In June, the state budged deepened its deficit by over SK 10 billion to close the first half of 2004 with an aggregate gap of SKK 12.455 billion. At the end of May the deficit was only SKK 2.27 billion. Preliminary figures show total revenues of the state budget at SKK 120.695 billion over the January-June period, making up 52 percent of the figure planned for the year 2004. The revenues were SKK 19.761 billion higher than a year ago. Expenditures stood at SKK 133.15 billion, which is 42.9 percent of the annual projection, the Finance Ministry informed SITA on Thursday. The state budget projects revenues in 2004 at SKK 231.958 billion and expenditures at SKK 310.453 billion. The planned state budget deficit is SKK 78.495 billion.

CDCP Ready to Launch Independent Operation From August

The Central Securities Depository (CDCP) is functional and ready to launch its independent operation from August 1, reads an IT expert opinion on the functionality of the CDCP system of clearing and settlement of capital market transactions. “An independent court appointed IT expert assessed the system’s functionality and pronounced that it meets technical requirements set by law on securities and investment services, and that all conditions have been fulfilled to launch the routine operation of the system” CDCP spokeswoman Zelmira Habanova said to SITA.

Bringing Prices of Dairy Product to EU Levels Stabilizes the Industry

Bringing up prices of Slovak dairy products to the level common in other European Union countries is the only way to stabilize the dairy industry. The Association of Slovak Dairies (SMZ) writes this in its statement regarding the shortage of butter on the Slovak market. According to the association, under the influence of persisting bad situation on the domestic market, dairies have been forced to seek solutions in neighboring countries. By finding butter buyers who were willing to pay higher purchase prices with immediate or short-term term payment beyond Slovak borders, they have temporarily solved their biggest problems.

Slovak Telecom to Appeal against Market Regulator’s Decision

Dominant Slovak fixed line voice service telecommunications provider Slovak Telecom will appeal against the decision of market regulator the Telecommunications Office (TU) on conditions for interconnecting networks between Slovak Telecom and alternative operators. “Slovak Telecom, similarly as some alternative operators, welcomes the decision of TU. However, the decision contains clauses that are not acceptable for the company, which will therefore file an appeal against it”, reads the statement of the Slovak Telecom. The dominant operator thus follows the example of one of the leading alternative operators, eTel Slovensko, which decided to appeal against the decision earlier this week.

June’s Low VAT Collection will not Endanger this Year’s Target

The low collection of value-added tax (VAT) in June is a consequence of legislative changes that followed Slovakia’s accession to the European Union (EU) on May 1. Head of the Finance Ministry’s press department Mikulas Gera told SITA that the ministry expected such development. “The shortfall is in line with expectations, thus we have no concerns that this year’s target would not be met,“ said Mr. Gera.

Telecom Office Grants Terrestrial Digital Broadcasting Frequencies

The Telecommunications Office, the regulatory office for the telecommunications market, has allocated frequencies for terrestrial digital broadcasting within the pilot project of implementing digital broadcasting in Slovakia. The office granted the 59th channel for the locality of Banska Bystrica and Zvolen to Slovak Telecom’s Radiokomunikacie. Telecom Corp. received the 44th channel for the locality of Kosice and Presov. The office will allocate to the above companies frequencies to be used to set up and operate radio facilities designed to provide public telecommunications service for the period until June 30, 2006. TV programs will account for the greater portion of the provided service while other data services will make up the rest.

MEE Service Using Biomass to be Launched in Slovakia

Infotech Slovakia, s.r.o. is bringing a service to Slovakia called Management of Energy Effectiveness (MEE) with the use of biomass. As the company director Zbigniew Kocur informed at a press conference on Thursday, the service is based on introducing cheaper heating for towns and villages. “The aim of the project is to enable the construction of energy sources using biomass without the need for individual towns, villages or industrial companies to participate in the financing,“ said Mr. Kocur.

Slovak Telecom Reports 100,000th Customer Connected to Internet

The Internet division of Slovak Telecom (ST) connected its 100,000th customer to the Internet in June. As the company informed, out of the total number of customers using ST Online Internet Services, 92 percent connect to the Internet via a classic phone line or ISDN and modem (using dial-up connection). Another eight percent use services that allow high-speed broadband connection to the Internet, i.e. DSL DATA or DSL FLAT.

Social Security Provider Will Not Threaten Launching Pension Reform

Social security provider Socialna Poistovna will not endanger the planned launch of the capitalization pillar of the old-age pension system from January 1 next year. The institution’s management is able to prepare it for all duties related to old-age pension saving, deputy chairman of Slovenska Poistovna board of directors Michal Horvath said at a press conference on Thursday. There is a certain time delay in the area of information systems, he admitted, adding that this should not affect duties performed by Socialna Poistovna. According to Mr. Horvath there are certain factors outside this institution that threaten the reform, for example, the insufficient technical preparedness of the National Bank of Slovakia (NBS) to manage accounts within the capitalization pillar.

