The National Union of Employers (RUZ) does not support the creation of a joint body with the Slovak Association of Employers’ Federations (AZZZ). This stems from its Wednesday meeting with AZZZ representatives. But the RUZ is ready to negotiate over concrete proposals related to employers’ questions. The RUZ supports a fundamental reconstruction of tripartite bargaining and regards voluntary membership in individual organizations as something that goes without saying.

Construction Ministry Asset Applications at SKK 801 Mln. in Subsidies

The Ministry of Construction and Regional Development is evaluating 384 subsidy applications for housing construction, removal of systemic defects in concrete rental apartments and the construction of technical equipment. The required subsidies amount to over SKK 800.7 million. “Up to May 5 the ministry processed 84 draft contracts for subsidies exceeding SKK 101 million,” ministry spokeswoman Silvia Varagyova informed on Thursday. Most of the subsidy contracts account for the removal of systemic defects: SKK 59.92 million, while contracts for subsidies to construct technical assistance make up SKK 10.86 million. Draft contracts for housing construction subsidies equal SKK 30.3 million.

Osram Slovakia to Invest EUR 9.5 Million to Expand Production

Lighting equipment producer Osram Slovakia, a.s., Nove Zamky, plans to invest EUR 9.5 million into production expansion over the next two to three years. The company plans to enlarge its production plant and to buy new machinery to manufacture light bulbs for the automotive industry, informed Economy Minister Pavol Rusko at a press conference on Thursday. The government will provide investment stimuli to Osram, SKK 60 million as a tax credit and SKK 60 million to cover the costs of creating new jobs and training.

Konstrukta-Industry Supplies SKK 100 Mln. Production Line to Matador

Konstrukta-Industry, a.s., Trencin, producer of devices for the rubber industry, signed a contract with tire-producer Matador, a.s. earlier this month to supply a Triplex extrusion plant worth almost SKK 100 million, Konstrukta-Industry director general Lubomir Plsko informed SITA on Thursday. During the history of Konstrukta-Industry, this will be the second such line manufactured for Matador. The first has been working in Matador for almost ten years.

Svik Clothing Company Reports Q1 Sales of SKK 80.6 Million

Clothing factory Svik, s.r.o., Svidnik reported a first quarter gross profit of SKK 4.6 million. The company’s sales for the first three months of this year amounted to SKK 80.6 million; production stood at SKK 78 million. “On the basis of the Q1 results the company expects a pre-tax profit of SKK 10 million this year,” said Svik’s financial director Luba Stecova.

SZRB Provided SKK 312 Mln. this Year in Soft Loans to Farmers

In order to help farmers to bridge the period between Slovakia’s integration into the European Union (EU) and the first direct payments from European Union funds at the end of this year, Slovenska Zarucna a Rozvojova Banka (SZRB) provided bridging loans of SKK 312 million to 117 applicants from the beginning of the year up to May 6. The bank currently registers 141 applications for bridging loans totaling SKK 471 million, SZRB marketing director Tatiana Paulickova informed SITA.

Sempol Holding Earned SKK 31.4 Mln. Profit Last Year

Sempol Holding, a.s., Trnava, engaged in seed production and retail of agricultural chemicals and food, improved its economic performance last year when it boosted its profit by over 77 percent y/y to SKK 31.4 million. The operating profit, rising by almost 77 percent to SKK 44.4 million, was mostly behind this improvement. Sales of goods rose by nearly SKK 36 million to SKK 344.9 million. Output more than doubled from SKK 26.3 million in 2002 to SKK 57.2 million in 2003, the company disclosed on Thursday.

High Interest Recorded in EU Funds for Civic Infrastructure

A high level of interest was recorded in financial assistance from EU structural funds within the Operating Program Basic Infrastructure with projects aimed at establishing and developing civic infrastructure in regions of Slovakia. This is also confirmed by a Ministry of Construction and Regional Development decision, in response to the high amount and quality of applications received within the first and second round, to postpone not only the third round for receiving applications from August to December, but also their evaluation and drawing to 2005. Despite the fact that the ministry is only evaluating the projects at present, it is assumed that the required funds will exceed the available financial means for the mentioned projects for the year 2004, as ministry spokeswoman Silvia Varagyova informed on Thursday.

MONEY MARKET: Banks Focus on Trading in Shortest Deposits on Thursday

Trading on the Slovak money market on Thursday was marked by a moderate liquidity surplus, which persisted in the sector even after the settlement of cash flows from the central bank’s sterilization repo tender on Wednesday. Tatra Banka dealer Michal Stano estimates the liquidity surplus in the sector at about SKK 2-3 billion. However, commercial banks did not make use of the possibility to sterilize excess liquidity through overnight transactions in the central bank, he said. They deposited SKK 15.707 billion in their reserve accounts in the central bank, meeting the minimum reserve requirement on a cumulative basis at 108.64 percent as of Thursday.

Health Insurer SZP Shows SKK 389 Mln. Budgetary Surplus in 2003

Health insurance company Spolocna Zdravotna Poistovna (SZP) reported current year income of SKK 7.272 billion for last year, which is SKK 255 million less than in 2002. Its funds, including a carryover from the previous year, reached SKK 7.661 billion, SZP informed on Thursday. The health insurer spent almost SKK 7.537 billion from its funds in 2003, thus closing last year with a budgetary surplus of SKK 125 million. In 2005 SZP showed a surplus of over SKK 389 million.

