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Slovenia Business Week no. 23: D&B Says Gradual Privatisation Good for Slovenia

International rating firm Dun & Bradstreet (D&B) stated in its latest report that gradual privatisation is working well for Slovenia, as it has enabled the country to avoid "the sometimes severe dislocations suffered by other transition economies"

International rating firm Dun & Bradstreet (D&B) stated in its latest report that gradual privatisation is working well for Slovenia, as it has enabled the country to avoid "the sometimes severe dislocations suffered by other transition economies".

However, the report urges the government to speed up the process, as "the competitiveness gains enjoyed by the economy could have been greater if the state had allowed the private sector to play a more prominent role", reads the report on Thursday, 8 June.

Despite the confirmation of Slovenia's entry into the eurozone, the country's rating remained unchanged at DB2c, keeping it on top in Eastern Europe alongside Slovakia.

D&B moreover believes that the resignation of Development Minister Joze P. Damijan "is unlikely to herald an end to the reform process". Damijan resigned in March after taking over the office on 1 January 2006.

Additionally, D&B believes that the recently signed Development Partnership pact between almost all of the parliamentary parties bodes good for the reforms, as "seeking broad consensus has been the mainstay of Slovenia's successful reform process".

D&B moreover cites a survey by the Slovenian Employment Service which states that a total of 7,328 jobs will be lost in 2006 "as a result of redundancies and bankruptcy". Nevertheless, "D&B expects net job creation to be sufficient to lead to a further decline in the unemployment rate, to 8.4% by end-2007".

Source: Slovene Press Agency STA

Author: STA