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Cabinet and bank representatives meet over guarantee of bank deposits

Should the deposit protection fund lack money to pay out compensation for inaccessible deposits, the state might provide a helping hand.

Should the deposit protection fund lack money to pay out compensation for inaccessible deposits, the state might provide a helping hand.

However, Finance Minister Ján Počiatek emphasised after a meeting with bank sector representatives on October 14, no-one anticipates such a catastrophic scenario. He explained that the only way for the state to help in the event of such a disaster was if it itself would borrow money instead of the fund and subsidise it through some kind of refundable financial assistance. The minister highlighted Slovakia's fair access to loans with regard to the country's approaching entry to the euro club and improved rating. In case of an emergency scenario, Slovakia would follow in the footsteps of all other countries, the SITA news agency wrote.

Regina Ovesny-Straka, president of the Slovak Banking Association, mentioned that a 100-percent guarantee of bank deposits is a significant signal to people.

Ivan Šramko, governor of the National Bank of Slovakia (NBS), stressed the fact that the deposit protection fund had successfully handled the collapse of four Slovak banks in the past, when it paid out Sk20 billion (€663.9 million). In his words, it is obvious that the deposit protection fund is able to function under standard circumstances as a system; it will be able to pay out deposits should such a situation occur.

As for legislation, Fico promised on October 14 to do anything in the Cabinet's power to ensure that the draft bill, designed to ensure unlimited guarantee of personal deposits in Slovak banks, takes effect as soon as possible after it receives the go-ahead from parliament. SITA

Compiled by Zuzana Vilikovská from press reports
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