Slovakia will send its first two cash payments to the European Stability Mechanism (ESM) worth almost €264 million in total by October 12, and disburse another three instalments of the subscribed share capital of €396 million within 2013 and 2014, the government approved on Wednesday, October 3.
The ESM capital is divided into two parts: first is the paid-in capital (€80 billion), with Slovakia contributing almost €660 million (in cash) divided into a number of instalments. Second is the capital subscription, which has been calculated to reach €5.786 billion in Slovakia's case - from the overall subscribed ESM share capital of €700 billion. Slovakia is to obtain the money needed for ESM's in-paid capital through issuing government bonds. The instalments will not have an influence on the deficit of public finances, but will increase Slovakia's state debt.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
4. Oct 2012 at 10:00