Borrowing and state budget debt management

The debt of the Republic of Slovenia

Information on the general government debt and, more specifically, the state budget debt by instrument, currency, interest rate type and repayment schedule.

Financing programme for the execution of the budget of the Republic of Slovenia

The financing programme is the basic operational document for financing the execution of the state budget and government debt management transactions. It defines the structure of instruments for financing the state budget and managing government debt, taking into account the optimisation of the currency, maturity and interest structure of the debt and the management of its portfolio risks. The applicable financing programme adopted by the Government of the Republic of Slovenia always relates to the latest adopted state budget.

Borrowing through the issuance of the Republic of Slovenia’s government bonds and treasury bills is the primary state budget financing instrument. In accordance with each financing programme, other financing instruments may be used to finance the state budget.

Bonds

A bond is a book-entry, registered and transferable debt security with a maturity of more than one year. For investors, bonds are a form of financial investment on the basis of which they receive predetermined interest payments for the money lent (coupon). Benchmark bonds are issued by the Republic of Slovenia in accordance with the Annual Budget Financing Programme of the Republic of Slovenia. The Ministry of Finance defines the maturity of bonds and the dynamics of their issuance subject to market conditions, in accordance with the strategic and operational objectives set out in the financing programme, taking into account the maturity structure of the existing state budget debt. In the European market and other markets, Slovenian government bonds are issued by syndication. Bonds are not issued via auctions.

Treasury bills

Treasury bills are book-entry, serial, registered and transferable securities with maturity terms of three, six, twelve and eighteen months. They are issued in denominations of EUR 1.000 and the face value of each issue depends on the decision of the issuer.

Treasury bills are discounted securities: when treasury bills are issued, the investor pays a discounted amount, and when the bill matures, the issuer pays the face value of the treasury bills. Interest is calculated using a simple interest calculation and the decursive interest calculation method, taking into account the actual number of days to maturity and using 360 days in a year.

The primary issuance of treasury bills takes place through auction. At an auction, investors or primary dealers, respectively, submit bids for the purchase of treasury bills, which determines the nominal relative interest rate to be paid on the issue offered. In auctions, uniform pricing is used, meaning that bids at the uniform price or above are accepted at the uniform price (bids at the uniform price may be partly accepted), and bids below the uniform price are not accepted.

Holders of treasury bills may be legal or natural persons who bid through primary dealers for treasury bills. The settlement of treasury bills takes place two working days after the auction.

Treasury bills are money market instruments listed on the Ljubljana Stock Exchange.

For more information on treasury bills, please read the offering circular or contact:

Primary dealers of government securities

A primary dealer is a financial institution that is in a contractual relationship with the Republic of Slovenia. Among other things, a primary dealer acts as an agent in the sale of bonds and treasury bills to final investors and ensures their liquidity in the secondary market.

Trading in government securities

Issued government securities are traded in a variety of secondary securities markets.

Republic of Slovenia bonds registered with the Central Securities Clearing Corporation (KDD) and Republic of Slovenia treasury bills are listed on the Ljubljana Stock Exchange.

Republic of Slovenia bonds registered with Euroclear or Clearstream are listed on the Luxembourg Stock Exchange.

Benchmark bonds denominated in EUR are also traded on MTS Slovenia.

In the settlement of transactions in the secondary market, Slovenia supports T + 2 as the standard settlement period for OTC secondary market transactions in transferable government securities.

A statement by the Government of the Republic of Slovenia on the selection of a home Member State regarding the disclosure of regulated information in connection with the issuances of securities:

In accordance with Article 66 of the Market in Financial Instruments Act, the Government of the Republic of Slovenia hereby declares that it has selected the Republic of Slovenia as the home Member State and the Securities Market Agency as the competent authority regarding the disclosure of regulated information in connection with the issuances of securities.