Bond Slovenija 5.85% ( US831594AD88 ) in USD

Issuer Slovenija
Market price 100 %  ▼ 
Country  Slovenia
ISIN code  US831594AD88 ( in USD )
Interest rate 5.85% per year ( payment 2 times a year)
Maturity 09/05/2023 - Bond has expired



Prospectus brochure of the bond Slovenia US831594AD88 in USD 5.85%, expired


Minimal amount /
Total amount /
Detailed description Slovenia is a small, Central European country known for its stunning natural beauty, including the Julian Alps, Lake Bled, and the Adriatic coastline, alongside a rich history and culture blending Alpine, Mediterranean, and Central European influences.

The Republic of Slovenia, a sovereign issuer within the Eurozone renowned for its stable economic profile, successfully concluded the lifecycle of its U.S. Dollar-denominated bond, ISIN US831594AD88, which matured and was redeemed at par on May 9, 2023. This obligation, originally issued by the Slovenian government, featured a 5.85% coupon rate, distributed through semi-annual payments.







THE REPUBLIC OF SLOVENIA
U.S.$1,000,000,000 4.750 per cent. Notes due 2018
U.S.$2,500,000,000 5.850 per cent. Notes due 2023
The issue price of the U.S.$1,000,000,000 4.750 per cent. Notes due 2018 (the ``2018 Notes'') and the U.S.$2,500,000,000
5.850 per cent. Notes due 2023 (the ``2023 Notes'' and, together with the 2018 Notes, the ``Notes'') of the Republic of
Slovenia (``Slovenia'', the ``Republic'' or the ``Issuer'') is 99.124 per cent. and 98.884 per cent., respectively, of their
principal amount.
Unless previously redeemed or cancelled, the 2018 Notes will be redeemed at their principal amount on 10 May 2018
and the 2023 Notes will be redeemed at their principal amount on 10 May 2023. See ``Terms and Conditions of the
Notes ­ Redemption and Purchase''.
The 2018 Notes will bear interest from and including 10 May 2013 (the ``Issue Date'') at the rate of 4.750 per cent. per
annum payable semi-annually in arrear on 10 May and 10 November in each year, commencing on 10 November 2013.
The 2023 Notes will bear interest from and including the Issue Date at the rate of 5.850 per cent. per annum payable
semi-annually in arrear on 10 May and 10 November in each year, commencing on 10 November 2013. Payments on
the Notes will be made in U.S. dollars without deduction for or on account of any Slovenian taxes and the Republic
will pay additional amounts if any such taxes are imposed, subject to certain exceptions as described under ``Terms and
Conditions of the Notes ­ Taxation''.
Application has been made to list the Notes on the Official List of the Luxembourg Stock Exchange and to admit the
Notes to trading on the Luxembourg Stock Exchange's regulated market pursuant to the rules and regulations of the
Luxembourg Stock Exchange.
This Offering Circular neither constitutes a prospectus pursuant to Part II of the Luxembourg law on prospectuses for
securities (loi relative aux prospectus pour valeurs mobilie`res) dated 10 July 2005 (the ``Luxembourg Prospectus Law'')
which implements Directive 2003/71/EC, as amended (the ``Prospectus Directive'') nor a simplified prospectus pursuant
to Part III of the Luxembourg Prospectus Law. Accordingly, this Offering Circular does not purport to meet the
format and the disclosure requirements of the Prospectus Directive and Commission Regulation (EC) No. 809/2004
implementing the Prospectus Directive, as amended, and it has not been, and will not be, submitted for approval to any
competent authority within the meaning of the Prospectus Directive and, in particular, the Supervisory Commission of
the Financial Sector (Commission de Surveillance du Secteur Financier), in its capacity as competent authority under the
Luxembourg Prospectus Law. The Notes issued pursuant to this Offering Circular will, therefore, not qualify for the
benefit of the single European passport pursuant to the Prospectus Directive.
The Notes are expected to be rated A- by Fitch Ratings Limited (``Fitch''), Ba1 by Moody's Investors Service, Inc.
(``Moody's'') and A- by Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. (``S&P'').
