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Slovenia Business Week no. 33/2004: FDI Promotion Act Enters into Force

The main purpose of the act is to create an institutional basis for an efficient promotion of FDI and to accelerate the internationalisation of Slovenian companies, especially small and medium-sized enterprises

A new act on the promotion of foreign direct investment (FDI) and the internationalisation of companies took effect Friday, 20 August. The government hopes it will boost incoming FDI and help domestic companies improve their competitiveness and expand to foreign markets.

The main purpose of the act is to create an institutional basis for an efficient promotion of FDI and to accelerate the internationalisation of Slovenian companies, especially small and medium-sized enterprises.

The act is designed to promote investments which will have positive spillover effects on other parts of the economy.

One of the law's linchpins is SIT 1.24bn (EUR 5.17m) available for grants within the framework of FDI for this year and 2005. The government s allowed to co-fund up to 10 percent of an investment.

The objectives of state funding are to create new jobs, transfer knowledge and technologies, achieve balanced regional development and create synergies in promoting the cooperation of foreign investors with domestic companies.

Among measures to promote FDI, the act creates a scheme offering free information, counselling and other services to foreign investors, as well as the marketing of Slovenia as an investment destination.

The promotion of FDI will be in the hands of a public agency, which must be set up by the government within a year; until then, the Trade and Investment Promotion Agency will be in charge of such activities.

Source: Slovene Press Agency STA

Author: Branka Murn