Government guarantees and guarantees by public sector entities
The State may issue guarantees for the liabilities of legal entities from the public or private sectors to promote development in various areas. Acts regulating guarantees prescribe the basic elements of a guarantee, which is governed by a guarantee contract and a guarantee agreement.
Granting government guarantees
Government guarantees for public sector entities are granted in particular for projects of general public interest. These include projects relating to public infrastructure development, energy development, export activities, environmental protection, new technical and technological development projects, health, and education. Government guarantees for private sector entities help businesses obtain funding for prospective programmes and assist companies in difficulty.
Government guarantees are granted pursuant to the Public Finance Act, while annual quotas for government guarantees are set each year by separate acts governing the implementation of the central government budget; the State may also grant guarantees outside this quota where provided for by law.
Government guarantees do not constitute real liabilities but only contingent liabilities on the part of the Republic of Slovenia. Real liabilities only become effective when the primary debtor to whom the guarantor is the State fails to comply with its obligations within the agreed time limit.
|Year (EUR million)||2014||2015||2016||2017||2018|
|Share in GDP||22.0%||18.2%||16.9%||14.6%||12.7%|
Guarantees by public sector entities
A public sector entity referred to in Article 87 of the Public Finance Act may issue a guarantee to other legal entities, which then constitutes its contingent debt. If the issue of the guarantees is not a statutory activity of this legal entity, the prior approval of the Ministry of Finance and a prior positive opinion of the line ministry must be obtained before the guarantee is issued. The issuance of a guarantee shall be considered a liability and is included in the debt of the legal entities referred to in Article 87 of the Public Finance Act.