A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or
withdrawal at any time by the assigning rating organisation. As at the date of this Offering Circular, each of Fitch,
Moody's and S&P is established in the European Union and is registered under Regulation (EU) No. 1060/2009 on
credit rating agencies (the ``CRA Regulations'').
The Notes have not been, and will not be, registered under the United States Securities Act of 1933 (the ``Securities Act'')
or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered,
sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Notes are being offered,
sold or delivered: (a) in the United States only to qualified institutional buyers (``QIBs'') (as defined in Rule 144A (``Rule
144A'') under the Securities Act) in reliance on, and in compliance with, Rule 144A; and (b) outside the United States in
reliance on Regulation S (``Regulation S'') under the Securities Act. Each purchaser and prospective purchasers of the
Notes will be deemed to have made the representations described in ``Subscription and Sale'' and is hereby notified that the
offer and sale of Notes to it is being made in reliance on the exemption from the registration requirements of the Securities
Act provided by Rule 144A. In addition, until 40 days after the commencement of the offering, an offer or sale of any of
the Notes within the United States by any dealer (whether or not participating in the offering) may violate the registration
requirements of the Securities Act if the offer or sale is made otherwise than in accordance with Rule 144A. For a
description of this and certain further restrictions on offers, sales and transfers of the Notes and distribution of this
Offering Memorandum; see ``Subscription and Sale'' and ``Transfer Restrictions''.
The Notes of each series will initially be represented by two global certificates in registered form (the ``Global
Certificates''), one of which will be issued in respect of the Notes offered and sold in reliance on Rule 144A (the
``Restricted Global Certificate'') and will be registered in the name of Cede & Co., as nominee for The Depository
Trust Company (``DTC''), and the other of which will be issued in respect of the Notes offered and sold in reliance on
Regulation S (the ``Unrestricted Global Certificate'') and will be registered in the name of a common safekeeper (the
``Common Safekeeper'') for Euroclear Bank SA/NV (``Euroclear'') and Clearstream Banking, socie´te´ anonyme
(``Clearstream, Luxembourg'') and/or any other relevant clearing system. It is expected that delivery of the Global
Certificates will be made on 10 May 2013 or such later date as may be agreed (the ``Closing Date'') by the Republic
and the Managers (as defined under ``Subscription and Sale'').
Joint Lead Managers
BNP PARIBAS
DEUTSCHE BANK
J.P. MORGAN
Co-Lead Manager
JEFFERIES
Offering Circular dated May 8, 2013
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To the best of the knowledge and belief of the Issuer (which has taken all reasonable care to ensure
that such is the case), this Offering Circular contains all information with respect to the Issuer and
the Notes which is material in the context of the issue and offering of the Notes, the information
contained in this Offering Circular is true and accurate in every material respect and is not
misleading, the opinions and intentions expressed in this Offering Circular are honestly held and there
are no other facts the omission of which makes misleading any statement herein, whether of fact or
opinion. The Issuer accepts responsibility for the information contained in this Offering Circular
accordingly.
This Offering Circular neither constitutes a prospectus pursuant to Part II of the Luxembourg law on
prospectuses for securities (loi relative aux prospectus pour valeurs mobilieres) dated 10 July 2005 (the
``Luxembourg Prospectus Law'') which implements Directive 2003/71/EC of the European Parliament
and of the Council of 4 November 2003 (the ``Prospectus Directive'') nor a simplified prospectus
pursuant to Chapter 2 of Part III of the Luxembourg Prospectus Law. Accordingly, this Offering
Circular does not purport to meet the format and the disclosure requirements of the Prospectus
Directive and Commission Regulation (EC) No. 809/2004 implementing the Prospectus Directive, and
it has not been, and will not be, submitted for approval to any competent authority within the
meaning of the Prospectus Directive and, in particular, the Supervisory Commission of the Financial
Sector (Commission de Surveillance du Secteur Financier), in its capacity as competent authority under
the Luxembourg Prospectus Law.
