Pension Insurance Capitalization Pillar to be Introduced in 2005

In the period between January 2005 and June 2006 the current contributors to the pay-as-you-go pension insurance system of social security provider Socialna Poistovna will be able to register to additional saving for their pensions on a personal account in a private pension insurance company. The minimum period of saving in these private pension insurers, however, will be ten years, otherwise their savings will be returned to the pay-as-you-go system, said Labor Minister Ludovit Kanik at a press conference on Tuesday on the occasion that the draft bill on pension insurance saving, disability insurance and survivor’s insurance has been submitted to an interdepartmental discussion.

Slovnaft Raises Fuel Prices on Tuesday

Slovakia’s largest crude oil refinery Slovnaft a.s. Bratislava increased petrol prices by SKK 1 per liter in its petrol station network from Tuesday, July 15. The price of diesel was increased by SKK 0.50 per liter. Slovnaft last changed its fuel prices on July 10, when the petrol prices went up by SKK 0.5 per liter. The price of diesel remained unchanged.

H1 Profit of Construction Firm Banske Stavby at SKK 21.2 Mln.

Construction firm Banske Stavby, a.s., Prievidza closed the first half of this year with a gross profit of SKK 21.2 million. Output of the company in the monitored period reached SKK 459 million, what translates into a year-on-year increase by SKK 189 million. “Construction works represented a decisive portion of output, amounting to SKK 364.3 million in the first half of this year,” economic director Vladimira Herchelova told SITA.

Labor Minister Introduces Government’s Pension Reform Project

Pension fund management companies that want to apply next year for a license to provide old-age pension insurance will have to possess share capital of at least SKK 300 million payable in cash. A majority share of at least 51 percent will have to be controlled by local or foreign institutions operating on the financial market, said Labor Minister Ludovit Kanik at a press conference on Tuesday about the government’s pension reform project.

Slovak Dairies Purchased 88.5 Mln. Liters of Raw Milk in May

In May 2003, Slovak dairies purchased 88.5 million liters of raw milk, what is a 5- percent decrease compared with the same period of last year. Of this volume, milk in quality classes Q and I. amounted to 83.8 million, what is 94.65 percent of the total purchased volume. This is 8.1 percent less than in 2002. The volume of milk not meeting the requirement was 4,700 liters and this portion increased nearly 2.5 times from May 2002, the Association of Slovak Dairy Companies informed SITA.

Cabinet to Deal with the National Strategy to Introduce the Euro

Slovak government together with the Slovak central bank want to introduce the single European currency in Slovakia in 2008 to 2009. Euro-zone accession could be, by good timing, a significant impulse for healthy growth of the Slovak economy, while advantages of EU membership are expected to outweigh disadvantages. That is why Slovakia should introduce the euro as soon as it safely fulfills Maastricht criteria. These are conclusions of the Strategy of adoption of euro in Slovakia, elaborated by the Finance Ministry and the National Bank of Slovakia ( NBS ) and which will be discussed by the cabinet on Wednesday.

Output Aluminum Smelter Slovalco Up, Revenues Down in H1 2003

Aluminum smelter Slovalco a.s. Ziar nad Hronom reports an almost 18-percent decrease in revenues to SKK 4.77 billion during the first half of 2003, despite higher sale volumes. Gross profit slid by SKK 80 million to SKK 471.5 million. When calculated in US dollars, gross profit was USD 6.3 million compared with USD 14.7 million reached in H1 2002. Slovalco director general Milan Vesely informed SITA about the company’s midyear results.

E.ON to Sell to EBRD 9 Percent in Power Distributor ZSE

Representatives of German energy company E.ON Energie have reached a definitive agreement with the European Bank for Reconstruction and Development (EBRD) to sell it 9 percent of shares in Slovak regional power distributor Zapadoslovenska Energetika (ZSE). ZSE spokesman Jan Orlovsky confirmed this information to SITA. The bank should buy the 9-percent stake under the same conditions as E. ON in the acquisition of its 49-percent in ZSE.

