Slovakia’s largest crude oil refinery Slovnaft a.s. Bratislava continues decreasing fuel prices. As of Tuesday, June 8, it has cut petrol prices in its filling stations network by SKK 0.80. Diesel price went down SKK 0.60 to SKK 32.90. One liter of the cheapest Normal 91-octane petrol now costs SKK 35.40, while Normal 91-octane UNI and Super 95-octane N are available at SKK 35.80. The price of Super Plus 98-octane N petrol lowered to SKK 38.40, Slovnaft informed on Tuesday.

Sales in Industry Up 11.1 Percent y/y to SKK 117.4 Bln. in April

Sales in industry increased 11.1 percent y/y in fixed prices to SKK 117.4 billion over April of this year. A 13.6-percent increase of sales in manufacturing industry was behind the development. Sales in the mining industry decreased by 13.7 percent and the drop accounted for 3 percent in distribution of electricity, gas and water, the Slovak Statistics Office informed on Tuesday.

Real and Nominal Wages Grew the Most in Telecommunications

In April the average nominal monthly wage continued to grow in all selected sectors. The sector of telecommunications showed the fastest growth, going up 27.9 percent from April 2003. Sector of sale and maintenance of motor vehicles posted nominal wage growth by 19.6 percent, while nominal wage grew by 11.1 percent in the wholesale business, 10.5 percent in transport, 9.7 percent in the retail business, 9.2 percent in the building industry, 8.5 percent in hotels and restaurants, 6.9 percent in the postal sector, 6.6 percent in real estate, rental, trade activities and other services and 6.4 percent in industry.

Employment Reached Highest Y/Y Growth in Retail Sector in April

The sector of retail trade posted the highest year-on-year growth of employment in April, reaching 4.8 percent. The sector of sale and maintenance of motor vehicles reported a 4.2-percent y/y growth, in building industry employment grew 2.9 percent y/y, while in the sector real estate, renting, and other public services it increased by 1.7 percent, Slovak Statistics Office reported. On the other hand, employment decreased in hotels and restaurants, down 7.3 percent y/y. The number of working people fell in the telecommunications sector (down 4 percent), transport (down 1.6 percent), in industry (1.3 percent) and in the postal sector (down 0.8 percent). Employment posted almost the same level in the sector of wholesale business sector, going down 0.1 percent.

Labor Ministry Submits Draft Bill on Voluntary Pension Savings

The Ministry of Labor Social Affairs, and Family submitted for interdepartmental review a draft bill on voluntary pension savings. The proposed bill preserves employers’ contributions for voluntary savings of their employees as a recognized tax expenditure. However, these contributions will be deemed income of employees who will continue paying income tax from them, head of the ministry’s Social Insurance Section Marek Lendacky told a news conference on Tuesday.

Spa Kupele Strbske Pleso Plans a Capital Hike by SKK 101.59 Mln.

Kupele Strbske Pleso spa plans to increase its share capital by SKK 101.589 million from the current SKK 98.411 million. Following the capital hike, the company’s share capital should reach SKK 200 million. The issue price will be SKK 1,000, reads data published by the spa.

Slovakia Provided SKK 6. 749 Bln. in State Aid Last Year

The total volume of state aid granted in the Slovak Republic reached SKK 6.749 billion last year. This sum does not include data concerning the agriculture and fisheries sectors. Last year, Volkswagen Slovakia a.s. claimed tax relief on corporate income for the 2002 taxation period at a total sum of SKK 1.919 billion, which represents 28.44 percent of aid granted. U.S. Steel Kosice claimed tax relief last year on corporate income for the taxation period of the fiscal year of 2002 at a total sum of SKK 1.761 billion, which is 26.09 percent of the state aid granted. These are figures from a report on state aid granted in the Slovak Republic for the year 2003, prepared by the Finance Ministry.

ZSR Asks for a Deferral of its SKK 650 Mln. Loan Installment

The cabinet should decide on a delay in this year’s SKK 650 million installment from railway network operator ZSR. This is part of funds from state financial assets used by ZSR for its transformation and restructuring. ZSR was supposed to repay the money by June 15 and the new proposed repayment deadline is an extension until the end of this year. The reason for the requested deferral of installments is the unfavorable financial situation and persisting inability by ZSR to settle its debts.