No person has been authorised in connection with the offering of the Notes to give any information
or make any representation regarding the Issuer or the Notes other than as contained in this Offering
Circular. Any such representation or information should not be relied upon as having been authorised
by the Issuer or any agency thereof or the Managers (as defined in ``Subscription and Sale''). Effective
from the date of commencement of discussions concerning the Issuer or the sale of Notes, prospective
purchasers of Notes and each of their employees, representatives or other agents may disclose to any
and all persons, without limitation of any kind, the U.S. federal income tax treatment and tax
structure of the offering and all materials of any kind, including opinions or other tax analyses that
the Issuer has provided to such prospective purchasers relating to such U.S. federal income tax
treatment and tax structure. Neither the delivery of this Offering Circular nor any sales made in
connection with the issue of the Notes shall, under any circumstances, constitute a representation that
there has been no change in the affairs of the Issuer since the date hereof.
To the fullest extent permitted by law, the Managers do not accept any responsibility for the contents
of this Offering Circular or for any other statement made or purported to be made by the Managers
in connection with the Issuer or the issue and offering of the Notes. The Managers accordingly
disclaim all and any liability whether arising in tort or contract or otherwise which any of them
might otherwise have in respect of this Offering Circular or any such statement. Each person
receiving this Offering Circular acknowledges that such person has not relied on any Manager or any
person affiliated with any Manager in connection with its investigation of the accuracy of such
information or its investment decision. Each person contemplating making an investment in the Notes
must make its own investigation and analysis of the creditworthiness of the Issuer and its own
determination of the suitability of any such investment, with particular reference to its own
investment objectives and experience and any other factors which may be relevant to it in connection
with such investment.
The Notes have not been approved or disapproved by the U.S. Securities and Exchange Commission, any
State securities commission in the United States or any other U.S. regulatory authority, nor have any of
the foregoing authorities passed upon or endorsed the merits of the offering of the Notes or the accuracy
or adequacy of this Offering Circular. Any representation to the contrary is a criminal offence in the
United States.
This Offering Circular has been prepared by the Issuer for use in connection with the offer and sale
of the Notes outside the United States, the resale of the Notes in the United States in reliance on
Rule 144A and the admission of the Notes for listing on the Luxembourg Stock Exchange. The
Issuer and the Managers reserve the right to reject any offer to purchase the Notes, in whole or in
part, for any reason. This Offering Circular does not constitute an offer to any person in the United
States other than any QIB to whom an offer has been made directly by one of the Managers or its
U.S. broker-dealer affiliate. Distribution of this Offering Circular to any person within the United
States, other than any QIB and those persons, if any, retained to advise such QIB with respect there
to, is unauthorised and any disclosure without the prior written consent of the Issuer of any of its
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contents to any such person within the United States, other than any QIB and those persons, if any,
retained to advise such QIB, is prohibited.
This Offering Circular does not constitute an offer of, or an invitation by or on behalf of, the Issuer
or any agency thereof or any Manager to subscribe or purchase any of the Notes. The distribution of
this Offering Circular and the offering of the Notes in certain jurisdictions may be restricted by law.
Persons into whose possession this Offering Circular comes are required by the Managers to inform
themselves about and to observe any such restrictions. For a description of certain further restrictions
on offers and sales of Notes and distribution of this Offering Circular, see ``Subscription and Sale''
and ``Transfer Restrictions''.
In this Offering Circular, unless otherwise specified or unless the context otherwise requires, references
to ``EUR'', ``c'' or ``euro'' are to the currency introduced at the start of the third stage of European
Economic and Monetary Union pursuant to the Treaty establishing the European Community (as
amended from time to time). On 1 January 2007, the euro became legal tender in Slovenia. It
replaced the Slovenian tolar (``SLT'') at the fixed exchange rate of c1 = 239.64. References to
``billions'' are to thousands of millions.
References to ``Uradni list RS'' are to the official gazette of the Republic of Slovenia.
Information contained herein that is identified as being derived from a publication of the Republic of
Slovenia or one of its agencies or instrumentalities is included herein on the authority of such
publication as an official public document of the Republic of Slovenia. All other information
contained herein is included as an official public statement made on the authority of the Minister of
Finance of the Republic of Slovenia.
