Archive of articles - April 1997, page 2

Central bank sees high interbank rates until trade balance improves

The National Bank of Slovakia (NBS) on April 8 said it expected local interbank money market rates to remain high until the country's trade balance shows more favorable development. The NBS said in a statement that it was focusing on reversing the negative trend of the foreign trade balance which was a result of domestic credit expansion in 1995 and 1996."In general, rates will remain high until more positive results come from the (trade) sector, which could then bring lower prices for both primary and secondary sources," the NBS said in a statement. Interbank market rates have retreated somewhat from record levels of above 30 percent for short-term funds at the end of March.

A rare bastion of good service

A wine cellar, or the Slovak word vináreň, is a novel concept for many expats. It's fun to go down a long stairway into a dark basement room, lit with candles furnished with wooden tables, and replete with wine.Pod Baštou has all this ambience plus some of the best Slovak food in Bratislava, and another real treat - great service. After every one of our dining experiences, we left more than satisfied and always look forward to returning again and again.The menu includes many dishes found in every Slovak restaurant, but it added some delightful variations. For starters a shrimp cocktail (SHRIMP!) is offered.

Thin trading reflects lack of interest by foreign investors

The Slovak capital markets experienced thin trading, decreasing prices and volumes during the last two weeks. VSŽ remained the most traded share at prices fluctuating around Sk745. Slovnaft eased 2% to Sk980, VÚB Kupón to Sk615 and Slovakofarma slumped to Sk4,200. Other blue chips almost ceased trading completely. The situation reflects a lack of interest by foreign investors who have reduced their exposure to Slovak equities. We expect that the bearish mood on the markets will continue in the coming weeks, since we do not see any impetus which would increase investor interest in Slovak securities. Prices and trading volumes will continue their downward trend.

What will be the International Court of Justice's decision on Gabčíkovo-Nagymaros and why?

On April 15, 1997, the International Court of Justice in the Hague closed oral proceedings in the case concerning the Gabčíkovo-Nagymaros Project (Hungary/Slovakia). The case was submitted to the Court jointly by both parties on July 2, 1993 when they notified the Court of the conclusion of the so called "Special Agreement."This "Special Agreement" established the Court's jurisdiction and defined the questions submitted on the basis of the 1977 Treaty on the Construction and Operation of the Gabčíkovo-Nagymaros Barrage System, rules and principles of general international law, as well as other such treaties as the Court may find applicable.On April 1-2, judges from The Hague visited Gabčíkovo in the Court's first ever on-site visit to a disputed area in its history. The judges' decision is expected at the end of October.

Foreign ministry official says Slovakia's absence from alliance's first wave could destabilize region

As Slovakia vies to join the North Atlantic Treaty Organization (NATO) with its threeVisegrád brethren, one of its top foreign ministry officials said on April 13 that regional tensions could rise unless all four joined the alliance at the same time.NATO is expected to invite some former Soviet-bloc countries to start membership negotiations at its Madrid summit in July, and diplomats say Poland, Hungary and the Czech Republic are the front-runners."We asked NATO whether not inviting these four states at the same time will not be a destabilizing factor in the region," Deputy Foreign Minister Jozef Šesták said on a discussion program broadcast by Slovak Television. "This question has sparked a certain controversy, but our answer is definitely yes, it can bring tension to the region and destabilize it."

Red tape holds up new drugs on Slovak market

Research-based pharmaceutical companies and officials in the Slovak health care system are blaming each other for delays in getting new drugs on the Slovak market.At issue is the registration and "categorization" of new drugs for sale or reimbursement to Slovak physicians and hospitals, a procedure which research-based pharmaceutical companies say simply takes too long, while officials at the Slovak Ministry of Health and the State Institute for Drug Control (Štatny Ústav Kontroly Liečiv - SUKL), the government's adjunct in the health-care sector, says the process is a model of efficiency when compared to other systems in Europe.Patrick Machan, the Slovak branch manager of the international pharmaceutical laboratory Pfizer says his company is still trying to market drugs which had already passed all clinical

Slovakia needs to step it up at the World Championship

The Slovak national hockey team hopes to step up its level of play at this year's World Championships in Helsinki, Finland, April 26 to May 10. It is clear after only three years of independence and a long, hard fought road from the bottom of hockey that the Slovaks belong with the world's elite.But there is another step: to break into the rock-solid top six of hockey countries: Russia, Finland, Sweden, Canada, USA, and the Czech Republic. The national team feels the weight of an entire country wrapped up in their fate. But arriving at the chance to play with those top countries has taken a lot of pressure off.

Medical equipment giant adapts to changing times

Chirana Prema, a.s., a holding company specializing in precision technology, is one firm that has adapted to changing times and markets.Located in the west Slovak town of Stará Turá, Chirana Prema is a major supplier of medical equipment and measuring devices in Slovakia and on neighboring markets.It wasn't always that way. The firm started off as a small subsidiary for gas meter production founded by a Czech industrialist in 1935. During World War II, the company was producing ammunition, but that venture ended when the plant was partly destroyed by the retreating Germans. Afterwards, production concentrated on production of precision technology, and Chirana Prema has since evolved into providing medical equipment and measuring devices.

The Spotlight

Editors' Notes

Industrial output grew by 2.2% in February

German bank puts Sk bonds

Around Slovakia

Jewish graves desecratedGroup wants to save virgin forestIntrepid money forgers arrested

Community Grapevine

State budget at 3.45bn Sk in the red for 1997

Following the trail of the Čergov wolves

I must confess that my knowledge of wolves was limited before last year. They hunt in packs, pull lost Russians from their troikas and are a menace to Little Pigs and small girls' grandmothers. This was the extent of what I knew.When I returned to Scotland after the summer to prepare for another year in Slovakia, I began researching the literature on wolves. I was surprised to find descriptions of a family-centered, social animal which is very shy of people. It seemed that, rather than be attacked as soon as I was alone in the forest at night, I was going to have to put a lot of effort into finding wolves and would be very lucky if I saw them at all.

Capital market has new plan

At last, Slovakia's capital market seems ready to recharge its faltering batteries and take off after repeated short circuits over the past three years.After Finance Ministry State-Secretary Jozef Magula pulled the plug and moved to the central bank's board of directors on January 28, his successor, Peter Staněk, former economic advisor to Premier Vladimír Mečiar, has come up with a blueprint that he says will hotwire the country's public markets without burning the fuse.In an exclusive interview for The Slovak Spectator, Staněk said his Capital Market Concept, as the plan is called, will attract particularly foreign investors and consequently increase the importance of the stock market in the Slovak economy where banks presently are playing too large a role.

VSŽ places bid for Hungarian steel mill

Largest private hospital opens in Púchov