The National Bank of Slovakia (NBS) ended the first four months of this year with a cumulative loss of SKK 1.7 billion, down from SKK 5.5 billion it showed in late March. The last month’s profit of SKK 3.8 billion, chiefly resulting from weakening of the Slovak crown against the US dollar by 3.5 percent in April, was behind the reduction of the central bank’s loss. Since the beginning of this year the Slovak crown weakened by 3.7 percent against the US dollar, while against the euro it firmed almost 2 percent, the NBS informed SITA.

Pavol Rusko Would Welcome EXIM Bank’s Shift under Economy Ministry

Economy Minister Pavol Rusko believes it would be possible to improve export support by shifting the EXIM Bank under the Economy Ministry. ”The EXIM Bank should not act as a bank, since that is not its role,” Mr. Rusko told the Burza (Stock Exchange) Club at a discussion forum on Tuesday. He stressed that there was space for discussion with the Finance Ministry regarding the EXIM bank, which would significantly help support export.

NKU Finds Flaws in Government Support of Industrial Parks

When controlling the process of distributing funds to establish an industrial park in Devinska Nova Ves, the Supreme Audit Office (NKU) came across two differing expert opinions elaborated by the Slovak Investment and Trade Development Agency (SARIO) in 2002. Based on one of them that recommended that the project be approved in full, the cabinet had decided to provide a state subsidy to establish technical infrastructure worth SKK 83.6 million for the industrial park. However, this expert opinion was not registered at the Economy Ministry and lacked a cover letter, NKU Vice-President Igor Maly told a news conference on Wednesday.

Chemko Group Posts Consolidated Sales of SKK 2.471 Bln. in 2003

Consolidated financial statement show that the chemical group Chemko, a.s., Strazske reported sales of SKK 2.471 billion in 2003. Added value amounted to SKK 482.1 million. However, the group reported just a symbolic profit of SKK 0.1 million last year, according to data disclosed by Chemko.

World Bank Appreciates Reforming Progress of Slovakia

In its quarterly report, the World Bank ranked the Slovak Republic among the leading reformers in its region. “The fiscal deficit in 2003 came in at only 3.6 percent of GDP (according to ESA 95 methodology), well below plans and expectations,” stated the World Bank. Major tax reforms aimed at lowering the tax burden as well as expenditure reforms, focused on rationalizing the social security system, were introduced in the context of the 2004 budget. In addition to major reforms of the health care system, a pension reform with the introduction of a second, fully funded pillar is being implemented.

Telecom Office Starts Proceedings to Set Interconnection Conditions

The Slovak Telecommunications Office (TU), as a regulatory body on the telecommunications market, has started administrative proceedings to set conditions for interconnecting networks of the dominant Slovak fixed-line service provider, Slovak Telecom, and alternative operators. According to TU spokesman Roman Vavro, the office must set the conditions because the alternative operators and Slovak Telecom (ST) have not reached any agreement on network interconnection. The proceedings relate to Slovak Telecom and alternative operators eTel Slovensko, s.r.o.; GlobalTel Slovensko, s.r.o.; and GTS Slovakia s.r.o.

Competitiveness of Slovakia Improved from Last Year

Slovakia has improved its position in countries ranked according to competitiveness for the year 2004. The quality of its business environment has placed it in 40th position in an analysis of sixty countries of the world. With this ranking it has placed ahead of Slovenia, Czech Republic and Hungary. Simultaneously, Slovakia ranks among countries with the biggest improvement in its position when it jumped forward six places.

Cabinet Passes State Budget Outlines for 2005-2007

At its regular session on Wednesday, the Slovak cabinet approved the outlines for the state budget for 2005-2007. The public finance deficit, calculated using ESA 95 methodology, should reach 3.4 percent of the projected gross domestic product (GDP) next year. The figure does not include the cost of the pension reform. The Finance Ministry expects this cost to raise the public finance deficit by an additional 0.7 percent of GDP in 2005. The cabinet also passed the Convergence Program of the Slovak Republic for 2004-2010.

Chempro Construction Firm to Lower its Share Capital to SKK 6 Mln.

Shareholders of construction firm Chempro, a.s. Bratislava will decide on a decrease of the company’s share capital from SKK 21.829 million to SKK 6 million at their annual general meeting due to be held on June 10. Capital should be decreased by the withdrawal of shares from circulation. The company wants to decrease the capital partly to settle losses from previous years and partly to pay dividends to shareholders, according to data published by the company.

Cabinet Rejects Reintroduction of Pension Insurance for Students

At its session on Wednesday, the cabinet turned down the deputy draft revision to the social insurance law elaborated by Robert Fico and Robert Madej from the opposition party SMER. The revision should have reintroduced compulsory pension insurance for students of secondary schools and universities from 16 years of age to be paid from the state budget. If the revision was approved, the state would, according to Mr. Fico’s calculations, spend over SKK 4 billion on pension insurance for students in 2005.

