Archive of articles - April 1997, page 4

Slovak Agrobanka branch privatized by the "Trnava group" headed by Slovakofarma, Biotika

Agrobanka, the insolvent Czechoslovak bank whose Slovak branch announced last fall that it would tender its assets separately from those of its Czech parent, has been purchased by a group of Slovak companies led by the pharmaceutical firm Slovakofarma. The Slovak National Bank's (NBS) Banking Supervisory Board Chairman, Tibor Kašiak, on April 4 told The Slovak Spectator that the NBS had made no decision about the Slovak branch-bank's buyers.On April 2 the Czech daily Mladá Fronta Dnes reported that Agrobanka's Slovak subsidiary in Banská Bystrica was sold to an alliance of investors comprising the two pharmaceutical firms Slovakofarma in Hlohovec and Biotika in Slovenská Ľupča, the insulation manufacturer Izomat, in Nová Baňa, and Nafta, the gas storage company in Gbely. The report, which referred to Agrobanka's four new owners as "the Trnava group," said the companies have "close ties" to the ruling Slovak coalition party, HZDS.

Pharmaceutical firm profits from joint-venture with leading German drug producer

In the 50 or so years that pharmaceutical production has existed in Slovakia, several domestic companies' brands have become household names. One of these firms, Biotika a.s. Slovenská Ľupča, in 1992 joined with the German pharmaceutical leader Hoechst in a successful partnership in an industry that analysts see as profitable on the whole and a good investment bet.Hoechst-Biotika spol. sro is a licensed producer of a variety of mostly specialized pharmaceuticals and some over-the-counter drugs, including injection solutions of vitamins, calcium and magnesium, blood vessel medicine, antibiotics, antimycotics (drugs that combat the growth of parasite fungi in the body) and cardiovascular products. Fifty percent of Hoechst-Biotika's production is placed on the Slovak market, 45 percent in the Czech Republic and the remaining 5 percent in neighboring countries.

Strike withers as actors decide to return back to stage

After spending almost four weeks on strike against culture minister Ivan Hudec, all but one Slovak theater restarted performances on March 26, failing once again to make the minister listen. Taking a page out of an old Homer manuscript, Hudec plugged his ears to resist the Thalian sirens' luring voices, bringing the odyssey to a non-heroic end.Strike committee representatives for the thirteen theaters that had joined together to protest the ministry's placing of state-sponsored cultural entities under regional supervision said that President Michal Kováč's March 21 appeal to end the strike played a major part in their decision. In a written appeal, Kováč stated: "Theater is a living art that can only exist when in real contact with the audience. Therefore, for the audience's sake, I appeal to all theater actors to reestablish their performances.

The Scots are coming

Celtic Days are coming to Bratislava in May/June. Kicking off this cultural event, organized by the British Council, on May 24 will be a concert by the Scottish Chamber Orchestra's Wind Ensemble directed by the internationally acclaimed Scottish oboist Douglas Boyd at the Reduta. It promises to be a full night as the music reporoire will include: the first performance of a wind quintet written by a well-known young Scottish compser James MacMillan, Mozart Gran Partita (Serenade for 13 wind instruments, and a Strauss Symphony for Wind Instruments.

National Bank governor says Slovakia, Japan close to third loan

The National Bank of Slovakia (NBS) and the Export-Import Bank of Japan are close to signing a loan of around 20 billion yen (53.6 billion Sk) to support small and medium-sized Slovak companies, the daily Národná Obroda reported on March 27. "We are in the final stage of negotiations over the third loan from [Japan's] Exim bank and are talking about 20 billion yen," the paper quoted NBS governor Vladimír Masar as saying during a visit of leading Slovak government officials - includung Prime Minister Vladimír Mečiar - to Japan on March 24-27. Masar said the maturity of the credit should be "around 12 years," but declined to disclose any information about the loan's rate, saying only that it should be "relatively favourable." The NBS signed a 10 billion yen credit facility with the Japanese Exim Bank in April 1996. That loan held an interest rate of the Slovak discount rate - which currently stands at 8.8 percent - plus 3.25 percent and was also used to support small and medium-sized entreprises.

Slovak FinMin sets bond, T-bill auctions for 2Q 97

EC's Brittan warns Slovak government not to conclude free trade accord with Russia

While Slovakia continues to seek expanded trade relations with Russia, European Commission vice president Sir Leon Brittan, warned that the European Union (EU) will not accept a Slovak-Russian free trade agreement, but said his meetings with Slovak officials put his mind more at ease that no such accord is imminent. In a speech to Slovak parliamentarians and business leaders at a March 21 reception in Bratislava, Brittan said that Prime Minister Vladimír Mečiar assured him that Slovakia will not negotiate a formal free-trade agreement (FTA) with Russia in the near future. "I believe the risk of complications arising from negotiations between the Slovak Republic and Russia has been eliminated," Brittan said in a question-answer session following his speech. "There is now complete understanding on all sides."