Statistical data appearing in this Offering Circular has, unless otherwise stated, been obtained from
the Statistical Office of the Republic of Slovenia (the ``SORS'') and the Bank of Slovenia. On the
basis of these calculations, where appropriate, projections were made by the SORS, the Bank of
Slovenia, and the Institute for Macroeconomic Analysis and Development (IMAD/UMAR). Budget
data, including pension fund data, and data relating to indebtedness has been obtained from the
Ministry of Finance of the Republic of Slovenia (the ``Ministry of Finance''). The same databases are
used for regular reporting. Similar statistics may be obtainable from other sources, although the
underlying assumptions and methodology, and consequently the resulting data, may vary from source
to source. Although every effort has been made to include in this Offering Circular the most reliable
and the most consistently presented data, no assurance can be given that such data was compiled or
prepared on a basis consistent with international standards and practices. However, as far as the
Issuer is aware and is able to ascertain from the information published by these entities, the
information has been accurately reproduced and no facts have been omitted which would render the
reproduced information inaccurate or misleading in any material respect. In this Offering Circular, the
data is presented as having been provided by the relevant responsible source. The relevant interim
period in 2013 for which, and/or the relevant date in 2013 as at which, data is presented may differ
depending on the most recent information available from the relevant responsible source.
Unless otherwise stated, all annual information, including budgetary information, is based on calendar
years. Gross Domestic Product (``GDP'') is a measure of the total value of final products and services
produced in the country. Gross Value Added (``GVA'') is a measure of the total value of products
and services before taking account of taxes and subsidies. Unless otherwise stated, all references to
``GDP'' or ``GVA'' are to ``real GDP'' or ``real GVA'', which measures the total value in constant
prices, thus allowing historical GDP comparisons that exclude the effect of inflation. For the purposes
of this Offering Circular, real GDP figures are calculated by reference to previous year prices.
Nominal GDP measures the total value in current prices.
Certain figures included in this Offering Circular have been subject to rounding adjustments;
accordingly, figures shown for the same category presented in different tables may vary slightly and
figures shown as totals in certain tables may not be an arithmetic aggregation of the figures which
precede them. Certain statistical information relating to periods in 2013 should be treated as
preliminary and any statistical information may be subject to future adjustment.
This Offering Circular is based upon statistics from 2007 to 2012 and certain statistical information
for periods in 2013. Statistical information for interim periods shorter than one year may not be
directly comparable to full-year data.
Certain revisions of historical data were undertaken by the SORS in 2011 in order to implement the
Commission Regulation (EU) No. 715/2010 of 10 August 2010. The aim of these revisions was to
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bring the statistical methods applied within the Republic of Slovenia in line with the approach
adopted throughout the rest of the European Union (``EU'') in accordance with the applicable
Eurostat rules. The Eurostat methodology includes more detailed subclassifications in the general
government sector and introduces non-material changes in the classification of some source items,
including, for example, certain labour market data.
STABILISATION
In connection with the issue of the Notes, Deutsche Bank AG, London Branch (the ``Stabilising
Manager'') or any person acting on behalf of the Stabilising Manager may over-allot Notes or effect
transactions with a view to supporting the market price of the Notes at a level higher than that which
might otherwise prevail. However, there is no assurance that the Stabilising Manager (or any persons
acting on behalf of the Stabilising Manager) will undertake stabilisation action. Any stabilisation action
may begin on or after the date on which adequate public disclosure of the terms of the offer of the
Notes is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30
days after the Issue Date of the Notes and 60 days after the date of the allotment of the Notes. Any
stabilisation or over-allotment must be conducted by the Stabilising Manager (or persons acting on
behalf of the Stabilising Manager) in accordance with all applicable laws and rules.
NOTICE TO NEW HAMPSHIRE RESIDENTS
NEITHER THE FACT THAT A REGISTRATION STATEMENT OR AN APPLICATION FOR A
LICENSE HAS BEEN FILED UNDER CHAPTER 421-B OF THE NEW HAMPSHIRE REVISED
STATUTES (``RSA'') WITH THE STATE OF NEW HAMPSHIRE NOR THE FACT THAT A
SECURITY IS EFFECTIVELY REGISTERED OR A PERSON IS LICENSED IN THE STATE
OF NEW HAMPSHIRE CONSTITUTES A FINDING BY THE SECRETARY OF STATE OF
NEW
HAMPSHIRE
THAT
ANY
DOCUMENT
FILED
UNDER
RSA
421-B
IS
TRUE,
COMPLETE AND NOT MISLEADING. NEITHER ANY SUCH FACT NOR THE FACT THAT
AN EXEMPTION OR EXCEPTION IS AVAILABLE FOR A SECURITY OR A TRANSACTION
MEANS THAT THE SECRETARY OF STATE HAS PASSED IN ANY WAY UPON THE
MERITS OR QUALIFICATIONS OF, OR RECOMMENDED OR GIVEN APPROVAL TO, ANY
PERSON, SECURITY OR TRANSACTION. IT IS UNLAWFUL TO MAKE, OR CAUSE TO BE
MADE,
TO
ANY
PROSPECTIVE
PURCHASER,
CUSTOMER
OR
CLIENT
ANY
REPRESENTATION INCONSISTENT WITH THE PROVISIONS OF THIS PARAGRAPH.
