June 9 (SeeNews) - Slovenia's central bank booked a profit of 1.75 million euro ($1.89 million) last year, as monetary policy tightening negatively affected its financial accounts, it said on Friday.
"The implementation of expansionary policy in the years of the health crisis had a key contribution to mitigate the negative impact of the Covid-19 pandemic on the economy and the financial system, but the subsequent turn to monetary policy tightening had a negative impact on the financial performance of central banks within the euro area," the central bank said in a statement.
The central bank is now paying higher interest on the deposits of the state and commercial banks, while the yields on public and private sector bonds purchased during the health crisis are significantly lower, the central bank noted.
A total of 138.5 million euro of the collected capital buffers was used in 2022 to cover losses from the negative effects of the revaluation of securities, it added.
The central bank recorded a 37.1 million euro profit in 2021.
In accordance with the Bank of Slovenia Act, the central bank should transfer a quarter of its annual profit to the state budget, and keep the remainder in its general reserves.
($ = 0.92778 euro)