Spisska Nova Ves, October 8 - The Slovak Government approved a legislative proposal on deposit protection enabling 100-percent guaranteed protection for deposits in banks, thereby cancelling the 10-percent co-responsibiity of clients.

Parliament will vote on the legislation at its session later this month.

At present, deposits are guaranteed up to €20,000 (Sk602,520). Government, via this new proposal, is responding to the global financial crisis and to conform with the decision adopted by EU Finance Ministers Council.

"The Government considers Slovak banking sector to be secure," said Slovak Prime Minister Rober Fico, adding that the Government is taking its cue from the recommendations of Ekofin and the situation in other EU countries. Fico says that he believes this decision will contribute to the stability of the European banking sector.

Prime Minister also said that he doesn't expect the financial crisis to take a serious toll in Slovakia. "We did this only to make the situation in Europe calmer and due to Ekofin's recommendations," said Fico.

(TASR-SLOVAKIA)