SERVICE OF PROCESS AND ENFORCEMENT OF CIVIL LIABILITIES
The Issuer is a foreign sovereign state outside the United States and the United Kingdom, and a
substantial portion of the assets of the Issuer are located outside the United States and the United
Kingdom. As a result, it may not be possible for investors to effect service of process within the
United States or the United Kingdom upon the Issuer or to enforce against the Issuer in or through
courts located in the United States or the United Kingdom judgments obtained in courts located in
the United States or the United Kingdom, respectively, or elsewhere, including judgments predicated
upon the civil liability provisions of the securities laws of the United States or any state or territory
within the United States.
The Republic of Slovenia reserves the right to plead sovereign immunity under the United States
Foreign Sovereign Immunities Act of 1976 (the ``Immunities Act'') with respect to actions brought
against it under United States federal securities laws or any state securities laws. In the absence of a
waiver of immunity by the Republic of Slovenia with respect to these actions, it would not be
possible to obtain a United States judgment in such an action against the Republic of Slovenia unless
a court were to determine that the Republic of Slovenia is not entitled under the Immunities Act to
sovereign immunity with respect to such action.
It may not be possible to enforce in the courts of the Republic of Slovenia certain foreign court
judgments (including a judgment obtained from a United States court) against the Republic of
Slovenia that is predicated upon the laws of a foreign jurisdiction in certain circumstances.
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There is a risk that, notwithstanding the limited waiver of sovereign immunity by the Republic of
Slovenia in connection with the Notes, a foreign court judgment would not be recognised in the
Republic of Slovenia or enforced against certain assets of the Republic of Slovenia in certain
jurisdictions, including the Republic of Slovenia (including the imposition of any arrest order or the
attachment or seizure of such assets and their subsequent sale), without the Republic of Slovenia
having specifically consented to such enforcement at the time when the enforcement is sought.
It should be noted that regardless of any waiver of immunity by the Republic of Slovenia, certain
assets of the Republic of Slovenia may not be subject to execution under the provisions of Slovenian
law, including, but not limited to, mineral and other natural resources; real property, installations,
equipment and other property necessary for the performance of the functions of the Republic of
Slovenia; real property and other movables designated for use for national defence purposes; real
property, installations, equipment and other property necessary for the performance of public services;
and receivables of the Republic of Slovenia in respect of taxes and other mandatory duties.
FORWARD-LOOKING STATEMENTS
This Offering Circular includes forward-looking statements. All statements other than statements of
historical fact included in this Offering Circular regarding, among other things, Slovenia's economy,
fiscal condition, politics, debt or prospects may constitute forward-looking statements. In addition,
forward-looking statements generally can be identified by the use of forward-looking terminology such
as ``may'', ``will'', ``expect'', ``project'', ``intend'', ``estimate'', ``anticipate'', ``believe'', ``continue'',
``could'', ``should'', ``would'' or the like. Although the Issuer believes that expectations reflected in its
forward-looking statements are reasonable as at the date of this Offering Circular, there can be no
assurance that such expectations will prove to have been correct. The Issuer undertakes no obligation
to update the forward-looking statements contained in this Offering Circular or any other forward-
looking statement it may make.
For the Issuer, in addition to the factors described in this Offering Circular, including, but not
limited to, those discussed under ``Risk Factors'', the following factors, among others, could cause
future conditions to differ materially from those expressed in any forward-looking statements made
herein:
External factors, such as:
*
the impact of the international economic environment on the Slovenian economy, including
liquidity in the international financial markets and volatility in international equity, debt and
foreign exchange markets;
*
interest rates in financial markets outside the Republic of Slovenia;
*
the impact of any changes in the credit rating of the Republic of Slovenia;
*
the impact of changes in the international prices of commodities; and
*
economic conditions in the Republic of Slovenia's major export markets.
