BRATISLAVA, October 17, (SITA) — Slovak President Ivan Gasparovic signed and thus ratified the enhanced eurozone bailout fund that the Slovak Parliament approved on Thursday last week. The presidential office informed that “the president signed and ratified the annex to the framework agreement on the European Financial Stability Facility (EFSF) between the Kingdom of Belgium, Federal Republic of Germany, Republic of Estonia, Ireland, Hellenic Republic, Kingdom of Spain, French Republic, Italian Republic, Republic of Cyprus, Grand Duchy of Luxembourg, Republic of Malta, Kingdom of the Netherlands, Republic of Austria, Portuguese Republic, Republic of Slovenia, Slovak Republic, Republic of Finland and the European Financial Stability Facility.“
Slovakia has eventually joined the remaining sixteen eurozone countries that have already ratified the enhancement of the EFSF bailout fund. On Thursday, October 13, deputies of the Slovak parliament approved the annex to the framework agreement on the European Financial Stability Facility (EFSF) concerned mainly with enhancing the capacity of the bailout fund and its competencies. The Cabinet of Iveta Radicova, now in a caretaker role, after it lost a parliamentary vote of confidence on Tuesday, October 11, over the failed first bailout fund vote, repeatedly passed the annex to the framework agreement on the European Financial Stability Facility (EFSF) on Wednesday. The agreement was subsequently submitted to parliament.
The overhauled rescue fund based on the annex to the framework agreement on the European Financial Stabilization Facility (EFSF) is to help not only states but also banks. The proposed increase in its lending capacity is to secure that the rating of its liabilities remains at the top level.
Eurozone member states established ESFS on May 9 of last year as a special purpose vehicle financed by members of the eurozone to combat the European sovereign debt crisis. The original lending capacity of the facility totaled EUR 440 million while Slovakia’s guarantees amounted to EUR 4.372 billion. Eurozone leaders later decided to increase guarantees to almost EUR 780 million, which was to secure originally intended effective lending capacity of the instrument at EUR 440 million. The annex also counts on participation of Estonia and increases Slovakia’s guarantees in enhanced bailout fund to EUR 7.7 billion
SITA