Slovakia will have to pay a first instalment of almost €132 million towards the founding capital of the European Stability Mechanism (ESM), the eurozone's new permanent rescue mechanism, within 15 days of the date when the agreement to set it up takes effect.
The Finance Ministry has already submitted a draft bill regulating Slovakia's position within the new rescue mechanism for review by various ministries, the SITA newswire wrote. Slovakia should pay a second instalment of almost €132 million into the rescue fund later this year. Later, Slovakia should settle further three instalments in 2013 and 2014 amounting to almost €396 million, reads a clause on impacts to the draft bill on the ESM.
To settle the first instalment, amounting to €131.8 million, the government plans to use existing state revenues without further increasing the national debt. However, to pay later instalments of the founding capital, further debt will have to be issued. In addition to the €659.2 million in five equal instalments that Slovakia will have to pay into the ESM as its paid-up stake, it will be on call to contribute more than €5 billion in extra funds, as needed.
Compiled by Zuzana Vilikovská from press reports
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