Preliminary figures show the surplus of the state budget of the Slovak Republic at SKK 5.723 billion in the first four months of this year. Total revenues of the state budget reached SKK 98.132 billion over the January-April period, to make up 42.3 percent of the figure planned for the year 2004. They were SKK 30.333 billion higher than a year ago, chiefly as a result of higher tax revenues. Expenditures stood at SKK 92.409 billion, which is 29.8 percent of the annual projection, the Finance Ministry informed SITA on Monday.

Prva Stavebna Sporitelna with Q1 Profit of SKK 148.5 Mln.

Slovakia’s largest housing construction savings bank, Prva Stavebna Sporitelna (PSS), earned a profit of SKK 148.5 million over the first quarter of this year. Net interest and similar revenues amounted to SKK 434.5 billion and net revenues from fees and commissions were at SKK 76.1 million. General operating costs reached SKK 145.1 million, according to data disclosed by PSS.

Telecommunications Office Announces Tender for More FWA Operators

Entities interested in operating a fixed wireless access (FWA) network in Slovakia now have a chance to acquire a license. The Slovak Telecommunications Office (TU) announced a tender on Friday to select FWA operators in the 3,410 – 3,600 MHz band. “It is up to the operator what services it uses the network for,” spokesman for the authority Roman Vavro told SITA. The FWA network is the most frequently used in providing wireless Internet access.

Stock Slovakia s.r.o. Reports SKK 401.2 Mln. Turnover for Last Year

Stock Slovakia, s.r.o. trade company reported a turnover of SKK 401.2 million in 2003. Its gross profit was SKK 7.75 million and net profit was SKK 3.47 million. The company sold about 2 million liters of spirits last year: an increase of 10 percent from 2002. The year 2003 was the first year when product distribution for the largest Czech spirits producer Stock Plzen was secured by its 100-percent affiliation Stock Slovakia s.r.o., the company’s representatives informed SITA.

Economy Minister Suggests Scrapping Social Partnership Council

Minister of Economy Pavol Rusko told the press on Monday that he will propose that cabinet cancel the Social Partnership Council. He wants to have the respective draft ready in two weeks. What prompted his decision was last week’s statements by a Trade Union Confederation (KOZ) top official. “Mr. Saktor clearly put it that he will support [opposition party] SMER,” said the minister. According to the minister, for whom the KOZ statements were the last straw, it makes no sense to enter into negotiations with the trade unionists because they are getting involved in opposition politics. Last week, KOZ president Ivan Saktor stated that the natural ally of the KOZ is opposition party SMER.

Slovak Branch of ING Bank Reports SKK 77.37 Mln. Q1 Profit

ING Bank Slovakia reported a profit of SKK 77.37 million over the first quarter of this year, down 35 percent y/y, because for the first three months of the previous year the bank earned a profit of SKK 118.53 million. The bank’s balance-sheet total stood at SKK 48.102 billion at the end of March, thereof the biggest part were claims against other banks, reaching SKK 19.98 billion, informed the company.

Final Version IT Monitoring System for EU Funds is Now in Service

On May 1, the Slovak Construction and Regional Development Ministry launched into full service the final version of the information and monitoring system for structural funds and the Cohesion Fund, the so called ITMS Final Version. ITMS is an information system to support management, feasibility assessment, monitoring and financing for EU funds projects, stated the ministry’s spokeswoman Sylvia Varagyova.

Heineken Slovakia with Consolidated Sales of SKK 5.4 Bln. in 2003

Brewery and malt producer Heineken Slovensko, a.s. and Heineken Slovensko Sladovne, a.s. reported consolidated gross sales including excise tax on beer of over SKK 5.4 billion last year. The company exported beer and malt worth SKK 1.7 billion in 2003. “Exports increased by over 37 percent y/y and made up 30.5 percent of total sales,” said PR manager of Heineken Slovensko Peter Svec.

Slovnaft Expects Continued Rise of Crude Oil Prices this Year

Prices of crude oil and its products will continue rising this year on the world markets. “From the start of the year, the daily price quotation of Brent crude oil was higher than last year’s average price of USD 29 per barrel. During the first four months of 2004 the average price for Brent crude oil increased to USD 32 per barrel,” said Bela Kelemen, managing director of the supplier chain of Slovak crude oil refiner Slovnaft a.s. On Friday, the daily quotation for Brent crude oil exceeded USD 35 per barrel while record levels are as high as quoted petrol prices in Rotterdam.

Ministry Will Not Publish Contract with Kia, Public Costs are Known

The investment contract signed between Korean carmaker Kia and the Slovak Republic is absolutely all right Economy Minister, Pavol Rusko is convinced. “We will not publish the contract, as all the details pertaining to related public expenditures are publicly known”, the minister said at a press conference on Monday. State financial incentives to the investor will be in line with limitations imposed by the European Union so that they do not exceed 15 percent of the investment costs, Mr. Rusko said. Because of an agreement with the investor, the Economy Ministry has refused to publish the contents of the contracts between Kia and the Slovak Republic.

0.4 Million Slovaks on Holidays Abroad with Travel Agencies in 2003

Prices of holidays abroad in Slovakia have been constant for several years. In comparison with last year, they are at the same level; in some cases they are even lower. As vice-president for the Slovak Travel Agencies Association (SACKA) Pavol Komora reported at a press conference on Monday, last year 407,000 Slovaks traveled abroad with travel agencies. Sales of holidays abroad should, according to Mr. Komora, grow by 8 to 10 percent this year.

Health Insurance Companies are Beginning to Focus on the Internet

Slovak health insurance companies are beginning to focus more on the Internet. Pending legislative approval, health insurer Vzajomna zdravotna poistovna Dôvera (VZPD) plans to provide its clients with comprehensive information service concerning legal changes that stem from the health service reform, Maria Leskova, the PR manager of VZPD reported.

