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State weighing bonuses to mortgage loans

STATE bonuses for about 10,000 clients who signed contracts with banks in the form of mortgages for an unspecified piece of real estate are not endangered.

The Finance Ministry denied recently published information that the state was refusing to pay the bonuses. The value of the loans is estimated at about Sk8 billion (€190 million).

The ministry's spokesman, Peter Papanek, said that the ministry was not reconsidering the bonuses as such but was questioning their amount. Final decisions on the matter will be made based on the results of an analysis that the ministry has ordered.

It is believed, however, that lower state bonuses may be distributed to those clients who, before the planned decrease of state contribution in mid-2003, made use of banks' offers for mortgage loans for an unspecified real estate and did not back the loan with an existing real estate but wanted to back it with the one they intended to purchase with the loan.

Compiled by Martina Pisárová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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