Connect to share and comment

IMF advisor set to head Slovenia's central bank

PlacardEnlarge
(Globalpost/GlobalPost)

Slovenia's parliament will on Thursday start the procedure for appointing International Monetary Fund (IMF) advisor Bostjan Jazbec as central bank's governor.

The appointment comes at a difficult time for the tiny eurozone country, which is struggling with a banking crisis that could lead it to follow Cyprus in needing bailout.

Slovenian parliament credentials' commission will meet on Thursday to examine Slovenian President Borut Pahor's proposal to appoint Jazbec after current central bank governor Marko Kranjec's mandate expires in mid-July.

Jazbec, an IMF senior advisor to Kosovo's central bank and associate economy professor at the Ljubljana University, has already received the backing of the main parliamentary parties.

If the parliamentary commission approves Jazbec's candidature, parliament will vote on his appointment at the next session, likely to take place next week.

In order to become Slovenia's central bank's governor, who also sits as a member of the European Central Bank's managing board, Jazbec has to receive 46 votes in the 90-seat parliament.

Slovenia, once a model EU and eurozone newcomer, has struggled against recession and serious troubles in its banks, which are mired in bad debt.

That has prompting concerns it might be the next country to seek a bailout.

On Wednesday, the centre-right opposition Slovenian People's Party (SLS) spokesman Gregor Kosir said Jazbec favoured the creation of a bad-bank to restructure the country's banking system.

The former centre-right government backed that project last year.

Prime Minister Alenka Bratusek said Wednesday that while her government would continue implementing the bad-bank bill, it would amend it to increase the roll of the central bank.

bk/pfe/jj

http://www.globalpost.com/dispatch/news/afp/130327/imf-advisor-set-head-slovenias-central-bank