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Cabinet meets to discuss finances

A meeting between economic ministers and financial experts to consider problems regarding fiscal policy, payment settlements, insolvency and the restructuring of commercial banks began September 5 in Piešťany.

The government is contemplating using 30bn Sk in bank-created depreciation reserves, as well as resources from the state budget and those of indebted companies to solve excessive liability problems in those companies. Government ministers proposed using the banks' depreciation reserves to repay the debts of companies operating in necessary and promising fields.

They also recommended that the law on liquidation be amended because, according to Prime Minister Vladimír Mečiar, approximately 20% of Slovak companies are on the brink of bankruptcy.

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