Shareholders of aluminum smelter ZSNP, a.s Ziar nad Hronom agreed at their extraordinary general meeting on September 2 to withdraw from trading ZSNP shares on the Bratislava Stock Exchange (BCPB). „Shares issued by ZSNP will not be traded on the stock exchange in Slovakia or abroad, a listed market or regulated open market, or any other market of the stock exchange,“ member of the board of directors of ZSNP Jozef Oravkin said. The shareholders further agreed to change the form of ZSNP shares from bearer shares in book-entry form to registered shares in document form and adopted corresponding changes in the company’s statutes.

Spa Kupele Novy Smokovec Closed H1 in the Black

Spa Kupele Novy Smokovec, a.s., closed the first half of this year with a pre-tax profit of SKK 2.4 million. This was a major improvement compared with last year when the company ended the first six months with a loss of SKK 714,000. During the monitored period Kupele Novy Smokovec earned an operating profit of SKK 3 million, up SKK 5.2 million y/y. The loss from financial operations increased from SKK 24,000 in H1 2003 to SKK 681,000 in H1 2004, the company disclosed on Friday.

Central Bank Reduced its Loss to SKK 10 Bln. at the End of August

The Slovak central bank, the National Bank of Slovakia (NBS), has reduced its loss generated so far this year to SKK 10 billion, when it posted a profit of SKK 500 million in August. The bank ascribes the August monthly profit to the relatively stable exchange rate of the Slovak currency. The Slovak crown weakened towards the euro by 0.2 percent and towards the US dollar by 0.11 percent over August.

Trade Deficit for 2003 Revised Downward to SKK 23.435 Bln.

Definite data of the Statistics Office for 2003 show that the trade deficit of the Slovak Republic was SKK 23.435 billion. According to preliminary data reported in February, the trade gap in 2003 was SKK 23.588 billion. Compared with 2002, this represents an improvement by SKK 72.523 billion, or 75.6 percent.

Bardejovske Kupele Spa Reports a Loss of SKK 2 Mln. at End of June

Bardejovske Kupele, a.s., Bardejov spa reports a loss of SKK 2 million for the first half of this year, while in the comparable period of last year its profit was SKK 8.8 million. Operating loss of SKK 0.2 million was deepened by a loss from financial operations of SKK 2.1 million. „The company produced a loss because has not managed to reduce costs,“ Finance Director Maria Pisarcikova said. She added that sales of spa treatment and other services totaled SKK 80 million at the end of June. This is SKK 35 million less that last year. The spa treated 8,231 patients, which is 486 less than a year ago. The number of treatment days (number of patients multiplied by number of days) was 106,200, which is 32,000 less than last year. The spa has a capacity of 1,300 beds.

Czech Energy Company CEZ Submits Updated Bid for SE Majority Stake

Czech energy company CEZ submitted to the National Property Fund (FNM) a revised binding bid to acquire a 66-percent stake in Slovak dominant power producer Slovenske Elektrarne (SE) on Friday. CEZ spokesman Ladislav Kriz informed that the company regards its bid as the most reasonable. “The Slovak and Czech energy sectors have developed as a unified system for decades. Now, SE and CEZ can continue this tradition and significantly strengthen their position in the region of central Europe,” said director general and head of the board of directors of CEZ Martin Roman.

All Three Bidders Submit Updated Bids for SE

The Ministry of Economy has confirmed for SITA news agency that all three bidders in the privatization of a 66-percent stake in Slovak dominant power producer Slovenske Elektrarne (SE) have submitted their updated bids by the set deadline. This means that Russian InterRAO, Italian Enel and Czech CEZ remain in the race.

Metallurgical Industry Reports H1 Sales of SKK 51.14 Bln.

Companies in the Slovak metallurgical industry reported sales of their own output and goods at SKK 51.14 billion during the first six months of this year. Compared with the previous year’s period, sales remained almost unchanged. Companies‘ sales from industrial activities grew 8 percent y/y to SKK 55.391 billion at the end of June, the Economy Ministry reported on Friday.

Slovakia’s FOREX Reserves Down to USD 14.3209 Bln.

The foreign exchange (FOREX) reserves of Slovakia decreased during the past week by USD 562.6 million to stand at USD 14.3209 billion on August 31. Commercial bank reserves were the primary cause of this drop, going down USD 429.1 million to USD 1.1934 billion. The reserve assets of the central bank decreased as well, by USD 133.5 million to USD 13.1275 billion, the NBS press department informed SITA on Friday.

Istrokapital Shareholders Decide to Retain Profit in Company

Shareholders of financial group Istrokapital, a.s. Bratislava decided on Friday to retain net profit within the company. The money will be invested into its development. Miroslav Remeta from the Istrokapital board of directors said that out of last year’s net profit of SKK 21.1 million, 10 percent set by law went to the reserve fund, while about SKK 2 million covered losses from previous periods. The shareholders decided to keep the remainder in the retained earnings account.

National Railway Company ZSSK Laid Off 380 People over H1 2004

National railway company Zeleznicna Spolocnost (ZSSK) reduced its labor force by 380 people over the first half of this year. The number of employees decreased by 441 in a year-on-year comparison. This information stems from an evaluation of the company’s 2004 business plan, based on which the company employed 18,045 people in late June compared with 18,425 from the beginning of the year. ZSSK registered the most significant labor force cuts in its organizational units in Kosice (129 people) and in Bratislava (125 people). It expects to cut its labor force by an additional 377 people by the end of this year.

