Definitive results show billed premiums of insurance companies that are members of the Slovak Association of Insurance Companies (SAP) at SKK 41.811 billion in 2003, an increase of 15.2 percent y/y. Billed premiums in the life insurance segment grew 8.5 percent to SKK 17.01 billion. Non-life insurance posted a 20.4 percent y/y growth to SKK 24.8 billion, making up almost 60 percent of total billed premiums in 2003. As of late December, 28 insurance companies operated in Slovakia, of which 21 were SAP members, SAP President Marek Jankovic informed SITA.

Food and Agriculture Chamber Demands Abolition of Land Tax

Slovak Food and Agriculture Chamber (SPPK) insists on its demand for the abolition of land tax. According to spokesman for the chamber Stanislav Nemec, representatives of the government have promised to abolish the tax already last year and the abolition should be in line with the agriculture and food policy document until 2006. However, the SPPK has not persuaded the Ministry of Finance to abolish the tax during negotiations on the draft bill on local taxes on Wednesday.

Cabinet Expects Social Situation to Improve in Coming Years

Upcoming years should be favorable from the viewpoint of development of social situation in Slovakia if orientation of its economic policy is preserved, suggests a report on the social situation of the Slovak population in 2003, approved by the cabinet on Thursday. The Slovak government, as well as local and foreign institutions prognosticate improvement of the social situation in the country. According to the report, the positive trend on the labor market should continue in the years 2004-2007. Employment is expected to grow as a result of growth of new production activities, increasing demand, as well as active labor-market policy, aimed to support interest in work.

General Logistics Systems Holding Founded a Subsidiary in Slovakia

International company GLS General Logistics Systems Holding seated in Amsterdam, which provides parcel-distribution services, has recently founded its subsidiary in the town of Zilina, northern Slovakia. The company has invested EUR 1 million so far. The investments covered purchase costs of information technologies, technologies for processing of parcels and into creation of jobs. Lilla Szerencses informed journalists at a press conference on Thursday.

Clothing Maker Makyta with Q1 Sales of SKK 243.4 Mln.

Traditional clothing maker Makyta, a.s., Puchov reported sales of SKK 243.4 million for the first quarter of this year. This is an increase of 23 percent from the same period of 2003. The Q1 export of the company reached SKK 207.2 million, up 54.1 million. Makyta’s authorized representative Miroslav Macak ascribed the export growth to winning of new customers in Denmark, Italy and Germany and increased exports to Russia.

Output of Cable Research Company VUKI was SKK 158.3 Million in 2003

Cable and insulator research and development company VUKI, a.s., Bratislava posted last year’s production of SKK 158.3 million. The production was lower by SKK 22.2 million than in 2002, while the generated added value dropped 25 percent to SKK 38.5 million. The company closed 2003 with a loss of SKK 0.9 million. Operating profit of SKK 2.8 million meant a y/y decrease of 55 percent from 2002. The loss from financial operations was SKK 3.8 million, informed the company.

Large Industrial Energy Consumers Set Up their Association

Club 500 and the Association of Energy Managers (AEM) founded the Association of Industrial Energy Customers (ZPOE) on Wednesday. The association’s ambition is to cluster fifty large industrial customers, whose aggregate energy consumption would be at least one-quarter to one-third of Slovakia’s total power consumption, Club 500 executive director Tibor Gregor told SITA. “We want the weight of large industrial power customers to be respected by all those who secure access to energy, that is guaranteed for everyone in the Slovak Constitution,” stated Mr. Gregor.

Dzurinda: Labor Market Reciprocal Measures Would Not Be Effective

Imposing reciprocal measures on the Slovak labor market to limit employment of citizens from the European Union (EU) in Slovakia would be a nervous gesture rather than a real necessity. Slovak Prime Minister Mikulas Dzurinda said this during parliamentary question time on Thursday. He explained that Slovakia does not expect massive immigration of EU countries that could threaten the situation on the local labor market. Such measures would be contrary to the interest of the country to attract foreign investment, claims the prime minister. He added that in spite of protective measures imposed by old EU members against the new entrants, Slovak citizens still have possibilities to get employed in the EU.

Central Bank Accepts only Maturing Volume in Auction of its Bills

Demand of banking houses in the auction of 84-day bills of the National Bank of Slovakia (NBS) on Thursday reached SKK 37.762 billion. However, the central bank only accepted SKK 20 billion, maturing on Friday. The minimum yield in the auction amounted to 4.74 percent p.a., the average 4.84 percent p.a. and the ceiling 4.88 percent p.a. After settlement of cash flows from the current and maturing NBS auctions, the sector should remain in a moderate liquidity surplus. Overnights were traded at 3.8/4.0 percent p.a., while tom/nexts and spot/nexts were at 4.1/4.3 percent p.a. Twelve-month deposits were quoted at 4.4/4.6 percent p.a.

