Sales in industry increased 15.9 percent y/y in fixed prices to SKK 127.8 billion over March of this year. Increase of sales in manufacturing industry by 20 percent and increase by 4.5 percent in distribution of electricity, gas and water was behind the development. Sales in the mining industry decreased by 5.8 percent, the Slovak Statistics Office informed on Monday. Over the first three months of the year sales in industry increased 12.2 percent compared with the same period of the last year. Of this, the manufacturing industry posted an increase of 14.6 percent. Sales in the production and distribution of electricity, gas and water went up by 1.7 percent and the mining sector reported a decrease of 11.1 percent.

April Leaves Consumer Prices in Slovakia Unchanged

Consumer prices in Slovakia have not changed over April, following a 0.1 percent growth in March. Year-on-year headline inflation reached 8 percent in April, the Slovak Statistics Office reported on Monday. Slovakia reported a monthly core deflation of 0.1 percent in April. In March monthly core inflation, which determines the rate of consumer price growth cleared of the influence of regulated prices and other administrative measures, was 0.1 percent. Compared with April of the previous year, core inflation amounted to 2.6 percent in April 2004.

Real Wages Down in Hotels and Restaurants in April

The sector of sale and maintenance of motor vehicles reported the highest year-on-year growth in real wages of 15.1 percent in March. Real wages went up 5.6 percent in the retail business, 4.3 percent in the wholesale business, 4.2 percent in real estate, rental, trade activities and other services, 3.8 percent in the postal sector, 3.1 percent in industry and 3 percent in transport. Real wages in the building industry and telecommunication sector remained unchanged from last March. Real wages only declined in hotels and restaurants, by 0.5 percent, the Statistics Office informed SITA.

Slovenska Sporitelna Reports SKK 770 Mln. Q1 Consolidated Profit

According to international financial reporting standards (IFRS), Slovenska Sporitelna (SLSP), the largest commercial bank in Slovakia reported a consolidated net profit of SKK 770 million in three months of 2004, compared with SKK 997 million in the same period of last year. “The Q1 result was influenced by a one-off dissolution of provisions of housing construction savings bank Prva Stavebna Sporitelna, whose results were included in SLSP’s consolidated figures,” SLSP spokeswoman Eva Guttlerova informed SITA. For the same reason the bank’s operating profit decreased by 14 percent to SKK 1.1 billion. The balance-sheet total of the bank mounted by 4 percent y/y to reach SKK 211 billion in late March 2004.

Dunaj Trading Company Closed 2003 with SKK 3.7 Mln. Profit

Trading company Dunaj, Obchodne Domy, a.s., Bratislava netted SKK 3.7 million over last year. The company, however, closed the year 2002 SKK 645,000 in the red. Operating profit representing SKK 10.4 million at the end of December 2003 was reduced by a loss from financial operations amounting to SKK 4.6 million. The company plans to earn about SKK 15 million this year.

Three-Month Trade Deficit in Farm Commodities was SKK 4.5 Bln.

Slovakia’s trade balance in farm and food commodities reported a deficit of SKK 4.5 billion for January to March of this year and even exceeded the aggregate trade deficit of Slovakia amounting to SKK 324 million in Q1 2004. However, compared with the same period of 2003, trade in farm and food commodities remained at approximately the same level, announced the Economy Ministry. Slovakia’s trade balance for three months of this year was negative, with a trade deficit of SKK 324 million. Slovakia exported goods amounting to SKK 202.2 billion, up 14.7 percent y/y. In the same period Slovakia imported goods worth SKK 202.6 billion, which is 11.2 percent more than in Q1 2003.

Minister Prokopovic in Luxembourg on Highway Construction Financing

Slovak Transport Minister Pavol Prokopovic will meet with representatives of the European Investment Bank (EIB) in Luxembourg on Monday to discuss possibilities for financing the construction of several highway sections in Slovakia. The minister’s spokesman Tomas Sarluska informed SITA that in 2005-2007 Slovakia would borrow SKK 19 billion from EIB to build the Ladce-Zilina highway section. Dialnicna Spolocnost, a.s. would be an applicant and guarantor for the loan. With regards to consultations with EIB so far, Mr. Sarluska sees the basic set up of the loan contract as feasible.

