Other services - Slovak Republic

06.05.2021

Securities lending and borrowing

All foreign debt securities included in this link and eligible in CBL qualify for CBL’s securities lending and borrowing programme.

Disclosure requirements

Please refer to the Disclosure Requirements - Slovak Republic.

Holding restrictions

ThresholdRestriction/requirement
Banks

Acquisition equal to or crossing 5%, 10%, 20%, 33% or 50% threshold of registered capital and voting rights

Approval from the NBS for the purchase.

Publicly traded companies

Acquisition crossing 33% threshold

Legal requirement to tender an offer to buy all remaining shares of the issue.

There are no general ownership restrictions imposed by the Slovak securities market with regard to corporate bonds.

However, for tax reasons, customers must refrain from holding, on their Clearstream Banking account, Slovak bank and corporate bonds on behalf of beneficial owners (including themselves, if applicable) who are resident for tax purposes in Slovakia as defined by the relevant Slovak laws.

The customer shall indemnify and hold harmless Clearstream Banking, its directors, officers, agents, employees of affiliates (“the indemnified persons”) for any loss, expense, liability, damage or claims incurred by any of the indemnified persons as a result of non-compliance with this holding restriction.

Customers should note that issuers on the Slovak market hold the right to request a beneficial owner’s breakdown before paying Clearstream Banking gross income proceeds. Upon receipt of such requests from an issuer, in order to ensure the payment of related income, Clearstream Banking will request the beneficial owner’s holder breakdown to be provided by its customers within a specific timeframe. If the customer does not provide such details by the prescribed deadline, Clearstream Banking reserves the right to apply full taxation on the income proceeds.

Furthermore, upon request from the withholding agent, issuers or local tax authorities, Clearstream Banking may be requested to provide disclosure and supporting documentation of the positions of the ultimate beneficial owners for a past payment in a given security.

Customers are therefore only able to participate in the tax services offered by Clearstream Banking for Slovakian corporate bonds if they deliver full beneficial owner information and supporting documentation upon request by Clearstream Banking. If a customer does not provide such details for a past payment when requested, Clearstream Banking reserves the right to reverse the original gross payment and apply full taxation on their payment that the customers failed to provide with the required disclosure and supporting documentation.

In any event, Clearstream Banking cannot be held liable towards the customer for any suffered loss, claim, expense, cost, fine, penalties or whatsoever due to the customer having failed to timely provide the requested documentation and/or due to any wrong, inaccurate or incomplete documentation provided. The customer undertakes to fully indemnify Clearstream Banking in the event that such loss, claim, expense, cost, fine, penalties or whatsoever would be suffered by it due to the failure of the customer to comply with the above requirements.

Tax services

Customers and/or beneficial owners of Slovak securities deposited with CBL are responsible for any possible taxation of capital gains on such securities.