SAX Up to 188.38 Points on Gains of VUB and Nafta Shares on Thursday

The official SAX share index strengthened on Thursday under the influence of rising share price of VUB banking house and Nafta gas storage company. The index went up 0.21 percent or 0.4 points to 188.38 points. Turnover on the Bratislava Stock Exchange (BCPB) grew from SKK 316.5 million on Wednesday to SKK 397.9 million, with a mere SKK 6.7 million in share trading.

FOREX MARKET: Slovak Crown Weakens along with Forint and Zloty

The Slovak crown weakened against the euro from 40.24/40.27 SKK/EUR to 40.31/40.33 SKK/EUR on Thursday. The crown’s exchange rate hit its weakest level at 40.35 SKK/EUR. The US dollar was quoted at 1.184 USD/EUR. The final exchange rate of the Slovak crown against the US dollar thus got to 34.03/34.06 SKK/USD. The cross rate of the Slovak and Czech crowns hit its high since the beginning of the year at 1.262/1.264 SKK/CZK on Thursday.

Merina Woolen Fabric Maker Expects 2004 Profit of SKK 33.8 Mln.

Woolen fabric producer Merina, a.s., Trencin plans to close this year with a profit of SKK 33.8 million, with operating profit of SKK 50 million. The projected added value for this year should be SKK 313 million. Merina ended 2003 with an operating loss of SKK 19.1 million. “The company plans have 860 workers this year”, informs financial director of the company Juraj Holec, explaining that in the beginning of last year the number of employees was 1,052.

MPs Pass Slovenska Posta’s Transformation to a Joint-Stock Company

State-run postal service company Slovenska Posta will be transformed to a joint-stock company as of July 1, 2004. Its headquarters will remain in Banska Bystrica, decided MPs of the Slovak Parliament by approving the bill on its transformation. The transformation will also include an internal restructuring, within which the number of management levels will be reduced. The so-called regional postal centers will replace current post directorates and post centers and directly manage postal services.

Gas Utility SPP Transfers SKK 9 Bln in Dividends to the FNM

Gas utility Slovensky Plynarensky Priemysel (SPP) transferred on Thursday over SKK 9 billion to the state budget in dividends from last year’s profit, SPP spokeswoman Dana Krsakova confirmed to SITA. The money will flow to the government privatization agency National Property Fund (FNM), which controls 51 percent in the gas utility. “We will use the money in line with the approved FNM budget and based on contracts with individual ministries,” said FNM spokeswoman Tatjana Lesajova. SPP earned a net profit of SKK 20.5 billion last year. The company’s shareholders, at their session last Friday, approved a payment of dividends of SKK 18.481 billion. With regards to its 51-percent stake in the company, the government should get about SKK 9.425 billion.

Ministries Want Spending Limit Higher by SKK 21.4 Bln. for 2005

Individual ministries demand that expenditures in 2005 state budget outlines be increased by an aggregate sum of over SKK 21.4 billion. “They submitted to the Finance Ministry a list of obligatory expenditures which, in their opinion, have not been secured in spending limits projected in the state budget outlines for 2005-2007,” Finance Minister’s spokesman Peter Papanek told SITA. Outlines of next years’ state budget count with a SKK 12 billion reserve for obligatory expenditures and priorities of the government, of which SKK 11.2 billion is still undistributed. Interior Ministry asks the Finance Ministry for the highest increase in spending. It wants additional SKK 3.9 billion. The Economy Ministry requests additional SKK 3.5 billion for obligatory expenditures and the Education Ministry SKK 3.4 billion. The Defense Ministry wants its spending limit for next year to be increased by SKK 2.5 billion and the Health Ministry by SKK 1.5 billion.

Hewlett Packard Opens European IT Operation Center in Slovakia

Executive Vice-President of Hewlett-Packard (HP) Ann Livermore and the State Secretary for the Slovak Transport Ministry Jan Kotula opened the company’s new European IT operation center in Slovakia on Thursday. The new center with a non-stop operation will provide solutions and high-quality services to HP customers from Europe, the Middle East and Africa. It represents a significant investment for HP, as well as the Slovak Republic. “The newly opened European IT operation center in Bratislava confirmed that Slovakia is getting on the map of IT investors,” stressed director general of HP Slovakia Peter Weber. The center will employ professionals not only from the Slovak capital, but also other regions with higher concentration of professionals with respective university education.