State Budget Deficit of Slovakia was SKK 27.62 Bln. at end of June

Preliminary figures show the state budget deficit of the Slovak Republic of SKK 27.62 billion in the first half of this year. This is 49.3 percent of the figure planned for the whole year. However, in parliament last week Finance Minister Ivan Miklos estimated the H1 budgetary deficit at about SKK 34 billion. Total revenues of the state budget reached SKK 100.934 billion at the end of June, which is 42.9 percent of the annual target. Expenditures stood at SKK 128.553 billion, to make up 44.1 percent of the sum projected for 2003.

Already EMU Accession Process Can Bring Advantages to Slovakia

Advantages from the introduction of the euro could appear already in the accession phase of Slovakia’s integration in the European Monetary Union (EMU). Vice-Governor of the National Bank of Slovakia (NBS) Elena Kohutikova told a discussion club of the Slovak Economy Forum on Monday that expectations in the accession phase could be a significant stimulus for the country’s economic development. “It will be a signal for investors that could result in higher direct foreign investments (DFI) influx and subsequent acceleration of restructuring of the economy,” she said. The strategy approved by the cabinet will put pressure in the implementation of the budgetary policy in accord with the Stability and Growth Pact, and press on the standardization of local economic-political steps and reforms.

Rhodia Industrial Yarns Reports SKK 2.75 Bln. Sales in 2002

The producer of industrial chemical fibers Rhodia Industrial Yarns, a.s. Humenne, in eastern Slovakia, reported sales of SKK 2.75 billion in 2002, an increase of 3 percent y/y. According to its representatives, last year was especially difficult for the company. Automotive industry, chiefly fibers for tires and airbags, is one of the most significant market segments of the firm. Development of new products for tire use significantly contributes to their growth of output as well. The firm plans to further increase output this year to exceed SKK 3 billion at the end of 2003.

Antitrust Office Approves Banka Slovakia Takeover by Meinl Bank

The Antitrust Office of the Slovak Republic has agreed to the takeover of Banka Slovakia, a.s., Banska Bystrica by the Austrian Meinl Bank Aktiengesellschaft. Its decision took effect on June 13, 2003, the Office informed SITA. Meinl Bank signed a contract to buy 60.07 percent of Banka Slovakia in early May. It has bought a majority stake in Banka Slovakia for a preliminary price of SKK 360 million.

Antitrust Office Examines Merger of Uniqa and R+V Poistovna Insurers

The Slovak Antitrust Office is examining in administrative proceedings the merger of Slovak insurance company R+V Poistovna, a.s., Bratislava with the Austrian insurer UNIQA Versicherungen AG, Vienna. The proceedings started on June 20, according to data provided by the Antitrust Office. Austrian insurer Uniqa Group Austria and the German insurance company R+V Allgemeine Versicherung AG agreed in May that the Austrian company will take over interests of the German firm in its Slovak and Polish arms.

EMO Generated 2,847 GWh of Electricity in H1 2003

Mochovce nuclear power station (EMO) generated about 2,847 GWh of electricity in the first half of this year. In June alone, the power output reached 421.7 GWh. The power plant has generated a total of 23,705 GWh of electricity during its existence, Rastislav Petrech, the head of EMO’s public relations department, informed SITA.

Social Security Provider Ended Last Year with SKK 5.5 Bln. Surplus

According to Socialna Poistovna’s financial report for 2002 drawn up by the Ministry of Finance, the social security provider ended last year with a budget surplus of SKK 5.5 billion, up SKK 1.2 billion y/y. Total revenues including its surplus carried over from previous years, reached SKK 96.86 billion, and expenditures for all three funds reached SKK 91.35 billion in 2002. In the current year result for 2002 was surplus of SKK 566 million, up SKK 400 million from 2001.

