Five-Month Profit of Construction Firm Banske Stavby at SKK 20.2 Mln.

Construction firm Banske Stavby, a.s., Prievidza closed the first five months of this year with a gross profit of SKK 20.2 million. Output of the company in the monitored period reached SKK 346.8 million. „Construction works represented a decisive portion of output, amounting to SKK 287.1 million in the first quarter of this year. This is an increase of 69 percent when compared with the same period of the last year,“ economic director Vladimira Herchelova told SITA.

Antitrust Office is Examining Banka Slovakia Takeover by Meinl Bank

The Antitrust Office of the Slovak Republic has started administrative proceedings concerning the takeover of Banka Slovakia, a.s., Banska Bystrica by Austrian Meinl Bank Aktiengesellschaft. The proceedings started on May 30, according to data provided by the Antitrust Office. Meinl Bank signed a contract to buy 60.07 percent of Banka Slovakia in May. It has bought a majority stake in Banka Slovakia for a preliminary price of SKK 360 million.

Parliament Moves Excise Tax Bills to the Second Reading

On Wednesday, the second day of its thirteenth session, parliament continues discussing the cabinet amendments to the laws on excise taxes in the second reading. The cabinet proposes to increase the excise tax on tobacco, beer, and mineral oils from July of this year. If the amendments go through, the price of one half-liter bottle of beer will rise by SKK 1. Smokers should pay SKK 9 more per pack of cigarettes after the increase. The higher excise tax on mineral oils should increase the price of motor fuels by SKK 2-3.50 per liter. The cabinet expects the higher excise taxes to bring SKK 3.7 billion into the state budget this year.

Antitrust Office OKs Kontinuita and Wiener Stadtische Concentration

The Antitrust Office has issued a decision on May 29, approving the concentration of insurance companies Kontinuita-Slovenska Zivotna Poistovna and Austrian Wiener Stadtische. The decision took effect on June 2, the office informed SITA. The Austrian insurance company bought a 67-percent stake in Slovak insurer Kontinuita Slovenska Zivotna Poistovna from 1. Garantovana last year.

Cabinet Throws Out a Deputy Draft of a Bill Regulating Retail Chains

At its regular session on Wednesday, the cabinet turned down a draft bill regulating retail chains, as proposed by the strongest opposition party in Slovakia SMER. It has accepted reservations raised by Economy Minister Robert Nemcsics, who submitted the bill to the cabinet. He said it is unnecessary to adopt a special law to regulate retail chains in Slovakia at the moment. The bill’s author, SMER leader Robert Fico asserts that legislation in Germany, Portugal, France, or Italy regulates activities of retail chains in a similar way. The law was intended to prevent retail chains from misusing their dominant market position and restrict their unfair business practices.

Slovakia will Restructure its Network of Diplomatic Representations

Slovakia’s upcoming accession to the European Union and NATO will also increase the demands on the proper preparation for the final phase of the country’s integration to the Euroatlantic structures and strengthening Slovakia’s position in these structures as its full-pledged member. “ These tasks will require strengthening Slovakia’s missions at the European Community and NATO, its embassies in member countries of these organizations, as well as in third countries,“ reads a report of the Foreign Affairs Ministry approved by the cabinet on Wednesday. The Ministry suggested opening diplomatic representations in Astana (Kazakhstan), Kuwait, Rabat (Morocco), Luxembourg, Sarajevo (Bosnia) and general consulates in Los Angeles and Hongkong.

Cabinet OKs Statistics Report on Macroeconomic Tendencies in 2003

The Slovak Statistics Office estimates GDP growth in Slovakia at 4.1 percent in 2003, according to the statistic report on basic economic tendencies in the Slovak economy, okayed by cabinet at its Wednesday session. Average midyear inflation should be 8.4 percent and it should reach 8.7 percent at the end of this year. The unemployment rate is predicted at 17.8 percent and the average nominal monthly wage in the Slovak economy should grow 7.5 percent y/y to SKK 14,520. However, the real monthly wage should eventually shrink by 0.8 percent y/y.

National Bank of Slovakia will Revise its Budget for this Year

The National Bank of Slovakia (NBS) should officially revise its budget for this year within two weeks or one month at the latest. „With regard to the development of the Slovak crown’s exchange rate, losses of the central bank are currently higher than expected,“ NBS Governor Marian Jusko told the press following the cabinet meeting on Wednesday. The loss of the central bank deepened to SKK 16.629 billion in five months of this year. The planned loss for the whole year is SKK 6.342 billion.