Fifth BSE Case Confirmed in Slovakia this Year

The State Veterinary Institute in Zvolen confirmed on Friday the fifth case of bovine spongiform encephalopathy (BSE), or mad cow disease, this year in Slovakia. The test found the brain-wasting infection in a 42-month old cow from the Zahradne farm owned by the Tulcik cooperative in eastern Slovakia, vets told SITA. This is the eighteenth BSE case uncovered in Slovakia so far.

Ministry of Labor Prepares Draft on Using Privatization Income

All state privatization revenues should be used to finance the old-age pension system reform, education system reform and lowering the state debt. This stems from a draft constitutional bill that the Ministry of Labor, Social Affairs and Family presented for interdepartmental review on Friday, ministry spokesman Martin Danko informed SITA.

InterRAO Increased Price in Updated Bid for 66 Percent of SE

The InterRAO-OstElektra consortium, one of three bidders in the privatization of a 66-percent stake in Slovak dominant power producer Slovenske Elektrarne (SE), offered a higher price in its updated bid. InterRAO director general Evgenyj Dod confirmed this information to SITA news agency. “In our opinion, the value of SE as a whole ranges between SKK 45 billion and SKK 50 billion. However, we deducted from this sum costs stemming from disadvantageous contracts signed by SE and the costs of a rear fuel cycle in our bid,” explained Mr. Dod.

Slovakia to Launch Regional Database by November 2005

The Slovak Statistics Office (SU SR) will launch a regional database to serve in particular for regional planning and the performance of regional policy. The database is scheduled to start its operation by November 2005. Director of the Statistics Office Peter Mach announced at a press conference on Friday that the creation of the regional database is linked with completion of the twinning project Strengthening Regional Statistics – Regstat, initiated by the Statistics Office in 2002.

Textile Company Accord with Sales at SKK 460.3 Mln.

Textile producer Accord Trencin, a.s. closed the first six months of this year with goods sales at SKK 460.3 million, down about SKK 69 million from a year ago. Sales of its own products and services were at SKK 51.5 million. The company generated added value of SKK 51.6 million at the end of June, which is SKK 11 million more y/y, stated the company’s director Jaroslav Dobrotka.

Hyundai/Kia Project Manager Again Fails to Agree with Landowners

Companies Zilina Invest, Govinvest I and Govinvest II attempted to reach agreement with the petition committee on a compromise in the sale of plots for the Hyundai/Kia investment at their meeting on Friday. The Hyundai/Kia project manager general Stanislav Vinc told a news conference that the companies were proposing to include in contracts with landowners a clause that would guarantee they will accept the price increase, if the court decides so. „However, the petition committee refused to accept this clause,“ said Mr. Vinc.

Spring Manufacturer PFS Earned Midyear Sales of SKK 217.9 Million

Manufacturer of springs and metal wire products PFS, a.s. Brezova pod Bradlom earned sales for its own production and services of SKK 217.9 million over the first half of this year, meaning an 11-percent growth on year-on-year terms. Generated added value grew 8 percent to SKK 82 million, Branislav Skapik from the company informed SITA. The improvement is related to overall improvement of Slovak economy and increased orders from automotive industry, he said. Total H1 output was at SKK 234.3 million, the midyear profit grew 11 percent y/y to SKK 14.5 million.

H1 Pre-Tax Profit of Slovak Industrial Companies Up to SKK 57.3 Bln.

The Slovak industrial companies ended the first half of 2004 with an aggregate pre-tax profit at SKK 57.3 billion, which is an increase of 5 percent when compared with the same period of 2002. Sales without value added tax and excise taxes reached SKK 625.6 billion, up 11.8 percent y/y, the Economy Ministry informed SITA on Friday.

Money Market Reports Quiet Trading on Friday

The atmosphere on the money market was very calm on Friday. ING Bank dealer Martin Koska told SITA that commercial banks deposited SKK 14.493 billion in their reserve accounts in the central bank, meeting the minimum reserve requirement on a cumulative basis at 80.75 percent as of Sunday.

STOCK MARKET: SAX Index Hits New High at the End of Week

Shares of VUB bank and power engineering company SES Tlmace firmed the official share index SAX to 205.96 points on Friday. The index grew 0.39 percent, or 0.8 points. Last time the SAX hit higher level was more than seven years ago, on April 7, 1997, when it closed at 207.53 points. Turnover on the Bratislava Stock Exchange (BCPB) rapidly decreased from SKK 2.704 billion on Thursday to SKK 136.5 million on Friday with a mere SKK 1.5 million in share trading.

FOREX MARKET: Crown Weakens to 40.120/150 SKK/EUR on Friday

The Slovak crown weakened on the FOREX market on Friday from the opening 40.070/100 to 40.120/1500 SKK/EUR, Slovenska Sporitelna dealer Juraj Zabadal told SITA. “Slovak crown weakened in reaction to weakening of the Czech crown, following lowering of rating for the Czech Republic by Standard &Poor’s from “A+” to “A”,” he said.

Savers May Change Pension Fund Management Company Twice a Year

Citizens, who decide to deposit a part of pension-insurance payments on their personal accounts in a pension fund management company, should have a possibility to switch for free to other pension fund management company each six months. The information stems from the draft revision to the law on old-age pension savings, submitted by the Labor and Social Affairs Ministry for an interdepartmental review. The current law only enables to change pension fund management companies for free once a year, the ministry’s spokesman Martin Danko informed SITA.