Internal factors, such as:
*
general economic and business conditions in the Republic of Slovenia;
*
the level of domestic debt;
*
an ageing population and an expansive pension system;
*
the level of foreign direct and portfolio investment; and
*
the level of Slovenian domestic interest rates.
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EXCHANGE RATES
The table below shows the high and low European Central Bank (``ECB'') rates for the euro versus
the U.S. dollar for each respective year and the rate at the end of the year. The average amounts set
forth below under ``Average'' are calculated as the average of the ECB rates for the euro versus the
U.S. dollar on the last business days of each month for each respective year.
Low
High
Average
End of Year
(U.S. dollars per euro)
2008
1.2460
1.5990
1.4726
1.3917
2009
1.2555
1.5120
1.3963
1.4406
2010
1.1959
1.4563
1.3257
1.3262
2011
1.2889
1.4882
1.4000
1.2939
2012
1.2089
1.3454
1.2848
1.3194
The table below shows the high and low ECB rates for the euro versus the U.S. dollar for each
month during the six full months prior to the date of this Offering Circular.
Low
High
(U.S. dollars per euro)
October 2012
1.2877
1.3120
November 2012
1.2694
1.2994
December 2012
1.2905
1.3302
January 2013
1.3012
1.3550
February 2013
1.3077
1.3644
March 2013
1.2768
1.3090
April 2013
1.2826
1.3174
The euro versus the U.S. dollar ECB exchange rate on 30 April 2013 was U.S.$1.3158 per c1.00.
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TABLE OF CONTENTS
Page
OVERVIEW
1
RISK FACTORS
7
TERMS AND CONDITIONS OF THE 2018 NOTES
15
TERMS AND CONDITIONS OF THE 2023 NOTES
26
THE GLOBAL CERTIFICATES
37
USE OF PROCEEDS
41
THE REPUBLIC OF SLOVENIA
42
THE SLOVENIAN ECONOMY
48
PUBLIC FINANCE
61
PUBLIC DEBT
69
MONETARY AND FINANCIAL SYSTEM
74
BALANCE OF PAYMENTS AND FOREIGN TRADE
90
TAXATION
95
CLEARING AND SETTLEMENT ARRANGEMENTS
98
SUBSCRIPTION AND SALE
102
TRANSFER RESTRICTIONS
105
GENERAL INFORMATION
107
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OVERVIEW
The following is an overview of certain information contained in this Offering Circular. It does not
purport to be complete and is qualified in its entirety by the more detailed information appearing
elsewhere in this Offering Circular. Prospective investors should also carefully consider the information
set out in the section entitled ``Risk Factors'' in this Offering Circular prior to making an investment
decision. Capitalised terms not otherwise defined in this overview have the same meaning as elsewhere in
this Offering Circular. See ``The Republic of Slovenia'', ``The Slovenian Economy'', ``Public Finance'',
``Public Debt'', ``Monetary and Financial System'' and ``Balance of Payments and Foreign Trade'' for a
more detailed description of the Issuer.
Overview of the Republic of Slovenia
General
Slovenia is a European country with a total land area of 20,256 square kilometres. It is bordered by
the Republic of Croatia to the south and southeast, Austria to the north, Italy to the west and
Hungary to the northeast and has a coastline on the Adriatic Sea of 48 kilometres to the southwest.
Slovenia has a population of approximately 2.05 million and its capital, Ljubljana, has a population
of approximately 280,600.
On 23 December 1991, Slovenia adopted a constitution (the ``Constitution'') that established it as a
parliamentary republic with a National Assembly (drzavni zbor) and a National Council (drzavni svet),
a Government (vlada) which holds executive power and is elected by the National Assembly, a
President as head of state and an independent judicial system. A two-thirds vote of all members of
the National Assembly is required to amend the constitution.
