Slovak cabinet okays changes in EFSF bail-out fund

The Slovak government approved changes applying to the European Financial Stability Facility (EFSF) as agreed by leaders of the eurozone countries on July 21, the TASR newswire reported after the cabinet session on September 7.

The Slovak government approved changes applying to the European Financial Stability Facility (EFSF) as agreed by leaders of the eurozone countries on July 21, the TASR newswire reported after the cabinet session on September 7.

The annex was passed without votes of ministers from the Freedom and Solidarity (SaS) party, a member of the four-party coalition government, which maintains a negative stance on the bailout fund. The changes, such as an increase in the volume of guarantees and boosting the powers of the temporary rescue fund, are now headed toward an uncertain outcome in parliament due to the position of SaS.

Under the proposed rules, the volume of guarantees that could be offered by ESFS is to increase from €440 billion to €779 billion and Slovakia’s share would increase from €4.37 billion to €7.72 billion. If the changes are ratified by all countries, EFSF will be enabled to purchase government bonds on the secondary market, provide help in recapitalisation of financial institutions and issue precautionary credit to states if there is the possibility that they will be shut out of private credit markets.

Source: TASR

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

Get daily Slovak news directly to your inbox

Top stories

More tips for outings in Bratislava during the lockdown

Walks along the Danube bank offer a feeling of being far from the city rush.

This place, part of Ovsištské Lúky (Ovsište Meadows) in Petržalka, is still Bratislava.

Roundup: Fairytale app that makes children read

An award-winning design by a Slovak architect and a trip to Zádielska dolina valley. Here’s your latest roundup.

A man wearing a face covering sits in an armchair on the snow-covered Main Street in Košice on January 13, 2021.

Police investigate surveillance of journalist, IPI calls for utmost seriousness

Police launch criminal prosecution after Denník N reporter said she was followed and opposition MP Robert Fico wrote about her private life.

l-r: Head of Let's Stop Corruption Foundation Zuzana Petková, journalist Monika Tódová, journalist Adam Valček, and Xénia Makarová of the Let's Stop Corruption Foundation