Bill on European Corporation under Interdepartmental Review

In the second half of the year Slovak legislation should embrace the law on a European corporation. A European corporation should enjoy a similar position on the territory of Slovakia as Slovak companies. The new legal form for a business entity of supranational character will comply most with the classical joint-stock company established in accordance with Slovak law from the point of view of its typical features. Any business entity of supranational character can transfer its headquarters from one member state to another without being legally canceled and liquidated. The protection of rights of minority shareholders, employees and creditors, who disagree with transferring the headquarters, should be adequately secured.

UPC Cable TV Network Must Pay SKK 15 Million Fine

The Slovak arm of cable TV network operator UPC, UPC Slovensko, will have to pay a fine of SKK 15 million issued by the Antitrust Office (PMU) for the abuse of its dominant market position. General director of UPC Slovensko Martin Mataseje said that the company has been informed about the decision and it will proceed in accordance with the law. He added that the company considers this issue as a closed chapter.

Crown’s Exchange Rate Against Euro almost Unchanged on Thursday

The Slovak crown neither improved, nor worsened its position against the reference currency the euro on Thursday. Although the exchange rate moderately strengthened from the opening 40.11/40.13 SKK/EUR to 40.08 SKK/EUR, the local currency subsequently returned to the initial level. Local, as well as foreign banks joined trading on Thursday, said VUB dealer Ladislav Benedek. He expects the exchange rate to slowly move to 40.00 SKK/EUR with behavior of foreign player having the biggest influence on the crown’s development. “The Slovak crown could move within the range from 40.05 SKK/EUR to 40.20 SKK/EUR in the next few days,” stated Mr. Benedek.

SEZ Dolny Kubin will Float an SKK 200 Million Bond Issue

Electrical installation materials producer SEZ Dolny Kubin, a.s., will float an issue 20,000 bonds with nominal value of SKK 10,000 in mid May. The floatation starts on May 17 and the company plans to invest the SKK 200 million acquired from the issue into technological equipment and into increasing its competitiveness. The fixed yield in the issue is 6.50 percent p.a. and it will be paid annually on May 17. However, the company failed to announce maturity of the issue in its announcement.

STOCK MARKET: VUB Shares Slightly Firm SAX Index to 184.18 Points

The official SAX share index moderately firmed under the influence of growing price of VUB bank shares on Thursday. It went up 0.06 percent or 0.11 points to 184.18 points. Turnover on the Bratislava Stock Exchange (BCPB) steeply decreased from SKK 2.738 billion on Wednesday to SKK 484.3 million on Thursday with just SKK 1.18 million in share trading.

Experts Support Completion of Mochovce Nuclear Power Plant

Nuclear energy sector experts who gathered at an international conference „Go Nuke Slovakia!“ in Bratislava on Wednesday and Thursday support the completion of the third and fourth blocks of Mochovce nuclear power plant (EMO). The experts are appealing to politicians from Slovakia and the European Union to treat nuclear energy fairly and without prejudice. According to chairman of the Slovak Nuclear Fund (SJF) Tibor Mikus, the experts have also agreed that electricity generation should be preserved in another Slovak nuclear power station, V1 in Jaslovske Bohunice.

Ludova Banka Gets EUR 10 Mln. Credit Line from EBRD

Ludova Banka received an EUR 10 million credit line from the European Bank for Reconstruction and Development (EBRD). Thanks to this Ludova Banka can provide the so-called E-loans in cooperation with the European Union and the EBRD within the project of support to tradesmen and small and medium-sized businesses, head of Ludova Banka’s Kosice regional branch Ludovit Korotnoky told SITA.

Experts should Set Land Plot Prices for Kia Motors Plant

Economy Minister Pavol Rusko announced that the price of land plots for the premises of South Korean carmaker Kia Motor near the town of Zilina will be set at an average of expert estimates. He thus replied to a letter from petition committees for land owners from the villages of Teplicka Nad Vahom, Nedzedza, Gbelany and Mojs, demanding that the price should be SKK 350 per square meter in Teplicka Nad Vahom and SKK 302 in other villages. The petition committees have appealed to landowners not to sell their plots until the whole dispute is resolved. According to Dusan Mikulik from the petition committee, they have decided to turn to the courts to get the price demanded.

Antitrust Office Examines New Press Distribution Company Aboservis

The Antitrust Office (PMU) started to examine a planned establishment of press distribution company Aboservis by Slovak publishers Petit Press, Ecopress, Euroscop-Ringier, Perex and Spolocnost Plus 7 Dni. Ivona Lendova from the concentration department at the PMU informed SITA that the task of the PMU is to examine whether the establishment of the distribution company could have a negative effect or can damage economic competition. Any information about concentration of companies is always the subject of inspection by the PMU. However, Ms. Lendova reminded that at first the PMU has to find out on the basis of the amendment to the law on economic competition valid as of May 1, whether the concentration of these companies is subject to the inspection also under the new conditions.

SEPS Closed 2003 with a Net Profit of SKK 689.6 Million

Operator of the national electricity transmission network Slovenska Energeticka a Prenosova Sustava (SEPS) closed last year with a net profit of SKK 689.6 million, up 94.5 percent compared with 2002. Company’s total revenues were SKK 15.029 billion, while total costs were SKK 14.093 billion, informed the company’s spokeswoman Alena Melicharkova.