Dairies Complain of High VAT Rate Burden on their Products

After first five months of this year, milk processing companies see as the biggest problem the increased, 19-percent VAT tax rate. Chairman of the Association of Slovak Dairies (SMZ) Jan Blchac said that the Slovak VAT rate puts domestic producers at a disadvantage compared with neighboring countries. If a liter of milk costs, for example SKK 20 per liter, a Slovak customer will pay VAT for milk by about SKK 2.5 higher than in the Czech Republic.

Transport Minister and Polish Ambassador Discuss Common Projects

Slovak Minister of Transport, Postal Services, and Telecommunications Pavol Prokopovic met on Tuesday with Polish Ambassador to Slovakia Zenon Kosiniak-Kamysz to discuss cooperation between both countries in the area of road infrastructure. They both agreed that the construction of the multi-modal transport corridor number 4 connecting Bratislava with the Polish town of Katowice, is in the interest of both countries, ministry spokesman Tomas Sarluska informed SITA.

Eastern Sugar Slovensko to Pay a Dividend of SKK 160 Per Share

Dunajska Streda-based sugar mill Eastern Sugar Slovensko, a.s., will pay its shareholders a dividend of SKK 160 per share. Thus it will pay SKK 124.1 million in dividends in total when the company’s share assets consist of 775,896 shares at a nominal value of SKK 1,000. The company’s shareholders decided to pay dividends last week.

Petition Committees want to Negotiate Land Price for Kia Motors Plant

Petition committee representatives are requesting that competent officials negotiate the market price of land with owners on whose property the car-manufacturing plant of Kia-Hyundai should be build. A representative of the petition committees, Dusan Mikulik, said on Tuesday at a press conference that the land owners are asking that competent officials should not consider them as an obstacle to the planned construction, but rather as equal partners. He branded as a lie the words of Economy Minister Pavol Rusko that owners are asking SKK 700 per square meter of their land. According to Mr. Mikulik, the requested price in Teplicka nad Vahom is SKK 350 and in Nedzedz, Gbelany and Mojs: SKK 302. The petition committees also intend to insist on this price at the meeting with Economy Minister Pavol Rusko later on Tuesday.

Slovak Banks Generated SKK 4.49 Bln. Profit by the End of in April

Data released by the central bank, the National Bank of Slovakia (NBS) on Tuesday show that the Slovak banking sector generated an aggregate profit of SKK 4.49 billion by the end of April. None of the Slovak banking houses made a loss in the January-April period. The aggregate balance-sheet total of commercial banks represented SKK 1,035.58 billion at that time.

Ozeta Neo is Selling Production Premises of its Unit in Hlohovec

Clothing maker Ozeta Neo, a.s., Trencin, wants to sell its production premises in Hlohovec. Anyone interested in the acquisition of the premises can submit indicative bids by July 2. The 22,355 square meter production premises consist of administrative buildings, a production hall, a warehouse and other smaller buildings. The total usable area of buildings is 9,793 square meters.

INVESTING: Most Mutual Funds Posted Losses in First June Week

Most open-end mutual funds administered by members of the Asset Management Companies Association (ASS) closed the first week of June with moderate losses. Gains were only reported among money market funds. Net sales of mutual funds, representing the difference between bought and returned units, reached SKK 568.4 million last week, according to information released by ASS.

Slovak Dairies Remain in the Red also in Q1 2004

Milk-processing companies in Slovakia continue, similarly as in the previous two years, in loss-making operation. Chairman of the Association of Slovak Dairies (SMZ) Jan Blchac said at a press conference on Tuesday that the dairies closed the first quarter of 2004 with an aggregate loss exceeding SKK 90 million. They reported total losses of SKK 686 million in 2003 and SKK 124 million in 2002. Mr. Blchac ascribed the current development to the negative situation on the Slovak milk products market. Nevertheless, cow milk processors managed to increase generated added value compared with the previous year’s period by over 34 percent to SKK 326 million.

