Receiver of Bankrupt PPS Detva Refuses Reasons for his Dismissal

The receiver of assets in bankrupt engineering company PPS Detva Holding, a.s., Vladimir Rybovic, refuses the reasons for which the largest creditors – social security provider Socialna Poistovna, health insurer Vseobecna Zdravotna Poistovna, the National Labor Office and state bailout agency Slovenska Konsolidacna – wanted him replaced. Mr. Rybovic told SITA he was objectively, and within required deadlines, informing creditors about the situation and progress in the sale of bankruptcy assets. Similarly, he informed them about the preliminary court ruling, banning any handling of the bankrupt company’s assets. He is not aware of failing to respect recommendations from the creditor committee.

Assets of DDP Tatry-Sympatia Policyholders Exceeded SKK 5 Bln.

Assets of policyholders of supplemental pension insurance company Prva Doplnkova Dochodkova Poistovna (DDP) Tatry-Sympatia exceeded SKK 5 billion as of June 20, director Michal Nemec informed the press on Tuesday. The insurer registered over 273,000 policyholders and over 4,800 employer contracts. Since the beginning of this year, DDP Tatry-Sympatia has recruited 35,100 new clients and made 965 new employer contracts.

Deutsche Telekom May be Ready to Negotiate Sale of Radiokomunikacie

Slovak Transport Minister Pavol Prokopovic sees as realistic government’s chances to regain control over Radiokomunikacie, a subsidiary of Slovak Telecom. The government has expressed relevant interest and held talks with the majority shareholder in Slovak Telecom, Deutsche Telekom (DT) after replacement of its management. “At present we have signed a letter of intent with the new management of the Deutsche Telecom on further cooperation, while the company accepts a transfer of Radiokomunikacie to the government, “ said Mr. Prokopovic at the Tuesday’s meeting organized by the U.S. Chamber of Commerce in Slovakia. A joint working team of the government and the Deutsche Telekom should settle precise terms of the transfer.

Privatization Plan of Power Utility SE on Cabinet Agenda in September

Economy Minister Robert Nemcsics should submit the material headlined “Succession of steps in privatization of power utility Slovenske Elektrarne with regards to key problems” to the cabinet by September 30. The same deadline also applies to the Economy Ministry’s proposal of methods of privatizing heating joint-stock companies. The ministry has specified these tasks in a document outlining its future privatization intentions to be submitted for an interdepartmental review.

Central Securities Register with SKK 26.3 Mln. Net Profit in 2002

The Central Securities Register (SCP) closed last year with a net profit of SKK 26.3 million, compared with the loss of SKK 25.4 million it made a year ago. SCP managed to improve its performance chiefly thanks to increased revenues from unplanned issues following the privatization of state companies, the split of power utility Slovenske Elektrarne, and fees for administration of securities accounts. The profit was made despite a 47.2-percent decrease in the total number of processed service instruction, director general Emilia Palkova informed SITA. Total revenues of SCP reached SKK 509.2 million and expenditures SKK 483 million in 2002.

Prokopovic Wants to Announce First Highway Tender in September

Transport Minister Pavol Prokopovic believes that already this week the cabinet will approve revised projects for new highway construction so that preparations can begin as soon as possible. The material has already been on the agenda of cabinet talks; however, representatives of the Party of Hungarian Coalition (SMK) used the right of veto, demanding that the project be discussed first at the Coalition Council. The Transport Ministry wants to announce the first international highway construction tender as soon as this September, which requires selection of an advisor and preparation of the tender terms, Mr. Prokopovic announced at Tuesday’s meeting organized by the U.S. Chamber of Commerce in Slovakia.

Entrepreneurs Criticize the Plan to Introduce a Single Rate VAT

Associations of Slovak entrepreneurs are calling on the cabinet to review its draft bill that introduces a single rate value-added tax (VAT). They want at least two VAT rates to be maintained. Tax reform in the proposed shape gives preference to fiscal approach focused only on fulfillment of state budget revenues and keeping the budget deficit under control, however, it lacks a complex concept of reform as an economic and social model, said representatives of the Association of Employers (AZZZ), the Slovak Chamber of Commerce and Industry (SOPK) and the Slovak Agricultural and Food Chamber (SPPK).

