BRATISLAVA, March 11, (WEBNOVINY) – The Ministry of Finance suggests a mergier of the state-run Export-Import Bank (Eximbanka) and the guarantee and development bank Slovenska Zarucna a Rozvojova Banka (SZRB). This stems from a material which the Cabinet should have on the table on Wednesday. According to the ministry, the two banks have in some cases an identical or similar scope of activities. The merger would eliminate duplicity in the banks’ activities, cut costs and significantly optimize operational costs. “Furthermore, for the future, potential political influence in the company’s bodies and following economic devastation would be restricted,” the ministry says in the proposal.
The finance department is currently analyzing the processes and effectiveness of this decision. Necessary steps in the form of legislative changes should be known by the end of 2011. The Slovak Banking Association commented on the proposal that the decision to merge the two institutions is fully in the hands of their shareholders, i.e. the state.
Eximbanka was established in 1997. It is a specialized state financial institution, which supports import and export activities of local exporters and importers by financing export credit, credit insurance activities and refinancing export credit, as well as financing import credit aimed at increasing the competitive strength of local products and services, and supporting growth of Slovakia’s foreign trade.
SZRB started operating in Slovakia in 1991 as a state-run financial institution founded by the Finance Ministry. In late October 2002, the bank was transformed to a joint-stock company. The Finance Ministry is the only shareholder in SZRB. It provides assistance to small and medium-sized entrepreneurs and corporate entities in the form of guarantees, mid- and long-term credits and non-refundable contributions.
SITA
