PSA Citroen Counts with Slovak Subcontractors in Trnava Plant

PSA Peugeot Citroen (PSA), which will lay a founding stone of its new plant in Trnava on Tuesday, counts with local subcontractors in car production in Slovakia. The Slovak industry should supply PSA chiefly with components and car equipment. „Within PSA concern, Slovak companies can export their products to PSA plants in Spain, France and Great Britain,“ said PSA President Jean-Martin Folz following his talks with Slovak President Rudolf Schuster on Tuesday.

NCHZ Shareholders Decide on Distribution of Last Year’s Profit

At their annual general meeting on Monday, shareholders of chemical producer Novacke Chemicke Zavody (NCHZ), a.s., Novaky decided on distribution of the last year’s profit of SKK 11.08 million. The company will transfer 10 percent of the profit to the compulsory reserve fund and keep the remaining portion within retained earnings. Shareholders also approved two changes in statutory bodies of the company, related to the post of a member of the board of directors and a supervisory board member. Finally, shareholders okayed the annual report of the company for 2002, NCHZ economic director Stefan Benzir informed SITA.

OTP Insurance Affiliations Want a 4-Percent Share of Slovak Market

Newly established insurance companies OTP Garancia and life insurer OTP Garancia Zivotna Poistovna plan to gain control over 2 to 4 percent of the Slovak insurance market until 2005. The insurance companies, founded by OTP Banka Slovensko, are launching operations on the local market days, director general and chairman of the board of directors in the new insurance companies, Tomas Durik informed SITA. License proceedings have been concluded last week.

Seventeenth Operator Gets a Fixed Line Voice Service License

The Slovak Telecommunication Office (TU) has already granted the seventeenth license to provide fixed line voice telephony services. The new regional license holder is USWARE s.r.o., which wants provide this service in Bratislava, TU spokesman Roman Vavro informed SITA. According to an extract from the corporate register, US WARE, INC., resident in Delaware, United States is the sole owner of Bratislava-based USWARE. The firm is involved in consulting in software, information technologies and data transmission and processing, and services in registration and administration of Internet domains.

Analyst Pavol Karasz Criticizes Planned Excise Tax Reform

The increase of some excise taxes planned from July of this year will decreased domestic demand and halt development of the some branches, increase the illegal economy and decrease the living standard of the population with earnings at the level of average monthly wages and the those with the lowest income. „The changes of indirect taxes will increase consumer prices and preserve the low living standard of the majority of the population, said Pavol Karasz, a prognosticist and analyst of the Institute for Slovak and World Economy at the Slovak Academy of Sciences. According to his projection, the growth of prices of goods will be most influenced by higher motor fuel prices. Households, mainly of pensioners, will try to save the most on services, education and goods for long-term use, since their expenditures on the goods of daily consumption will increase.

Central Depository Should Launch Operations from Q4 of this Year

The central depository, which will be formed by the transformation of the Central Securities Register (SCP) could launch operations from the fourth quarter of 2003. SCP director general Emilia Palkova told SITA that the central depository could admit its first members in September or October at the latest, depending on when it will obtain respective permission and complete a trial run. Launching the operation of the central depository is conditional on receiving the Financial Market Office’s (UFT) permission and admission of the first member.

Slovak and Czech Transport Ministers Discuss Railway Deregulation

From next year the Slovak Transport Ministry plans to deregulate passenger transport fares on regional railway tracks. There are plans for gradual deregulation of fares on main routes and gradual introduction of deregulated payments for railway track usage, said Transport Minister Pavol Prokopovic at Tuesday’s meeting of the parliamentary committee for economy, privatization and enterprise with the Czech parliament’s counter-committee. He said that fare deregulation would gradually reduce the government contribution to financing passenger transport on railways.

PSA Peugeot Citroen Plans to Open its Plant in Trnava in 2005

On the occasion of laying the foundation stone of new car maker plant PSA Peugeot Citroen (PSA) in Trnava on Tuesday, PSA president Jean-Martin Folz said that after the production launch, in 2006 the plant is expected to manufacture 55 cars per hour in a three-shift operation regime. Recruitment of 3,500 future employees will start at the end of this year. The plant premises will take up 190 hectares and in order to facilitate supply the company will build an industrial park for subcontractors on an area of 55 hectares. Mr. Folz said that since the success of PSA production is based on a highly skilled labor force, the company in cooperation with the French education ministry, has begun negotiations with the Slovak state administration on an education partnership.