Grafobal Packaging Maker Plans Profit of SKK 80.4 Mln. in 2003

Slovak packaging maker Grafobal, a.s. Skalica, plans this year to earn pre-tax profit of SKK 80.43 million. Total company revenues are expected to exceed SKK 1.9 billion on sales of its own products and services at SKK 1.81 billion, Grafobal director general Marian Kozisek informed SITA. In his opinion, after Slovakia’s accession in 2004 to the European Union, simplified logistics and increased trade certainty in trading with new partners should have a positive effect on the company.

Cabinet to Revise Privatization Alternatives for Power Producer SE

In the near future the Coalition Council of the ruling coalition is expected to deal with privatization of power producer Slovenske Elektrarne a.s. (SE) in association with the announced interest of Czech power company CEZ to enter the process. The preparatory committee for SE privatization recommended to the government in May to approve privatization of the 49 percent stake in restructured subsidiaries of the power company, while CEZ was interested in the privatization of SE as a whole. „Taking into account additional interest from CEZ in the SE privatization, the document should be revised as a whole,“ said Economy Minister Robert Nemcsics after the cabinet’s meeting on Wednesday.

UFT to Charge Less for Approving a Security Prospectus from August

The fees that the Financial Market Office’s (UFT) charges for approving a security prospectus should change from August. The Finance Ministry assumes that the current fees are strongly discouraging and decrease the competitiveness of companies‘ long-term financing through bond issues against other forms of financing, such as bank loans. The change in UFT’s fees should halt the decline of new issues of corporate and municipal bonds on the stock market. The Finance Ministry warns that if the current situation on the stock market remains unresolved, it could lead to the complete absence of corporate and municipal bonds on the market.

STOCK MARKET: SAX Share Index Ups to 153.21 Points on Wednesday

On Wednesday, the Slovak official SAX share index continued its gains rising 2.87 percent or 4.27 points to 153.21 points. Turnover on the Bratislava Stock Exchange (BCPB) dropped from SKK 4.76 billion on Tuesday to SKK 2.77 billion on Wednesday with SKK 30.8 million in share trading.

Interbank Sector in SKK 4.5 Bln. Liquidity Surplus on Wednesday

Activity was low on the money market on Wednesday. The settlement of Tuesday sterilization repo contracts with the National Bank of Slovakia (NBS) switched a liquidity deficit on the market into a surplus. This moved prices of the shortest deposits to 5 percent p.a. Prices of one-week deposits closed at 5.45/5.65 percent p.a., two-week deposits were quoted at 5.8/6.0 percent p.a. and one-month deposits were traded at 6.1/6.4 percent p.a. Two-month and three-month deposits closed at 6.1/6.4 percent p.a., six-month deposits at 5.9/6.2 percent and nine-month deposits fluctuated around 5.6/5.8 percent p.a. Twelve-month increased to 5.4/5.7 percent p.a.

Ceram Cab Reports Revenues of SKK 218 Mln. in Five-Months of 2003

Ceramic insulator producer Ceram Cab, a.s., Nove Sady reported operating profit of SKK 22 million in five months of 2003. Compared with the previous year this represents growth at close to 5 percent, stated the company’s general director Ivan Kosalko. Company revenues dropped by SKK 22 million y/y to SKK 218 million. The director attributes this temporary decline to a time shift of activities on the local market and reduced demand in the United States.

Slovak Crown Weakens to 41.575/600 SKK/EUR on Wednesday

Development of the Slovak crown on the FOREX market on Wednesday again copied currency movements in neighboring countries. The Slovak currency depreciated by 10 hallers to 41.575/600 SKK/EUR. On the euro-dollar market the US currency appreciated towards the euro to 1.1714/1715 USD/EUR. The Slovak crown thus weakened to 35.470/530 SKK/USD. The cross rate of the Slovak and Czech crowns was 1.3230/3260 SKK/CZK at the close of the session.

Malt Exports of Heineken Slovensko will Get Most from IPA Subsidies

The Slovak agricultural intervention agency IPA evaluated tenders for subsidies of malt exports and processing of poultry. Seven companies will export a total of 65,000 tons of malt with IPA support. The subsidy per ton of exported malt is SKK 1,230. Malt plant Sladovne Nitra, belonging to Heineken Slovensko, will export more than half of this volume with export support. Lycos Slovakia and Sladovna Michalovce will export 11,875 tons each. Topvar Topolcany, Malterie Soufflet Velky Saris, Pivovar Saris and Pivovar Tatran Poprad, announced IPA, will export the remainder.