National-Scale Credit Clearing Scheme in Slovenia

= "There has been a national-scale credit clearing scheme in Slovenia since 1991". [1]

Interview

Source: From a conversation of Tom Woodroof of Lowimpact and Mutual Credit Services with Tomaž Fleischman of Informal Systems about Credit Clearing.

" Could you tell me a bit about the history of credit clearing in Slovenia? Was there anything special about Slovenia that enabled it to happen there?

Tomaž Fleischman: In 1991 Slovenia broke away from former-Yugoslavia. The system was used in a more basic form in Yugoslavia previously. The credit clearing system was available not just to banks (as in the West), but to everyone. Slovenians were used to liquidity-saving mechanisms. Early iterations were not very efficient – as computers were not as advanced as they are now. But mathematically, it was very efficient – as in, it’s impossible to save more liquidity using any other method. This made the Slovenian system work very well for people. But it was also the timing. We were a new nation, not recognised by the global community. We didn’t have a national currency. We used coupons that were printed on left-over paper from coupons that were printed for the winter olympics in Sarajevo. These coupons had no names, dates or signature of a central bank governor. We used these coupons for one year. It was a tough time. In these circumstances, alternative ways to settle obligations / debts were more than welcome.

In the first year of operation, this system saved approximately 7.5% of the country’s GDP. I’ve never heard of an alternative financial system that’s had such a huge impact on the national economy."

(https://www.lowimpact.org/posts/how-credit-clearing-can-change-the-global-monetary-system-interview-with-tomaz-fleischman-of-informal-systems)

More information

• article via https://www.lowimpact.org/posts/incredible-new-research-how-to-save-small-businesses-post-covid

• Credit Clearing