3 Issuing costs of state guaranteed bonds - Financial Risk and ...

Annex 1 Eligibility criteria for state guarantees
A1.1.11 Slovenia 34
Implementation date of scheme
4 December 2008
End date of entry into scheme
30 June 2010 (extended from 12 June 2009)
Fee for instrument
Fee for short term (less than 1 year) instruments: 50 bps
Fee for medium term (between 1 and 5 years) instruments:
(i) for banks with CDS data the fee is the median value of the 5-year CDS spread over the
period 1 January 2007 to 31 August 2008 plus 50 bps;
(ii) for banks without CDS data or representative CDS data, but with a credit rating, the fee is
the median value of the 5-year CDS spread during the above mentioned period for the
rating category of the banks concerned, based on a representative sample of euro
area large banks plus 50 bps;
(iii) for banks without CDS data and without credit rating, the fee is the median 5 year CDS
spreads over the same period for the lowest rating category plus 50 bps;
(iv) for guarantees for covered bonds, the fee is the institution's CDS spread and the add-on
fee of 50 bps, which can be decreased by the Slovenian authorities.
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The CDS element is set at 25 bps for AAA-rated institutions, 40bps for AA, 45 bps for A, 50 bps
for BBB, 55 bps for BB and below - as regards, the credit institutions with a rating category of A
and below, the corresponding element may be adjusted by the Slovenian authorities,
depending on the rating of the State itself.
Maximum tenor
5 years
Institution criteria
Credit institutions incorporated in the Republic of Slovenia (including the Slovenian subsidiaries of
foreign financial institutions) that are solvent.
Instrument eligibility
Instruments that can be covered by the guarantee are all liabilities with exception of structured
financial instruments, subordinated liabilities and liabilities versus parent companies or other
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For details see:
http://ec.europa.eu/competition/state_aid/cases/228071/228071_906825_3_1.pdf;
http://ec.europa.eu/eu_law/state_aids/comp-2009/n651-09-en.pdf.