The process of nominal convergence has been accompanied by robust economic growth. Real GDP growth in Slovenia has been well above the euro area in the recent years. Growth has been underpinned by domestic demand as well as strong exports, which reflects the increased integration of Slovenia with the EU and the euro area.
As a result, European financial institutions with large holdings of the government bonds in question have faced difficulties raising funds from the market due to rising concerns about their creditworthiness, thereby making it inevitable that they restrain lending in order to maintain liquidity.