Slovakia’s Tourism FOREX Revenues up 21 Percent y/y in May

According to preliminary data from the National Bank of Slovakia, Slovakia’s foreign exchange revenues from tourism were SKK 12.188 billion in May, up 21.4 percent y/y. Foreign exchange expenses of Slovak citizens traveling abroad increased by 3.8 percent y/y to SKK 8.793 billion. The balance shows an SKK 3.395 billion surplus, up 116.4 percent y/y, according to data released by the Economy Ministry.

Slovak Breweries Complain Higher Excise Taxes will Make Life Hard

The adopted excise tax rise on beer will make the life of Slovak breweries complicated. Topvar brewery marketing chief Jozef Nemec said that cabinet changed the rules during a game in which breweries already had their plans. “Such unexpected interventions into the development of businesses‘ economics have no place in developed countries of the world,“ Mr. Nemec said. He expressed an opinion that the Finance Ministry cannot correct a mistake in state budget calculations using motor fuel and beer price rises, which will affect broad groups of the population with the lowest income. The excise tax rise may also cause so-called purchasing tourism at border areas.

Restructuring in Gas Utility SPP Will Some Job Cuts

Restructuring in gas utility SPP will reduce the number of its employees by about 10 percent. The new company divisional structure, SPP spokeswoman Dana Krsakova announced, will make processes and relations inside the company more effective and transparent. SPP currently has about 6,200 people on its payroll.

Chemosvit Packaging Producer Reports H1 Sales of SKK 1.82 Bln.

Packaging producer Chemosvit, a.s., Svit reported sales of SKK 1.82 billion in the first six months of 2003, which is approximately the same level as in same period of last year. Expressed in volume, this is 13.182 million tons. Total revenues until the end of June were nearly SKK 1.739 million. “Despite a 6.7 percent higher production and unit sales, revenues are approximately SKK 50 million lower,“ said Chemosvit finance director Vladimir Balog. Chemosvit exports more than 70 percent of its products and the sales growth was predominantly caused by the stronger Slovak crown compared to last year.

MONEY MARKET: FinMin Accepted SKK 2.2 Billion in T-Bill Auction

The Finance Ministry accepted SKK 2.2 billion in an auction of T-bills on Tuesday. The average, maximum and minimum yield was 5.19 percent p.a. Tatra Banka dealer Jozef Bozek said that bank bids soared to SKK 11.928 billion. On the other hand, the National Bank of Slovakia accepted the full bids by commercial banks of SKK 50.284 billion within its regular two-week sterilization repo tender.

FOREX MARKET: Slovak Crown Firmed Moderately on Tuesday

The Slovak crown slightly strengthened on the local foreign currency market on Tuesday. At the beginning of the trading session the exchange rate of the crown and its referential currency the euro increased from the initial 41.700/730 SKK/EUR to 41.730/750 SKK/EUR. „But later the crown firmed to 41.670/690 SKK/EUR,“ said CSOB dealer Richard Brza.

Trade Unions in PSLM and Polnotech Win a 6 Percent Wage Rise

A strike by employees in engineering companies Povazske Strojarne Letecke Motory (PSLM), a.s, and Polnotech, a.s., in Povazska Bystrica has ended successfully with a 6-percent wage rise. On Tuesday afternoon, representatives of the two engineering companies and trade unions signed an appendix to the collective agreement increasing the average as well as tariff wages in the companies by 6 percent from July 1. Extra payments and employers’ contributions into the social fund should be elevated as well. Head of the trade unions in Povazske Strojarne Pavol Sulaj informed SITA of this development on Tuesday.

STOCK MARKET: SAX Share Index Up to 160.76 Points

Higher share prices of gas storage facility Nafta Gbely and former steel maker VSZ have moved up the official SAX share index to 160.76 points on Tuesday. The index gained 1.55 percent or 2.45 points. The volume of transactions on the Bratislava Stock Exchange (BCPB) rose from SKK 542.3 million on Monday to SKK 5.034 billion on Tuesday, with just SKK 14.5 million in share trading.