STOCK MARKET: Slovnaft and VUB Shares Firm SAX Index on Monday

Shares of oil refiner Slovnaft and VUB bank firmed the official share index SAX on the first trading day of May. The index grew by 1.39 percent, or 2.43 points, to 177.49 points. Turnover on the Bratislava Stock Exchange (BCPB) moderately increased from SKK 720.39 million on Friday to SKK 970.2 million on Monday with SKK 5.1 million in share trading.

MONEY MARKET: Bank Bids in T-bill Auction Exceeded SKK 14 Bln.

An auction of one-year Treasury Bills breathed fresh life into trading on the interbank market on Monday. Tatra Banka dealer Michal Stano reported that the Finance Ministry accepted only SKK 1.225 billion from aggregate bank bids of SKK 14.080 billion at a yield of 4.691 percent p.a. Commercial banks deposited SKK 20.311 billion in their reserve accounts in the central bank, meeting the minimum reserve requirement on a cumulative basis at 104.26 percent as of Monday. The dealer estimated the liquidity surplus at SKK 4.8 billion. The National Bank of Slovakia (NBS) has set the minimum reserve requirement [2 percent of primary deposits — editor’s note] for May at SKK 15.531 billion.

Unions are Shocked by Proposal to Cancel Social Partnership Council

The intention of Economy Minister Pavol Rusko, the head of the Social Partnership Council, to submit to the cabinet a proposal to cancel the tripartite law within two weeks has shocked the president of the Confederation of Trade Unions (KOZ), Ivan Saktor. “Probably, he has misunderstood some things,” said Mr. Saktor, adding that it is a mistake, three days after Slovakia’s accession to the European Union, to suggest canceling a law that serves as an example for other EU member countries. A parliamentary deputy for the opposition Communist Party (KSS), Ivan Hopta, called on the KOZ to re-evaluate its decision to support the SMER party. A new organization of employers, Club 500, which clusters owners of companies with over five hundred employees, is against dissolving the tripartite since it regards it as an appropriate forum for searching solutions for employers, employees, and the government when bills are drafted.

FOREX MARKET: The Slovak Crown is Stronger on Monday

The Slovak crown firmed to 40.310/340 SKK/EUR from 40.420/460 SKK/EUR on Monday. VUB dealer Ladislav Benedek said that the crown has strengthened when London banks did not join trading due to a bank holiday. “Thus clients’ orders were mostly behind the crown’s appreciation,” said the dealer. The US dollar stood at 1.1943 USD/EUR. The Slovak crown was thus quoted at 33.750/790 SKK/USD. The cross rate of the Slovak and Czech crowns was 1.238 SKK/CZK.

Fiscal Decentralization will Bring Changes for Towns and Villages

Fiscal decentralization will change the [financial] position of a majority of Slovak towns and villages; the position of some will improve while it would worsen for others. However, decentralization will not favor towns over villages, said Minister of Finance Ivan Miklos at a press conference after his meeting with representatives of the Association of Slovak Towns and Villages (ZMOS) in Vysoke Tatry on Monday. The new system introduces higher stability of distribution of funds, as it links financing of local and municipal governments to their performance and responsibilities, claims the minister. According to the new system, all collected personal income tax will be distributed among municipalities. Real wages are expected to rise in future, thinks Mr. Miklos, therefore income of towns and villages should also post a dynamic growth.

Postova Banka with Q1 Profit of SKK 16.48 Million

Banking house Postova Banka, a.s., closed the first quarter of this year with a profit of SKK 16.48 million, which means a significant improvement as for the same period of 2003 the bank reached a loss of SKK 21.1 million. The balance-sheet total stood at SKK 22.652 billion at the end of March. Net interest income was SKK 206 million for the first three months, while net income from fees and commissions reached SKK 21.42 million, informed the company.

Holcim to Use Last Year’s Profit to Support Shareholders’ Equity

The board of directors of the largest cement producer in Slovakia, the joint-stock company Holcim (Slovensko) proposed not to pay dividends from last year’s profit. The board of directors proposed to reinvest the profit of the company of SKK 111.12 million to support shareholders‘ equity, said communication manager of Holcim Marek Michlik. The company’s profit decreased in 2003 compared with the previous year, while acquisitions of three concrete mixing plants and a merger with Holcim Beton a.s., were the most significant factors behind this drop. Holcim’s turnover increased in Slovakia to SKK 3.4 billion last year. An investment of over SKK 2 billion into the modernization of a rotating furnace influenced the financial result as well. The company will finish the project in the middle of 2004 and its result will be a significant decrease of energy consumption and higher effectiveness of production. Total ecological investments in the plant of Rohoznik exceeded SKK 60 million last year.

Holidays in Slovakia to be 15 – 25 Percent More Expensive this Year

The price of local holidays offered by travel agencies in Slovakia is expected to rise by 15 – 25 percent this year when this estimate does not include the influence of inflation and potential investments. President for the Slovak Travel Agencies Association (SACKA) Robert Kohlmann ranked among reasons behind the higher holiday prices the duty of foreign operators to pay from their margin the value-added tax and thus the prices of holiday trips to Slovakia will increase by 4 percent.

Slovak and Czech Transport Ministers Agree with EC Directive Revision

Slovak Minister of Transportation, Posts, and Telecommunications Pavol Prokopovic agreed with the Czech Transport Minister Milan Simonovsky at a meeting on Monday in Prague with the revision of the European Commission directive that regulates introducing fees for highways and high-speed roads in Europe. Ministerial spokesman Tomas Sarluska informed SITA news agency.