Slovak News Back to the news
Housing Banks Up in Arms Over Plan to Scrap Housing Saving System
Saturday 02 Octtber 2010 Zoom in | Print page
Bratislava, October 2 (TASR) - Leading housing savings banks in Slovakia have voiced their opposition to Finance Minister Ivan Miklos's bill to cancel a system under which the clients can, after six years, take out their savings with the end-of-year bonus accrued over the period and use it for the purpose of their own choosing.
Prva Stavebna Sporitelna (PSS) savings bank president Imrich Beres said that with such a proposal the country reverts to the times of Vladimir Meciar's 1994-1998 government when the system was cancelled for two years before being restored by Miklos in the first government of Mikulas Dzurinda 1998-2002.
According Beres, the implications of the then law saw a 50 percent drop in the number of new housing contracts concluded and in the decrease of the housing savings pool and consequently less money used by clients as housing finance.
"The cancellation of the system would be an interference in the tried and tested system of housing savings that keeps its reliability and client trust even in crisis times," said Daniela Vlckova from Wustenrot.
According to Vlckova, it is unclear why there need to be any interference into a stable system of housing savings.
Meanwhile, the finance ministry says it is projecting to save €1.6 million in the state budget as a result of its amendment. "The backlash from housing savings banks comes as a bit of surprise to the ministry. The bill has been submitted now for comments. The ministry is ready to lend an ear to the suggestions of the firms affected, present its own and is confident that it will produce a good legal amendment," said a spokesman for the ministry.
All rights reserved. Any publishing or further dissemination of press releases and photographs from TASR's resources without TASR's prior written approval constitutes a violation of the Copyrights Act.
