Central Bank Independence in Transition Economies

Central Bank Independence… 

S&A 120 

51

13C. Limitations on Lending 

The Government  keeps its deposits in the National Bank of Slovenia (Art. 60). 

The NBS determines the procedures for performance of transactions for the 

Government (Art. 62). The Bank can grant short term credit to the government which 

have to be repaid by the end of the budget year. However, since the establishment of 

the Bank, the Government has never taken advantage of this possibility. The law limits 

the total amount of this credit to 5 percent of the budget in the current year and 20% of 

the anticipated budget deficit. The Bank shall inform the Parliament on the loans 

granted to the Government. (Art. 61).