The government is targeting a growth of 7.2 percent in 2017/18 as economic activities are expected to expand due to increased government expenditure from the elected local governments. Acceleration in reconstruction works will potentially increase trade deficit further at least in the near term.
On occasions, in state-owned banks funding guarantees were provided by the government in lieu of actual capital. At the time of the banking resolution in Slovenia in December 2013, the BRRD was not in effect and the decision on the establishment of a Single Resolution Mechanism was being finalized. Still, the EC, ECB, and EBA did exercise considerable influence on the resolution package.