Meinl Bank Paid for Banka Slovakia by the Closing Date

Monday June 30 was the closing date in the sale of a 60.07-percent stake in Banka Slovakia to Austrian Meinl Bank. “Meinl Bank already transferred 70 percent of the purchase price, i.e. about SKK 252 million to a respective account on Friday,” said Tatjana Lesajova, spokeswoman for government privatization agency the National Property Fund (FNM). The money will remain deposited in an FNM account in the National Bank of Slovakia (NBS).

Equity, Bond and Mixed Funds Slightly Weaker Last Week

Last week, most equity, bond and mixed funds administered by members of the Asset Management Companies Association (ASS) depreciated. The deepest loss was 20-percent depreciation of the Inter-Invest fund administered by Volksbanken KAG. Net sales of open-end mutual funds, which is the difference between the value of issued and returned units, dipped to SKK 210.1 million mainly as a result of an outflow of about SKK 215 million from Prva Penzijna and J&T Asset Management funds last week, states weekly data released by ASS.

FNM Wants to Offer for Sale its Remaining VSZ Shares Next Week

Government privatization agency the National Property Fund (FNM) could offer shares of former steel maker VSZ Kosice for sale next week. After it gets approval from the Economy Ministry, the FNM should place the shares on the Bratislava Stock Exchange next Wednesday and Thursday, FNM spokeswoman Tatjana Lesajova told SITA. “We have not yet obtained the ministry’s approval,” said Ms. Lesajova. The FNM is thus reacting to an intention by the financial company Penta Group to propose the withdrawal of VSZ shares from the public market at the annual shareholders meeting in July.

HVB Bank Provided SKK 199.4 Mln. in Mortgage Loans over H1 2003

Over H1 2003 HVB Bank Slovakia a.s. provided 205 mortgages totaling SKK 199.45 million. At the end of June 2003 the bank registered 465 mortgages on a cumulative basis totaling SKK 481.05 million, Andrea Kollarova from the bank’s marketing department told SITA.

PMU Approves Sale of SPaP Shipping Company to Dunajservis

The Antitrust Office (PMU) issued a decision on June 16 approving the takeover of shipping company Slovenska Plavba a Pristavy a.s. , Bratislava (SPaP) by Dunajservis Slovensko, s.r.o. Bratislava, announced the PMU on Tuesday. In April 2002 Dunajservis bought 86.99 percent of SPaP shares from the national privatization agency National Property Fund (FNM) for SKK 351 million.

National Labor Office with SKK 8.18 Bln. Budgetary Surplus in 2002

The National Labor Office (NUP) closed last year with a budgetary surplus of SKK 8.18 billion. Excluding carryover from previous years, NUP reported a surplus of SKK 1.65 billion in the current year. Total NUP revenues reached SKK 18.75 billion, of which SKK 6.53 billion was carried over from previous years. NUP expenditures stood at SKK 10.58 billion in late 2002, reads a report on the National Labor Office in 2002 elaborated by the Finance Ministry.

Economy Ministry Prepares an Amendment to the Privatization Law

A draft amendment to the law on large-scale privatization, submitted by the Economy Ministry for interdepartmental review, will enable to complete the privatization of strategic companies still partly controlled by the government or its privatization agency the National Property Fund (FNM). The necessity to complete the large-scale privatization is also connected with the introduction of the new social security system, which requires significant funds to cover the costs of transition, reads the draft material submitted by the Economy Ministry.

Agriculture Minister Satisfied with CAP Reform

Slovak Agriculture Minister Zsolt Simon welcomes the approved reform of the Common Agricultural Policy (CAP) of the European Union. He believes that putting it into practice will enhance rural and agricultural development. Mr. Simon considers the greatest advantage in the reformed CAP the principle of not strictly purpose-bound assistance exclusively for production. Although the partial determination of the purposes of direct payments may be maintained, Mr. Simon believes the system will facilitate access to EU assistance for farmers, he said at a press conference on Tuesday.