Social Dialogue will Go On, says Cabinet, but with Different Rules

Cabinet ministers agreed that the economy and labor ministries will draw up an amendment to the social partnership law that will scrap the current form of functioning of social partnership. However, the new law should create conditions for continued social dialogue, but in a different form.

Sony Slovakia Reports 2003 Sales of SKK 6.893 Bln.

Sony Slovakia reported sales of SKK 6.893 billion for the business year from April 1, 2002 to March 31, 2003. Compared with the previous business year this means a moderate drop even though output increased. Customer service division general manager Lubomir Kollar announced at a press conference on Wednesday that the company increased its production of TV sets by 680,000 units to 7.98 million over the year. Mr. Kollar ascribed the decrease in sales to a decline in transaction prices for components and TV sets.

If CEZ Acquires SE Stake, it will Try to Halt a Shutdown of V1 EBO

If the Czech energy company CEZ wins the tender to acquire a majority stake in Slovak dominant power producer Slovenske Elektrarne (SE), it would endeavor to halt the early decommissioning of SE’s nuclear power station V1 in Jaslovske Bohunice (EBO). Chairman of the CEZ board of directors and CEZ director general Martin Roman said that this is a very strong card in CEZ’s hands in the fight for SE. “I think that we have really excellent relations with the International Atomic Energy Agency (IAEA).

Antitrust Office Issued SKK 500,000 Fine to Slovenske Aerolinie

The Antitrust Office (PMU) board decided to issue a fine of SKK 500,000 to Slovak airline Slovenske Aerolinie (SA). The Antitrust Office ruled that the contract on charter flights between Slovenske Aerolinie and Hydrotour travel agency from November 5, 2002, restricted free competition on the relevant market. Spokesman for the airline Marek Revilak told SITA that the company is thinking about the possibility of appealing against the Antitrust Office verdict.

FOREX MARKET: SKK/EUR Exchange Rate Remains Flat on Wednesday

Trading on the Slovak foreign exchange market was quiet on Wednesday. CSOB dealer Andrej Zeman said that the Slovak crown was virtually flat at the level of 40.105/135 SKK/EUR throughout the day. „After the central bank said that if the SKK continues strengthening, it is willing to further cut key interest rates, trading became a little nervous,“ said the dealer. In his opinion foreign investors are trying to push rates even lower.

MONEY MARKET Remains in Liquidity Surplus after Wednesday

The money market on Wednesday saw the settlement of the central bank’s sterilization repo contracts and the Monday T-bill auction. SKK 75.844 billion from the Tuesday repo tender left the interbank market on the influx of SKK 77.235 billion from the maturing repo deals of the central bank. Also an additional SKK 1.225 billion left the market from Monday’s T-bill auction while SKK 1.956 billion from maturing bills entered the market.

Ministers Approved State Budget Outlook for 2005

At its regular session on Wednesday, the cabinet approved the outlook for the state budget for 2005-2007. The public finance deficit, calculated using ESA 95 methodology, should reach 3.4 percent of the projected gross domestic product (GDP) next year. The figure does not include the cost of the pension reform. The Finance Ministry expects this cost to raise the public finance deficit by additional 0.7 percent of GDP in 2005.

Tondach Roofing Tiles Producer Will Expand in Slovakia

Austrian construction materials producer Tondach definitely decided at the end of April to reconstruct its plant in Nitrianske Pravno and thus enlarge the production capacity within the concern. Last year clearly showed that there is growing demand for roofing tiles on the market, assistant of the board of directors of Austrian company Tondach Gleinstatten AG Martin Olbrich said.

Cabinet Okays Draft Revision to Large-Scale Privatization Law

At its regular session on Wednesday the Slovak cabinet green lighted a draft revision to the large-scale privatization law proposed by deputies Branislav Opaterny and Jozef Hurban from the Free Forum. The draft revision proposes incorporating into the law a provision stipulating that privatization proceeds can be used exclusively to reduce public debt or finance reforms of the pension system and education. Last year, deputies managed to add to this law the text that privatization proceeds may also be used to finance significant investments.

SAX Index Moderately Weakens Midweek

The official SAX share index fell to 184.07 points under the influence of VUB bank shares on Wednesday. Conversely, this issue considerably supported the index on Tuesday. Midweek, the index declined 0.35 percent or 0.65 points. Turnover on the Bratislava Stock Exchange (BCPB) surged from SKK 1.9272 billion on Tuesday to SKK 2.738 billion on Wednesday with SKK 3.865 million in share trading.