Slovenia became a member of the North Atlantic Treaty Organisation (``NATO'') on 29 March 2004
and the EU on 1 May 2004. In 2005, Slovenia held the presidency of the Organization for Security
and Co-operation in Europe. It adopted the euro as its official currency on 1 January 2007. It joined
the Schengen Agreement (providing for the removal of systematic border controls between the
participating countries) on 21 December 2007 and became a member of the Organisation for
Economic Co-operation and Development (the ``OECD'') on 21 July 2010.
Economy
Prior to its independence in June 1991, Slovenia benefited from the high tariffs of the Socialist
Federal Republic of Yugoslavia (``SFRY'') and a protected internal market within the SFRY.
However, the gradual stagnation of the SFRY economy during the 1980s and the subsequent break-
up of the SFRY had a marked impact on Slovenian trade with the other republics of the SFRY.
Following independence, Slovenia began a transformation into a modern market economy. After the
first two years of coping with a recession resulting from its transition into a market economy and
establishing its own sovereignty, the economy experienced positive growth from 1993 until 2008. The
main driver of growth in this period was exports, whose contribution to GDP increased from
approximately 50 per cent. in 1993 to almost 70 per cent. in 2008, while investment also recorded
notable growth. As measured by ``value added'' to the Slovenian economy, the main contributor to
growth was manufacturing, while market services, such as retail trade, also contributed significantly to
growth.
The Slovenian economy is highly export-oriented and has been significantly affected by the global
financial crisis. With the sharp fall of the global economy, exports and investment initially decreased
substantially, falling 16.7 per cent. and 23.2 per cent., respectively in 2009, while GDP fell 7.8 per
cent. The decrease in investment was mainly a consequence of falling construction investment, which
had recorded substantial growth in the pre-crisis years. Following the sharp decline in 2009, economic
activity recovered in 2010 and 2011, although the recovery was slow. The rebound in 2010 was
primarily due to a somewhat more favourable international economic environment, with exports
increasing 10.1 and 7.0 per cent. year-on-year in 2010 and 2011 respectively, although domestic
demand remained weak, largely as a result of reduced activity in the construction sector and related
activities. In 2012, the real economy declined 2.3 per cent., mainly as a result of a continued decrease
in investment activity, while government and private consumption also fell due to continued labour
market tensions and implementing the first stages of the government's fiscal consolidation plan. Since
2011, Slovenian enterprises have been deleveraging and unemployment levels have been increasing. In
addition, risks of recession continue to stem from Slovenia's trade links to the Eurozone, its GDP
growth determinants and its integration into global financial markets.
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BonP


Statistical Data
The following selected economic information is qualified in its entirety by, and should be read in
conjunction with, the detailed information appearing elsewhere in this Offering Circular:
Year ended 31 December(1)
2008
2009
2010
2011
2012
(d millions, except for percentages)
Nominal GDP
37,244.4
35,556.1
35,607.0
36,171.8
35,466.3
Real GDP growth (%)
3.4
(7.8)
1.2
0.6
(2.3)
Real exports growth (%)
4.0
(16.7)
10.1
7.0
0.3
Real imports growth (%)
3.7
(19.5)
7.9
5.2
(4.3)
Unemployment (ILO
methodology) (%)
4.4
5.9
7.2
8.2
8.9
Consumer prices growth (%)
2.1
1.8
1.9
2.0
2.7
General government balance
(702.5)
(2,217.2)
(2,111.5)
(2,297.8)
(1,417.7)
as a % of GDP
(1.9)
(6.2)
(5.9)
(6.4)
(4.0)
Total revenues
15,808.6
15,328.4
15,848.3
16,064.5
15,959.3
as a % of GDP
42.4
43.1
44.5
44.4
45.0
Total expenditures
16,511.1
17,545.5
17,959.8
18,362.3
17,377.0
as a % of GDP
44.3
49.3
50.4
50.8
49.0
General government debt
8,180.1
12,449.5
13,736.7
16,954.4
19,189.4
as a % of nominal GDP
22.0
35.0
38.6
46.9
54.1
Note:
(1) Slovenia Excessive Deficit Procedure (``EDP'') Reports are revised each April and October.
Source: SORS; Ministry of Finance, EDP Report, April 2013.
2
c108278pu020
Proof
4:
7.5.13_22:14
B/L
Revision:
0
Operator
BonP


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