Slovenian government has planned to free until year 2012 the wages of the public sector as a part of their method to lessen the public deficit gap brought about by the worldwide crisis. This was stated by Slovenia’s Prime Minister Borut Pahor last Friday.

The government believes that his is the best strategy they can do to attain sustainability in public finances. They have planned to establish an agreement with the unions before this month ends. However, if this agreement fails, the government will continue to push this strategy through asking the parliament to pass a law freezing the wages of the public sector.

Slovenia is one of the countries that were badly struck by the worldwide economic crisis because of its dependence on their exports. This caused a decline in their gross domestic product with a rise in public deficit to 5% along with higher unemployment rates. Furthermore, this was aggravated because of the closure of different private sector companies.

The main public sector unions have warned the government that they will call a strike if they push through with his wage.

Nova Ljubljanska Banka will be receiving a capital boost coming from the government of Slovenia or a strategic companion right after the European Union stress tests revealed that Slovenia’s largest lender needs to increase their fresh funds.

According to the Prime Minister of Slovenia, Borut Pahor, Nova Ljubljanska Banka needs a recapitalization and the needed money will be coming either from the Slovenian government or the taxpayers, or from a strategic partner.

The said Slovenian bank passed the European Unions inspection last July 23 that revealed that its capital ration would drop to 6.3% at the end of year 2011 which will happen in case a recession takes places plus a sovereign debt crisis. The Slovenian based bank will also ask from its shareholder an amount of 400 million euro or 517 million dollars capital increase this coming September.

NLB, that concentrates its business in the Balkans, will need about 600 million euros to repay their liabilities within the next 3 years.