Aluminum Smelter Slovalco Grosses SKK 366.4 Mln. over Q1

Ziar nad Hronom-based aluminum smelter company Slovalco a.s, closed Q1 2004 with SKK 366.4 million in profit according to Slovak accounting standards, which is 104.4 percent more than for Q1 2003. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) went up by 59.8 percent to SKK 633.2 million in the first quarter of 2003. Over the monitored period Slovalco’s sales went up by SKK 319 million to SKK 2.771 billion while the share export was 88 percent. The output volume increased by 25.5 percent to 45,240 tons. Calculated in USD, pre-tax profit increased by USD 9.2 million to USD 12.9 million. EBITDA rose USD 10.4 million to USD 20.6 million.

Economy Ministry Asks the Cabinet to Cancel its Resolution on PPC

The Economy Ministry suggests canceling the governmental resolution, based on which the economy minister was supposed to secure the joint sale of 100 percent of steam/gas energy producer Paroplynovy Cyklus a.s. Bratislava (PPC). The ministry submitted the proposal for interdepartmental review, which cancels a resolution regarding the economy minister dated January 21 on mutual cooperation in the sale of a 90-percent stake held by government privatization agency the National Property Fund (FNM) and a 10-percent stake owned by dominant power producer Slovenske Elektrarne (SE) in PPC.

April Price Development No Surprise to Slovak Central Bank

.Inflation development in April came as no surprise to the National Bank of Slovakia (NBS). “Consumer prices in April were unchanged compared with March, which was in line with the central bank’s expectations,” reads the NBS stance. However, the central bank pointed to the contradictory development of consumer prices in individual segments, when food prices were decreasing, while regulated prices, prices of marketable goods and market services reported a growth. Regulated prices grew 0.3 percent in April, while prices of items comprising core inflation decreased by 0.1 percent. Year-on-year headline inflation was 8 percent and core inflation 2.6 percent. On average for the first four months of this year, consumer prices in Slovakia went up 8.3 percent.

NBS Governor Jusko Attends BIS Meeting on Fiscal Discipline

.Marian Jusko, the governor of Slovakia‘s central bank, the National Bank of Slovakia (NBS), is attending a meeting on Monday of the Bank of International Settlements (BIS) in Basel, Switzerland. The central bank governors will evaluate the performance of the Committee for Payment and Settlement Systems. They will also discuss problems with keeping fiscal discipline and their impact on central banks. „Another topic of the meeting will be perspectives for cooperation by accountants and bank regulators,“ stated NBS spokesman.

Finance Minister Presents Fiscal Decentralization to Deputies

Finance Minister Ivan Miklos presented his concept for fiscal decentralization on Monday. The ministry has prepared three draft bills and one government regulation related to the fiscal decentralization system. According to the draft bill on regional budgets, regions and municipalities should obtain all state budget revenue from personal income tax collected. Thereof 70.9 percent should go to towns and villages and 27 percent should be allocated to regional governments. The remaining 2.1 percent will be a reserve, said Mr. Miklos. The cabinet should deal with draft bills concerning fiscal decentralization this month. Parliament should discuss them in June, finishing by October at the latest.

Printing Plant Bratislavske Tlaciarne Reports Sales of SKK 312.2 Mln.

Printing house Bratislavske Tlaciarne, a.s. reported sales of SKK 312.2 million last year, which is an increase of 63.5 percent from 2002. Production consumption amounted to almost SKK 220 million. The net profit of the company grew by SKK 3.8 million y/y to SKK 7.8 million at the end 2003 Bratislavske Tlaciarne generated added value of SKK 93.5 million, up 47.8 percent y/y. By the end of last year the company drew an investment loan of SKK 44.8 that matures in 2008.

Poultry Production in Slovakia in 2003 reached 126,100 tons

Slovakia’s average population of poultry increased 3.8 percent, and the average number of hens increased 3.6 percent over the previous year. Total poultry production reached 126,100 tons in 2003, which is 0.9 percent less than in 2002. The production of slaughter poultry was estimated at 92,300 tons, down 4.5 percent from 2002, reads a report by the Research Institute of the Economy of Agriculture and Food Production.