Unions and Railway Company Wage Talks Suspended, Strike Not Likely

At their meeting with employers in the presence of a negotiator on Tuesday, railway trade unions agreed to postpone negotiations on this year’s wage growth and to meet again next Wednesday. „Both parties declared interest in finding a compromise to maintain social peace,“ human resources director of national railway company ZSSK Anton Jaborek, in charge of collective bargaining on behalf of ZSSK told SITA following four hours of talks. „Our stances came a little closer after these negotiations,“ added vice-chairman of the Railway Trade Union (OZZ), Peter Rozloznik.

National Labor Agency Spent 3.48 Bln. on Active Labor Policy in 2002

Head of the National Labor Office (NUP) Jaroslav Sumny told a news conference on Tuesday that NUP spent SKK 3.483 billion on the active labor policy, i.e., support for the creation of new jobs, up SKK 1.248 billion from a year ago. This is the biggest increase since 1997. NUP created 72,280 jobs last year.

Slovakia’s Trade Deficit Should Drop Below SKK 80 Bln. this Year

Government’s measures and anticipated growth in demand on the leading export markets should help reduce Slovakia’s trade deficit at least below SKK 80 billion in 2003. The measures should most of all reduce consumer imports, according to a document evaluating the foreign trade results for 2002 to be discussed soon by cabinet. Further foreign trade development will also be significantly influenced by the development of global prices of primary raw materials.

MONEY MARKET: Bids in Central Bank’s Repo Tender just SKK 40 Bln.

After the sterilization repo tender of the central bank on Tuesday, prices of tom/nexts and spot/nexts fell to 5.1/5.3 percent p.a. UniBanka dealer Jozef Hempfinger informed that bank bids in the regular repo tender of the National Bank of Slovakia (NBS) reached just SKK 40 billion. The average interest rate was 6.49 percent. The central bank accepted the bids in full.

Slovak Crown Weakens to 41.450/480 SKK/EUR on Tuesday

On Tuesday the Slovak crown weakened from 41.380/41.400 SKK/EUR to 41.450/41.480 SKK/EUR. According to Juraj Zabadal, Slovenska Sporitelna dealer, the Slovak currency weakened at the beginning of the trading day to 41.620 SKK /EUR under pressure from a massive foreign exchange purchase by a local bank. Later, London-based banks contributed to the firming of the Slovak crown to 41.510/41.600 SKK. At this level Marian Jusko, governor of the National Bank of Slovakia (NBS) said that the central bank is ready to intervene against depreciation of the Slovak currency, if it is not justified by economic factors.

SPP Group Ended 2002 with Consolidated Net Profit at SKK 9.2 Bln.

According to the annual financial statements drawn up in line with international financial reporting standards (IFRS), the group of gas utility Slovensky Plynarensky Priemysel a.s. (SPP) reported a consolidated after-tax profit of SKK 9.193 billion. In year 2001 its profit was SKK 5.898 billion. The gross profit of the company last year amounted to SKK 13.535 billion, up SKK 5.825 billion from 2001. The operating profit of SPP rose from SKK 5.453 billion to SKK 12.154 billion.

SAX Share Index Firms to 148.94 Points on Tuesday

On Tuesday the Slovak official SAX share index increased 0.89 percent or 1.32 points to 148.94 points. Turnover of transactions on the Bratislava Stock Exchange (BCPB) increased from SKK 91.4 million on Monday to SKK 4.76 billion on Tuesday with SKK 13.27 in share trading.

Parliament Overturns President’s Veto on Pensions Rise

Parliament decided on Tuesday that pensions in Slovakia will increase by 6 percent from July. Lawmakers thus overturned President Rudolf Schuster’s veto, who requested an increase in pensions by at least 8 percent. Seventy-six ruling coalition deputies in the 150-member parliament voted in favor of the 6-percent rise. The maximum pension should thus rise from the current SKK 8,697 to SKK 9,219. Valorization from July will apply to retirement pensions, pensions for disabled persons, widower/widow and orphan pensions. Pension expenses of social security provider Socialna Poistovna will increase by SKK 2.52 billion in the second half of this year.