foreign currency loans where the growth of foreign exchange rate is not taken into consideration.

The interest rates are presented separately, according to their type: 
NOM = a nominal interest rate, without indexation, 
TOM = an interest rate is bound to the base interest rate (TOM), 
D = an interest rate is bound to the euro exchange clause.

The annual averages are computed as simple arithmetic averages of monthly data.

…* - confidential data

Table 2.5.: Average Commercial Banks' Interest Rates on Basis of Interest 
Income and Interest Expenses

Interest rates are computed as the ratio of the amount of interest to the average balance of assets. Interest is represented by the interest income and interest expenses. The average amount of investments/assets is a sum of daily values divided by the number of days.

Because of the change in the frame of accounts for banks and savings banks since May 2002 the revalorization and interest incomes are no more represented separately, so the calculation of the real effective interest rates is no longer possible.

Ljubljana Stock Exchange (Tables 2.7. to 2.9.)

Table 2.7.: The Ljubljana Stock Exchange: Turnover by Market Segment and by Type of Securities

Shares – Privatization Investment Funds shares are not included. 
PIF - Privatization Investment Funds shares.

Turnover is measured by a single counting.

Table 2.8.: The Ljubljana Stock Exchange: Market Capitalization and Turnover Ratio

Market capitalization by market segment and by type of securities is calculated as the sum of market capitalization of individual securities. Market capitalization of an individual security is calculated as the product of the number of listed securities and the market price at the end of period.

Turnover ratio is calculated as turnover in a period divided by market capitalization at the end of period. Short-term securities are not included in calculations of market capitalization and turnover ratio.

Table 2.9.: The Ljubljana Stock Exchange: Slovenian Stock Exchange Index 
and Bond Index

SBI - Slovenian Stock Exchange Index (index value: January 1994=1000) 
BIO - Bond Index. 
SBI, BIO - value of SBI and BIO at the end of period. 
dT - change of index value by points. 
d% - change of index value in percentage. 
Min, Max - minimum and maximum value of index in a period.

Exchange rates (Tables 2.10.1. to 2.11.4.)

Tables 2.10.: Selected Bank of Slovenia Exchange Rates- Average Rates

The tables show Bank of Slovenia middle rates. Annual rates are computed as arithmetical averages of monthly rates. Monthly averages are computed as arithmetical averages of daily rates (Sundays and holidays are not included).

As from 1st January 1999, with introduction of European Monetary Union, the European Currency Unit (XEU) was replaced by the Euro (EUR) at the exchange rate 1 :1. Fixed exchange rates between the Euro and the national currencies of the EMU Member States (valid from 1st January 2001):

1EUR=40,33990 BEF
 =1,95583 DEM
 = 340,75000 GRD
 = 166,38600 ESP
 = 6,55957 FRF
 = 0,78756 IEP
 = 1936,27000 ITL
 = 40,33990 LUF
 = 2,20371 NLG
 = 13,76030 ATS
 = 200,48200 PTE
 = 5,94573 FIM

Due to the introduction of Euro in January 2002 the exchange rates of members of EMU currencies (ATS, FRF, DEM, ITL) are replaced by the exchange rates of some EU accession countries (CZK, HUF, PLN, SKK).

Introduction of a new currency, the Kuna (=1,000 previous Croatian Dinars) on 30th May 1994. 
The Polish zloty was denominated on 1st January 1995 at the exchange rate 1 new zloty for 10.000 old zlotys.

Tables 2.11.: Turnover and Foreign Exchange Market

Annual rates are computed as arithmetical averages of monthly rates. Monthly rates are averages computed from daily rates on working days, weighed with turnover. Foreign currency exchange offices also report transactions on Saturdays, not shown in the table, but included in the monthly and annual totals. Totals also include transactions between banks and enterprises and between banks solely. In addition to that the transactions between enterprises are included until 30th September 1999 and the transactions of banks with non-residents and households from 1st October 1999.

On the spot exchange market the timing of settlement is at latest 2 working days from the agreement. The forward exchange market is designed for transaction where the timing of settlement is at least 2 woking days after the agreement.

The data by the contract agreement are defined by the agreement time of the transaction. The data by the contract settlement are time defined by the settlement time of the transaction.

Data for the turnover on the forward exchange market are available from October 1999. Also the data for turnover by the settlement are available only from October 1999.