Ulrich Scholer has Become New Chairman of SPP Board of Directors

Ulrich Scholer, representing German Ruhrgas AG in gas utility SPP, has become the new head of the SPP board of directors. SPP spokeswoman Dana Krsakova informed SITA that the vote of the new board of directors’ head took place on the basis of a shareholder agreement on an annual rotation in this post. Mr. Scholer has replaced Philipp Bouncly.

NGOs Concerned about Slovak Energy Sector Development

Non-governmental organizations (NGOs) in the environmental sector are concerned about the development of the Slovak energy industry. Pavol Siroky from the Mother Earth organization informed SITA that NGOs appealed to the Economy Ministry not to evoke public concerns with speculations about an approaching power crisis. “The upcoming privatization of dominant power producer Slovenske Elektrarne, a.s. (SE), growing pressure from some lobby groups to complete construction of the third and fourth reactors at Mochovce nuclear power plant, as well as constant questioning of the current energy policy in the Slovak Republic should not lead to hasty and non-systematic solutions,” said Mr. Siroky.

Wardrobe Producer Komandor Plans 2004 Turnover at SKK 150 Mln.

Komandor, s.r.o., a producer of customized wardrobes with sliding door systems, plans to increase its production and wholesale turnover to SKK 150 million this year, up from SKK 127 million in 2003. Komandor director Roman Wagner said that the company has registered stagnation in real estate trade in Slovakia as of April and thus the company started thinking about exporting its activities, in particular to Austria and Switzerland.

Trucks and Buses also Need Highway Stickers Beyond Highways

From Thursday, July 1, all motor vehicles whose weights exceed 3.5 tons also need highway stickers on some selected sections of the first category of roads in Slovakia. Spokesman for the Minister of Transport, Postal Services and Telecommunications Tomas Sarluska informed SITA about this latest piece of traffic legislation. The first category of roads to which this rule applies will be marked by a traffic sign with a text in three languages informing of the duty to have a highway sticker to use them. Stickers are available at post offices and petrol stations.

FOREX MARKET: Strong Demand Pushes Crown to Strongest-Ever Level

One day after the Slovak central bank cut key interest rate by fifty basis points, huge demand for the Slovak crown moved the local currency to its all-time high on Thursday. CSOB dealer Richard Brza told SITA that the crown went from the initial 39.86 SKK/EUR to 39.75 SKK/EUR. “The exchange rate easily strengthened below the level of 39.90 SKK/EUR,” stated Mr. Brza, adding that chiefly foreign banks were selling euros on the Slovak FOREX market.

ASP Insurer to Use 2003 Profit Chiefly to Cover Previous Year’s Loss

At their annual general meeting on Thursday, shareholders of insurance company Allianz-Slovenska Poistovna, a.s. (ASP) approved a proposal to distribute last year’s profit, amounting to SKK 860.5 million. ASP will use SKK 700.4 million to settle losses from previous years, while SKK 65.5 million will be retained within the company and the remaining portion transferred to the compulsory reserve and social fund. The insurer plans to close 2004 in positive territory and with billed premiums of SKK 20 billion, ASP spokeswoman Lucia Muthova informed SITA.

MONEY MARKET: NBS Rolls Over Maturing Volume in Bill Auction

The National Bank of Slovakia (NBS) rolled over the maturing volume in the auction of its bills on Thursday. It accepted SKK 20 billion from bank bids totaling as much as SKK 43.41 billion, Slovenska Sporitelna dealer Pavel Janosik informed SITA. “It is a good signal for the market and the central bank might also renew the maturing volume in next week’s repo tender,” he said. The average yield in the auction was 4.13 percent p.a., the minimum 3.79 percent p.a. and maximum 4.27 percent p.a.

STOCK MARKET: SAX Rebounds on Thursday After Four Days of Losses

The Slovak SAX share index that had been gradually weakening since Monday, registered growth on Thursday thanks to all of the shares traded on the stock exchange floor that day. These included the shares of Slovnaft oil refinery, the VUB and OTP banks and SES Tlmace power engineering company. The SAX index grew by 1.24 percent or 2.42 points to 198.07 points. The volume of transactions on the Bratislava Stock Exchange dropped from Wednesday’s SKK 642.7 million to 255.15 million on Thursday, thereof SKK 20.956 million in share trading.

EU will Deal with Slovakia’s Excessive Public Finance Deficit

The Ministerial Council of the European Union (EU) should open talks on launching an assessment into the Slovak Republic’s excessive deficit. Slovakia’s public finance deficit is exceeding the 3-percent limit, set by the Pact of Growth and Stability that Slovakia is obliged to follow after its EU entry. According to sources close to the EU, the twenty-five EU finance ministers should also approve draft recommendations that Slovakia must adopt to reduce the deficit below 3 percent of GDP.

Banking Association Claims CDCP System is Still Unusable

According to the Slovak Banks Association, neither members of the Central Securities Depository (CDCP), nor members of the Bratislava Stock Exchange (BCPB) have tested the new version of the CDCP information system so far. “Based on the agreement within the working group, it will be tested in the next few weeks,” stated representatives of the Slovak Banks Association, adding that the CDCP has already several times declared that the module is functional, but subsequent testing proved rather the opposite.