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Slovenia to take loan to help Greece

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(LJUBLJANA) - Eurozone member Slovenia will have to take a loan and revise its budget to participate in the 110-billion-euro (145-billion-dollar) rescue package for Greece, the country's finance minister said Tuesday.

"Slovenia will gather the resources needed (for the rescue package for Greece) through a bond issue or a loan on the international market and lend it to Greece at a one-percent-higher interest rate," Finance Minister Franc Krizanic told Slovenian state television.

He added Slovenia's government will also have to revise its budget and send to parliament a special bill that will enable it to take part in the rescue package for Greece being put together by the EU and the International Monetary Fund.

Slovenia, an Alpine state of two million people that joined the euro area in 2007, will have to contribute 384 million euros to the international bailout package starting with 144 million euros this year.

"None of the countries taking part in the rescue package to Greece should emerge from it with losses," Krizanic said, adding action by the EU and the IMF was needed to avoid a domino effect that could produce a wider crisis.

Last weekend, Greece's 15 eurozone partners agreed to put up 80 billion euros of an unprecedented 110-billion-euro bailout package with the IMF over three years.

But the rescue package comes with strings attached and EU countries insist Greece must adhere rigidly to its austerity plan or the loans will be halted, potentially pushing the debt-laden country towards insolvency.


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