Slovenia is well prepared for the adoption of the euro, while inflation remains its greatest challenge in meeting the convergence criteria, Andrej Rant, a vice-governor of the Bank of Slovenia, told a symposium on accounting, finances and auditing on Wednesday.
The inflation criterion is though changing with the global conditions, including the unstable prices on the oil market, Rant told participants of the three-day event, which was launched on Wednesday in Portoroz.
As Slovenia plans to introduce the common currency in 2007, the European Commission is scheduled to asses the country's implementation of the convergence criteria in the last quarter of 2006.
Confident about Slovenia's ability to meet the standards, Rant said that the country is coming close to the allowed inflation rate and has seen a boast in growth of GDP over the last year. Moreover, the rate of unemployment has dropped slightly and interest rates for loans have come down.
The interest rates of Slovenian banks can be compared to their foreign counterparts, Rant said. He added that lower interest rates are a logical move on the part of Slovenian banks in their attempt to face fierce competition and increase their market share.
The vice-governor moreover estimated that the exchange rate of the Slovenian tolar against the euro has been stable. Given an increase in Slovenia's productivity in 2004, Rant expects a rise in net wages, which though would need to be given special attention in the euro adoption preparations.
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