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Slovenia: 600 mln for the new greek bailout

27. February 2012. | 11:57

Source: Slovenian Times/STA

After the second bailout package for Greece worth EUR 130bn was agreed in Brussels, Finance Minister Janez Šušteršič announced that Slovenia would contribute about EUR 600m in guarantees.

After the second bailout package for Greece worth EUR 130bn was agreed in Brussels, Finance Minister Janez Šušteršič announced that Slovenia would contribute about EUR 600m in guarantees.

"If the measures are implemented in full, the part falling to Slovenia will be slightly above EUR 600m, according to current estimates," Šušteršič told the press in Brussels.

He stressed that Slovenian lawmakers would need to agree to the guarantees and any potential interest rate cuts on Greek debt. He expects the parliament to begin the debate in March.

The second bailout package will include unused funds from the first bailout package agreed in 2010. "Those parts of the aid that were not used will be included in this sum (130bn)," the minister explained.

It is not clear however in what way the sums would be transferred between the bailout packages.

Under the new bailout package, the European Central Bank and national central banks will also distribute profits from discounted bond-buying on the secondary markets. This will generate extra funds that can be used to help Greece.

"The role of central banks is tied primarily to their investments into Greek bonds, where certain income was generated and can now be used for further help to Greece," Šušteršič said.

Asked about the amount of Greek bonds in Slovenia's central bank portfolio, the minister said the central bank held "relatively" few such bonds. He stressed that any such measures would have to be agreed with the central bank, as the government held no mandate to take decision for the central bank.

Under the new bailout package, private holders of Greek debt will take losses of 53.5% on the value of their bonds, which makes about EUR 107bn, according to estimates.

The package aims to ensure that Greece will reduce its debt from 160% of GDP to 120.5% by 2020.

Šušteršič also responded to criticism that the bailout only meant postponing an inevitable Greek default. "We all hope that this is not only a postponement, but also a chance for Greece to implement the reforms it promised to," he said.

But he added much would depend on how the economic situation in Europe develops. "There simply wasn't a better offer on the table, neither yesterday nor in the past years," the minister stressed.


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27. February - 04. March 2012.