Central Bank Independence in Transition Economies

12C. Limitations on Lending 

The NBS keeps the State account which may not be overdrawn. The Bank can 

grant short term credit to the Slovak Republic by purchasing Government securities. 

The amount of the credit is limited to 5% of the budget revenues and its maturity is 

limited to three months (Art. 25). The NBS may purchase the Government securities 

on the secondary market with maturity limited to one year (Art. 23). 

 

                                              

14

 Source: The National Bank of Slovakia Act (Act No 566, 18 November 1992). 

Other sources: Handbook of Central Banks in Central and Eastern Europe, BIS  1995 

 

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