Slovakia's cash contribution to the permanent European Stability Mechanism (ESM) will amount to €659.2 million, according to a proposed law on the ESM approved by the government on Thursday, May 31.
The deposit will be paid in five instalments, the first of which (€131.84 million) will be paid as early as 15 days after the ESM Agreement comes into effect. The legislation has still to be approved by parliament, however. The Finance Ministry states in the material it submitted that the second instalment of the same amount will be paid later this year, probably in October. "The Slovak Republic should pay the remaining three instalments, totalling €395.52 million, over the course of 2013-14," reads the document, as quoted by the TASR newswire.
State financial assets will be used for the first instalment, so it should not have any impact on the deficit or public debt. However, for the subsequent payments, the volume of public debt financing will have to be increased, and this will have an adverse effect on Slovakia's public debt.
Compiled by Zuzana Vilikovská from press reports
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