Slovakia's banking sector has invested a total of €500 million in Greek bonds, according to data from the central bank (NBS) as of May 31, NBS executive director for financial market supervision Vladimir Dvořáček said on Tuesday, June 28.
"The exposure to Greek bonds isn't too high; it represents 0.91 percent of the overall balance in the Slovak banking sector," Dvořáček said, as quoted by the TASR newswire. He stated that the sum would not represent a risk to the Slovak banking sector even if Greece were to undergo a so-called soft bankruptcy, which involves writing off part of its debts.
The NBS doesn't expect money to flow away from Slovak banks to parent banks abroad that hold larger volumes in Greece. According to Dvořáček, the central bank at the beginning of the crisis in 2008 introduced a liquid-assets ratio of below 30 days. This ratio prevents the free transfer of liquidity from taking place, he pointed out.
Compiled by Zuzana Vilikovská from press reports
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29. Jun 2011 at 14:00