(ANSA) - LJUBLJANA, DEC. 14 - According to Slovenia's central bank governor Bostjan Jazbec, the country's economic outlook has improved, but the material conditions for sustainable growth are not yet complete. One of the main reasons for this situation are bad loans, which Slovenian banks have not yet sold out, despite the 3 billion injection that the state provided to the banking system two years ago.

''Bad loans are the main cause of the persistent credit crunch and of the impossibility of a full recovery of Slovenia's economy'', Jazbec underlined. According to Slovenia's central bank governor, ''the expansionary monetary policy based on quantitative easing, which has been put in place by the ECB, is not a magic wand and can't solve all the problems of our country''; instead, we should ''find a systemic solution based on structural reforms of the tax system and an improvement in banks' balance sheets''.(ANSA).