Slovakia is expected to pay cash contributions of €659.2 million in four instalments within the next five years to the European Stability Mechanism (ESM), with the first instalment to be sent to Luxembourg in July 2013, according to a proposal submitted to the government cabinet by the Finance Ministry on June 20, the TASR newswire reported.
Contributions to the new mechanism, which will replace the European Financial Stabilisation Facility (EFSF) in mid-2013, will be done through underwriting shares on total share capital of €700 billion, TASR wrote. Of this sum, €80 billion will be represented by repayable shares and the remaining €620 billion by shares repayable on demand.
The overall amount of shares to be underwritten by Slovakia is €5.768 billion while the €660 million must be contributed in cash. If the contract is signed, this will not automatically mean supplementary commitments for Slovakia as the document will come into effect only when internal ratification processes within the country are completed and the necessary legislative changes have been made.
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
21. Jun 2011 at 14:00