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SaS Urges Government to Factor Loans to State Companies Into Deficit
Monday 24 May 2010 Zoom in | Print page
Bratislava, May 24 (TASR) - Non-parliamentary party Freedom and Solidarity (SaS) on Monday expressed concern that Slovakia's public finance deficit for 2009 was actually well in excess of the figure announced by European Union (EU) and Slovak statistics offices in April (6.8 percent), as the loans granted to state-run entities weren't factored into the figures as extra expenditures.
SaS representative Martin Chren, who represents Slovakia on the European Social and Economic Committee, told reporters that the total amount of loans, €436 million, which the Government granted to rail company ZSSK Cargo (€166 million), rolling-stock manager ZSR (€70 million), hospitals (€130 million) and Bratislava airport (€70 million), would increase the deficit to as much as 7.5 percent.
Despite the chances of repayment being next to zero, the loans haven't been factored into the deficit, said Chren, who urged the Government, the EU's Eurostat and Slovakia's Statistics Office to include the aforementioned amount in the calculations.
Former television host and SaS member Daniel Krajcer said that with such artificial reductions in the public debt the country is following the example of financially struggling Greece. "The Greeks also camouflaged their deficit. This is a betrayal of the entire country leaving finances in a parlous state," said Krajcer.
The Finance Ministry said that any decision to factor expenditures into the deficit can only be taken by Eurostat. "The loans in question were provided in line with EU legislation and Eurostat requirements," said spokesman Miroslav Smal, dismissing suggestions that public finances deficits will continue to increase. "Just as in earlier years, significant changes to the 2009 deficit can't be expected either," he said.
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