NCHZ Exports SKK 1.514 Bln. Worth of Goods in Five Months

Novacke Chemicke Zavody (NCHZ), a.s. Novaky, one of major chemical producers in Slovakia, exported goods worth SKK 1.514 billion over the first five months of 2004, which is 2 percent above the previous year’s level. Exports made up 81 percent of total sales over the monitored period. ”Firming by the Slovak crown towards the euro and the US dollar decreased the company’s monthly income by about SKK 11 million on the same volume and price,” said NCHZ director general Lubos Beno. Germany was the main export destination with a 26 percent share followed by the Czech Republic (18 percent), Austria and Italy (10 percent each) and Poland (9 percent). ”This year NCHZ faces the European market glutted with main commodities and a hard competition between individual companies,” said Mr. Beno. He views expansion to new markets in Asia, Africa, Latin America or Australia as a way out.

Slovnaft and Nafta Shares Draw Down SAX from Seven Year High

Shares of oil refinery Slovnaft and gas storage company Nafta drew down the official SAX share index from its more than seven year high to the level of 196 points on Tuesday. The value of the index dropped by 0.36 percent or 0.7 points. Turnover on the Bratislava Stock Exchange (BCPB) grew from SKK 1.576 billion on Monday to SKK 5.521 billion on Tuesday. In direct off-market transactions 89.5 percent of shares of Hotel Kyjev in Bratislava changed owners, when 93,099 shares of the company were traded at SKK 3,038.23.

FOREX MARKET: SKK Firmed again after Central Bank’s Repo Tender

Results of the Tuesday’s sterilization repo tender of the National Bank of Slovakia (NBS) influenced the Slovak currency on Tuesday. ”The market waited whether the central bank would again let the liquidity surplus to increase on the market by turning down some bids of commercial banks,” said VUB dealer Ladislav Benedek. Excess liquidity would mean low interest rates what would reduce demand for the local currency on the Slovak foreign exchange market. But the central bank accepted as much as SKK 75 billion out of the total banks’ bid exceeding SKK 97 billion. “Thus the crown again neared its historically strongest level when it firmed to 39.870 SKK/EUR,” said the dealer. At the end of the trading session the exchange rate was at 39.870/910 SKK/EUR. The Slovak crown was quoted at 32.510/32.540 SKK/USD. The cross rate of the Slovak and Czech crowns was 1.2750/1.2770 SKK/CZK on Tuesday.

Matador Group Reports Consolidated Sales of SKK 9.927 Bln. in 2003

According to international financial reporting standards, Matador group’s consolidated sales increased by 8.5 percent last year to SKK 9.927 billion at the end of December. Sales of tires, conveyor belts and other rubber products amounted to SKK 8.893 billion. Group’s net profit surged almost 20 percent y/y to SKK 283 million in 2003. Profit per share reached SKK 127 last year, informed the company.

Central Bank Accepts SKK 75 Bln. in Tuesday’s Repo Tender

In its regular sterilization repo tender on Tuesday, the National Bank of Slovakia (NBS) accepted SKK 75 billion of the entire bank bids totaling SKK 97.322 billion. The average yield reached 4.49 percent p.a., maximum yield was 4.7 percent p.a. and minimum 4.18 percent p.a. Tatra Banka dealer Jozef Bozek told SITA that the central bank’s repo tender left the banking sector in an SKK 6 million surplus. Commercial banks deposited SKK 19.402 billion in their reserve accounts in the central bank, meeting the minimum reserve requirement on a cumulative basis at 141.18 percent.

EcoMin and Petition Committees Agree on Land Price for Kia Car Maker

Owners of land plots near Zilina, on which Korean car maker Kia Motors wants to build a car assembly plant, will likely get SKK 146 per square meters for their plots at the most. Representatives of petition committees, acting on behalf of the owners requiring higher prices than those offered by the state, agreed on this during a meeting with Economy Minister Pavol Rusko on Tuesday. Mr. Rusko told the press that the municipal offices of involved villages, Teplicka nad Vahom, Nededz, Gbelany and Mojs, will receive, as they have agreed, three expert assessments within 48 hours. “From these assessments the highest price for every plot will be selected and then offered to the owner,” said the economy minister. According to him, the committee has fought for the land owners the highest possible prices. Petition committees representative Dusan Mikulik said after the negotiations with Mr. Rusko that the petition signatories do not insist on the prices between SKK 300 and 350 per square meter after the negotiations.