Cabinet to Approve EIB Loan of EUR 350 Mln. for Highway Financing

The Slovak cabinet is expected to give its consent to an agreement between Slovakia and the European Investment Bank (EIB) to finance the construction of the D1 four-lane highway section from Svinia to Presov and a two-lane R1 motorway section from Rudno nad Hronom to Zarnovica. The construction will cost approximately EUR 705 million and it should be realized between 2003 and 2008. The EIB is expected to provide an EUR 350 million loan, the contribution from European Union’s ISPA program should reach EUR 160 million and state budget sources will represent EUR 195 million.

Audited Results Show Datalan a.s. Sales of SKK 937.9 Mln. in 2002

According to audited economic results for last year, information technology and communications company Datalan a.s., reported sales of SKK 937.9 million, up 65 percent from 2001. Miroslav Melichercik, director general of the company, considers this an extraordinary success. However, according to him, it is even more important that the company has succeeded to maintain a positive trend for several successive years. Sales of services amounted to SKK 101.4 million, representing 46 percent y/y increase.

Slovak Crown Continues Firming on Tuesday

On Tuesday the Slovak crown continued firming against its reference currency the euro from initial level at 41.550/41.580 SKK/EUR to 41.370/41.420 SKK/EUR. According to Ladislav Benedek, dealer of the Vseobecna Uverova Banka (VUB), in the beginning of the second half of this year the Slovak currency firmed to its strongest position over the last two weeks mainly pulled by the firming Polish zloty and Hungarian forint and the highly positive results of foreign trade in May released on Monday. The Slovak crown against the U.S. dollar was quoted at 35.900/35.940 SKK/EUR. The cross rate of the Slovak and Czech crowns closed at 1.3100/1.3120 SKK/CZK.

SAX Share Index Weakens 0.33 Percent to 156.84 Points on Tuesday

On Tuesday, the official share index SAX weakened 0.33 percent or 0.52 points to 156.84 points. Turnover at the Bratislava Stock Exchange (BCPB) increased from SKK 642.6 million on Monday to SKK 819.2 million on Tuesday with SKK 380.8 million in share trading. In direct off-market transactions about 60 percent of the share capital of Banka Slovakia was transferred to the Austrian Meinl Bank.

District Court Issued an Approval to Sell Bankrupt PPS Detva

The District Court in Banska Bystrica gave its approval to sell the bankrupt engineering company PPS Detva Holding in to the companies Sitno Holding, Kremnica and Odien/Sevis reeng, Bratislava. Chairman of PPS trade union organization Stanislav Luptak told SITA news agency that the court made its decision based on recommendation from all major creditors. Creditors agreed on sale recommendation and indicated the offer of Sitno Holing and Odien/Sevis reeng as the most favorable.

Bank Bids in NBS Repo Tender Reached Nearly SKK 50 Bln.

Bids of commercial banks in the central bank’s regular two-week sterilization repo tender reached SKK 49.162 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 6.5 percent p.a. and the minimum was 6.49 percent p.a. Banking houses on Tuesday deposited in their reserve accounts in the NBS SKK 22.652 billion, meeting the minimum reserve requirement on a cumulative basis at 106.28 percent. Overnights were quoted at 4.8/5.1 percent p.a., tom/nexts, and spot/nexts were traded at 6.1/6.3 percent p.a. One-week deposits closed at 6.2/6.4 percent p.a., with two-week deposits at 6.3/6.5 percent p.a. One-month deposits were quoted at 6.2/6.4 percent p.a.

CSA Passenger Numbers in Slovakia down by 5,600 Last Year

Although Czech Airlines CSA transported more than three million passengers last year and their number has increased by 6,5 percent y/y, in Slovakia the number of its passengers decreased by 5,6 percent to 70,700. This year the airline plans to transport approximately 75,000 passengers in Slovakia. This goal will be supported by introducing a new destination to which the airline will fly — CSA will start regular flights from Prague to Sliac in central Slovakia from July 28. This will be the third destination with regular CSA flights in Slovakia, besides Bratislava and Kosice.