We test the hypothesis of procyclicality of banking sector results in the Baltic economies. Our estimates suggest that a slowdown in economic activity is likely to accelerate the growth of the nonperforming loan (NPL) ratio in the Baltics. They also support the hypothesis that a rapid growth of credit harms loan performance, most likely due to soft-loan constraints and macroeconomic overheating. Higher concentration in banking market coincides with relatively higher nonperforming loans.
COBISS.SI-ID: 10100252
After the introduction of the Euro a considerable increase in prices was registered. Weak competition in certain sectors and an increase in demand were two internal factors that also contributed to inflation. The oligopolistic position of basic consumer goods suppliers made the rise of trade margins possible. The prices of producers did not essentially affect the rise of the harmonized price index, while retail prices, together with the increase of trade margins, contributed to the start of an inflationary spiral in 2007.
COBISS.SI-ID: 10121244
Rapid credit growth has been one of the most pervasive developments in recent years in Central and Eastern Europe. The procyclicality of banking sector performance and high economic activities growth could be a signal of an economy overheating and therefore a slowdown in economic activity is likely to accelerate the growth of the non-performing loan ratio in the Baltic States, Bulgaria and Romania.
COBISS.SI-ID: 30481709
Privatized pension system coincides with investment risks, higher administrative costs, and inability of private markets to provide retirees with affordable, indexed and certain annuities. Namely, private sector may not provide enough investment projects to efficiently absorb mandated pension savings and the expected pension income is subject to a number of risks: poor and volatile investment returns, longevity, and inflation eroding the purchasing power of pensions.
COBISS.SI-ID: 10121756
Paper describes current situation and short-term forecast for Slovene economy. The negative impact of global fianancial crisis on Slovenia is presented and proposals are made for measures to mitigate these negative consequences. Processes and procedures in the world economy against crisis are presented next and paper concludes with the proposals for changes in the economic system in direction of solidarism.
COBISS.SI-ID: 29764141