| LJUBLJANA, April 20
LJUBLJANA, April 20 Slovenia moved to put its
independent central bank under some, limited supervision on
Thursday, responding to accusations that the bank had demanded
too much state capital for domestic banks to ward off a
potential debt crisis four years ago.
The government approved changes to proposed legislation that
would authorise the Court of Audit, a state body that supervises
public spending in the country, to have some oversight of the
Bank of Slovenia's business activities.
Tilen Bozic, state secretary at the ministry of finance,
said the bank would remain independent but the Court of Audit
would now be able to review decisions that lead to spending of
The changes to the law, which are expected to be passed by
parliament in the coming months, would also enable the Court of
Audit to review the central bank's decisions over the past 10
But the court will not be able to review monetary policy and
those activities of the Bank of Slovenia which are part of the
activities of the European system of central banks, Bozic said.
Slovenia has been a member of the euro zone since 2007.
The government moved to increase supervision of the bank
after policymakers came under fire from a number of local
analysts, politicians and media about the money it required for
domestic banks in 2013.
In that year the government had to pour more than 3 billion
euros into local banks to prevent them from collapsing under a
large amount of bad loans. That enabled Slovenia to narrowly
avoid an international bailout.
The central bank claims all procedures of the 2013 bank
overhaul were in line with legislation, including the decision
to annul shares and subordinated bonds in troubled banks.
It gave no immediate comment regarding the proposed legal