Proposal for Privatization of SAD Bratislava is Withdrawn

A proposal to issue a decision on the privatization of bus transport firm Slovenska Autobusova Doprava (SAD) Bratislava was withdrawn from a meeting of the council of economic ministers (PEM) on Monday. After the PEM meeting, Finance Minister Ivan Miklos said that the privatization agency, the National Property Fund (FNM) had objected against the proposed overly long installment period of the buyer, the company Bus Transport, for its acquisition of a 49-percent stake in the bus transport firm. He pointed out that the installments are planned over 600 to 700 days. He also considers it a problem that the transfer of shares becomes valid after the first installment. If there were some problems with the installments afterwards, it would not be possible to return the transfer. If the buyer does not fulfill its obligations, it creates the danger of disputes lasting several years.

FOREX MARKET: Slovak Crown Closes Monday at 40.28/31 SKK/EUR

.The Slovak crown moderately weakened on Monday. At one point during the day the exchange rate climbed to 40.40 SKK/EUR, CSOB dealer Andrej Zeman informed SITA. Local banks began selling euros in the afternoon, and the crown thus almost returned to its opening of 40.28/40.31 SKK/EUR. The US dollar has been firming since Friday to reach 1.182 USD/EUR on Monday. The Slovak crown was thus quoted at 34.05/34.09 SKK/USD. The cross rate of the Slovak and Czech crowns grew to 1.255/1.257 SKK/CZK, chiefly as a result of the Czech currency’s strengthening against the euro.

STOCK MARKET: SAX Starts the Week Weakening to 184.46 Points

At the beginning of the second week in May the Slovak SAX share index weakened. The SAX dropped by 0.25 percent or 0.46 points to 184.46 points influenced mainly by shares of oil refiner Slovnaft refiner and Nafta gas storage company. Turnover on the Bratislava Stock Exchange (BCPB) increased from SKK 362.2 million on Friday to SKK 615.66 million with SKK 137,200 in share trading.

MONEY MARKET: Ministry Accepted SKK 2.115 Billion in Bond Auction

The Finance Ministry accepted SKK 2.115 billion out of SKK 6.381 billion in bank’s bids in an auction of 15-year government bonds on Monday. Average yield in the auction reached 5.27 percent p.a., maximum yield was 5.3 percent p.a. and minimum 5.16 percent p.a., informed ING Bank dealer Martin Koska. Commercial banks deposited SKK 22.745 billion in their reserve accounts in the central bank, meeting the minimum reserve requirement on a cumulative basis at 119.33 percent on Monday.

SE Generated 8 522.4 GWh of Electricity in Four Months of 2004

In the first four months of this year, dominant Slovak power producer Slovenske Elektrarne a.s. (SE) generated 8 522.4 GWh of electricity, down 7 percent from the same period of last year, company’s spokeswoman Jana Kaplanova informed SITA news agency. In April alone electricity output went down 5 percent y/y to 1 872.8 GWh. The decline of total output of electricity in Slovakia can be ascribed to the fact that large industrial clients buy less electricity from SE as its had been contracted, and eligible entities have an option to buy electricity abroad.

Slovanet Internet Provider with EBIDTA SKK 36.7 Million in 2003

Slovanet, a.s., one of well established Internet providers in Slovakia, reached earnings before interest, tax, depreciation and amortization (EBITDA) of SKK 36.7 million in 2003. Sales of the company totaled to SKK 290 million last year, informed marketing director Roman Gregus.

PEM Recommends to Grant Significant Investment Status to Ferplast

At its meeting on Monday the Council of Economic Ministers (PEM) has recommended to the cabinet to grant a significant investment status to the project of Ferplast Slovakia, s.r.o. The investment of pet accessories manufacturer Ferplast should create 400 jobs initially, which can increase to 1,600 jobs in the village of Nesvady, informs Finance Minister Ivan Miklos. “Significant investment, which is an investment exceeding SKK 1 billion, simplifies the process of buying out of plots for placing the production plant”, explains the minister, adding that the government support to Ferplast will not include investment stimuli.

Slovak and Dutch Ministers Discussed Social and Labor Affairs

The Slovak Labor, Social Affairs and Family Minister, Ludovit Kanik, believes, that several countries out of original fifteen EU member states will review after a year their positions and cease implementing of the transition periods in employing citizens of the new member countries. The minister expressed this belief at his Monday meeting with the Dutch Social Affairs and Employment Minister, Arat Jan de Geus, the press department of the Slovak Labor, Social Affairs and Family Ministry informed. The Netherlands introduced a two year transition period with the possibility of its extension by another year. According to the Dutch Minister it was caused by the decisions of the surrounding countries as well as growing unemployment, which, according to Mr. Geus, grew from 3 to 7 percent.