The Slovenian Minister of Finance and President of the EU Economic and Financial Affairs Council (ECOFIN), Dr Andrej Bajuk, has welcomed the entry into force of the new Memorandum of Understanding on co-operation between the Financial Supervisory Authorities, Central Banks and the Finance Ministries of the European Union on cross-border financial stability on 2 June 2008, when it was signed by all 113 institutions. Dr Bajuk underlined, "The agreement on the Memorandum of Understanding on Cross-Border Financial Stability reached at the informal meeting of the ECOFIN Council on 4-5 April 2008 in Brdo pri Kranju constitutes a tangible achievement of the Slovenian Presidency in the area of crisis management in the EU."
The memorandum of understanding on cross-border financial stability was signed by 113 institutions who thus committed themselves to cross-border cooperation in both normal circumstances, with a view to ensuring preparedness for the management of potential cross-border crisis situations, and in crisis situations. Its main objective is to intensify cooperation between authorities involved in the management and resolution of financial crisis situations.
The memorandum of understanding defines procedures and practical arrangements for the involvement of all relevant parties in crisis situations and preparations for such situations. The procedures are based on existing legal provisions and build on existing networks of institutions. The arrangements set out in the memorandum are to be implemented by the signatories and tested in an EU-wide crisis simulation exercise in 2009.
The memorandum has been signed by all the competent Slovenian institutions: the Ministry of Finance, the Bank of Slovenia, the Insurance Supervision Agency and the Securities Market Agency. These institutions will thus take part in maintaining the financial stability of the EU, which is particularly important for cross-border financial institutions operating in Slovenia.