INVESTING: Bond Funds Mostly Suffered Losses Last Week

Almost all bond funds among open-end mutual funds administered by members of the Asset Management Companies Association (ASS) got into moderate losses last week, while the other types of funds continued to slightly gain in value. Equity Fund Telecom of KBC group was doing the best among mutual fund last week, gaining over 5 percent. Net sales of units of mutual funds, the difference between the value of issued and returned units, reached SKK 301.2 million last week, according to weekly data released by ASS.

Slovak Agriculture Ministry Expects a Budget of SKK 18.1 Bln. in 2004

According to the state budget outline for next year, in the year of Slovakia’s accession to the European Union the Agriculture Ministry is expected to have SKK 18.1 billion allocated for its chapter from the state budget. This sum is projected in the case that the government will supplement direct payments for farmers up to 40 percent of the average current payments in present EU member countries. The ministry disagrees with this proposed level and demands that direct payments should be supplemented by the government up to 55 percent allowed by the European Union, which would increase the ministry’s budget by more than SKK 2 billion, Agriculture Minister Zsolt Simon stated at a press conference on Tuesday.

Economy Ministry Proposes Amending Law on Investment Stimuli

According to a draft amendment to the law on investment stimuli submitted by the Economy Ministry for interdepartmental discussion on Tuesday, it would be also possible to provide investment stimuli in the form of direct government assistance, subsidies or grants allocated from the state budget. Investors could receive these subsidies for regional development for financing of moveable and immovable investment assets necessary to launch production or a service.

FOREX MARKET: Mixed Trading in the Slovak Crown on Tuesday

In trading on the Slovak FOREX market the Slovak currency moved in both directions. After it opened against the euro at 41.86/41.90, massive demand for foreign currencies moved the exchange rate to 42.10 SKK/EUR. At this level demand stopped and London banks started to buy the cheaper crown, reversing its exchange rate to 41.78/41.82 SKK/EUR.

MONEY MARKET: NBS Accepts SKK 53.193 Bln. in Repo Tender

Bids by commercial banks in the central bank’s regular two-week sterilization repo tender reached SKK 53.193 billion on Tuesday. SLSP dealer Pavel Janosik told SITA that the National Bank of Slovakia (NBS) accepted the bids in full with an average yield of 6.49 percent p.a. The maximum yield was 6.3 percent p.a. and the minimum was 6.5 percent p.a. On Wednesday, SKK 54.581 billion will return to the sector through maturing NBS repo contracts. Bids in the tender were lower than expected, said the dealer. With regards to the liquidity surplus the central bank could have accepted about SKK 60 billion. After the repo results were announced the prices of overnights dropped to 5.0 percent p.a. Banks deposited SKK 20.651 billion in their reserve accounts in the NBS, meeting the minimum reserve requirement on a cumulative basis at 102.59 percent.

STOCK MARKET: SAX Weakens to 153.66 Points on Tuesday

The official SAX share index weakened only marginally by 0.08 percent or 0.12 points to 153.66 points on Tuesday. Turnover on the Bratislava Stock Exchange (BCPB) has sharply increased from SKK 72.6 million on Monday to SKK 737.3 million on Tuesday with SKK 22.6 million in share trading.

Two Companies Bidding for the Unfinished ZSSK Building in Bratislava

Two Bratislava-based companies, Reding a.s. and Baurex s.r.o. are bidding to buy the unfinished headquarters building of the national railway company ZSSK in Bratislava 1st District. Both companies offered more than SKK 100 million for the building under construction. Reding a.s. is the main contractor of the building.

SES Tlmace Ended Q1 2003 with Profit of SKK 61.3 Mln.

According to data provided to the Bratislava Stock Exchange (BCPB), power engineering company Slovenske Energeticke Strojarne (SES) Tlmace a.s. , earned a profit of SKK 61.3 million in Q1 2003. In comparison with the same period of last year this is an increase by SKK 21 million. The company reported sales of own products and services of SKK 1.142 billion and produced added value of SKK 187.6 million.