Golob: Banks to present proposals for flood-hit people in 48 hours

the meeting was aimed at reviewing the situation post-floods, and the measures insurers and banks have taken so far or will take in order to alleviate the hardships of the affected population, Golob's office meanwhile said in a press release.

The government will adopt an emergency bill this week, the office said, adding that "it is important for the government and the banking and insurance sectors that people's trust in both systems is preserved".

While bank representatives gave no statements after the meeting, public broadcaster Radio Slovenija reported that banks are already deferring loan repayments for clients who are not able to repay them due to the floods.

Blaž Brodnjak, the chairman of the country's largest bank NLB, said that clients should contact the relevant NLB offices and make arrangements with advisers, adding that the bank will not charge loan instalments in the meantime.

The Slovenian Insurance Association, on the other hand, issued a statement after the meeting saying the most important thing at the moment is to focus on helping the affected people and ensure the conditions for the fastest possible recovery.

It said that the sector and the state should stand together and that an effective reconstruction programme needs to be drafted. They support the idea to establish a special fund for this purpose.

"Insurance companies and the government have the joint interest in achieving as greater insurance coverage as possible for both the population and businesses in the future."

The association said that its members are trying to process all cases as quickly as possible, and they have introduced a simplified procedure to resolve claims for damages, such as claims for reimbursement of the costs of cleaning.

The damages that insurers will have to pay out this summer in relation to natural disasters will be record high.

The overall impact of the floods on their business is yet to be estimated, as the damage is still being assessed, but a deterioration is certainly expected. Insurers are now focused on the autumn, which is the main flood season in Slovenia.

They noted that payments to policyholders based on insurance contracts will not be jeopardised under any circumstances.

This is because the insurers in Slovenia are "traditionally conservative ... and have high solvency requirements, also due to Slovenia being exceptionally prone to natural disasters", and there are also safe forms of protection such as reinsurance.

As for the idea to create a special fund for post-flood reconstruction, the sector agrees that a proper solution should be found for the most affected areas and that reconstruction work should be carried out as soon as possible.

Insurers have responded to the call for aid in organising damage assessments at municipal level, the association said, adding that donations and other forms of assistance to the affected and at-risk communities will also be provided.