Slovenská Poisťovňa likely to be privatized to domestic subjects

The privatization of Slovakia's largest insurance company, Slovenská Poisťovňa (SP), should proceed as soon as possible, the Slovak press agency TASR quoted SP President Edita Bukovská as saying on April 2. "The complete privatisation [of SP] should take place as soon as possible - within one and a half years, but urgently by the end of 1998," Bukovska said. In early March, parliament approved a law cancelling the selloff of the state's stakes in Slovenská Sporiteľňa, the country's largest savings bank, and SP until December 31, 2003. Through the state privatisation agency the National Property Fund, the state controls 50.5 percent of SP.But Bukovská said SP is already suffering from the lack of a "real owner" able to put funds into the firm over the next four or five years. "From a pragmatic point of view, domestic subjects, including perhaps two or three new shareholders, probably will be involved and preferred in [SP's] next privatization moves," Bukovská said.

Nafta posts 1996 results

Anti-monopoly office checks VSŽ, IRB tie

The Slovak Antimonopoly Bureau on April 2 said it had started administrative actions against steel producer VSŽ for allegedly covering up the extent of its control of the Slovak commercial bank Investičná a Rozvojová Banka (IRB). "The Antimopoly Bureau on March 31 started action against VSŽ based on allegations that it did not report its concentration [of ownership in IRB]," said Imrich Zwieb, the bureau's official leading the investigation."(The inspection's) aim will be to disclose whether VSŽ and stockbroker ARDS did not act in concert, and if this was the case, why it did not meet the legal requirement to report such concentration of ownership to the bureau," he added. VSŽ officially holds 14.7 percent of the bank, but took control of one-third of the seats on IRB's supervisory board after it worked in an alliance with many of the bank's other shareholders to force management changes.

Chutes and Ladders debuts

Anthony Böhm has been appointed international president for central and eastern Europe for Global Travel Network, an international travel franchise system that just opened up a bureau in Slovakia to augment its over 400 offices around the world. Böhm, an American, graduated from the University of Cincinnati in 1970, where he majored in international studies. In 1989, Böhm journeyed to the Czech part of what was then-Czechoslovakia to see the land of his grandparents, and fell in love with the country. In 1990, Böhm started his own company called "American Dream Shops," which merchandises American sports clothing to young Czechs.He successfully sold his business to a large Czech company. Böhm sees his niche with Global Travel Network because customers will find a full-service agency that can issue flight tickets on the spot. Böhm said that he plans on opening 5 - 6 franchises in Slovakia and 8 in the Czech Republic.

Community Grapevine

The Hague judges see Gabčíkovo

As the hearings on the Gabčíkovo-Nagymoros dam dispute between Slovakia and Hungary took a break after an opening round of oral arguments, the judges presiding over the dispute from the International Court of Justice in The Hague paid their first visit ever to the area. Though the judges refused to divulge their impressions of the sprawling hydroelectric dam and power station, officials from both countries pronounced the visit a success to their case that will be decided on this fall.On April 1-2, the international justices visited the Slovak part of the abortive joint venture, whose Slovak component was finished in 1992. In addition to the hydropower station at the Slovak village of Gabčíkovo and the "Variant C" canal, which diverts the Danube River through Slovak territory, the court inspected a water-treatment plant in Petržalka and a drinking-water reservoir at Rušovce.

Bratislava's best business lunch spots

Bratislava's selection of viable workday lunch options is growing. Below are the cream of the crop. The criteria here? All-around quality, central location, fast service, and reasonable prices - in that order. Please feel free to let us know if you agree.

IBM advances via Internet to allow firms to share applications from one source

Dramatic is the best way to describe how fast technology is moving in the 1990s, mainly because of the swift advances through the Internet. Presiding over his company's fort in the computer giant IBM's technological empire, general director Espen Ramsbacher sits like a professor giddy over the possibility of new theories evolving into new gadgets. "The Internet is the future," he said. "It's where computer companies will compete. IBM is working to make the Internet easier to do business on."Indeed it is. "Big Blue" is working 24 hours a day to develop the new Java software which will allow large networks of computers to work on the Internet interchangeably in a computer language so advanced that it can handle any software applications or work on any hardware. In short, Java will simplify computer language to such a point that it will enable companies to buy software without all the other accessories.

Former minister of the economy appointed chief of state gas company

Ján Ducký, the former minister of the economy who sits in parliament as a member of Prime Minister Vladimír Mečiar's political party, confirmed on April 1 that he was appointed head of Slovenský Plynárenský Priemysel (SPP), a monopoly state-run gas company. Wasting no time in his new position, Ducký announced three days later that SPP was strengthening ties with the Russian gas company Gazprom on gas transit that could lead to even wider cooperation.SPP belongs to the most glittering family jewels of Slovakia's economy, with its 1996 after-tax profit expected to be 8.862 billion Sk, on revenues totalling around 48 billion Sk. In 1995, the company recorded 13.322 billion Sk ($404 million) in pretax profits. For several months, the Slovak and Russian governments have been discussing the creation of a joint venture for gas transit between SPP and Gazprom, the Russian monopoly state-run gas company, a venture that Ducký seems to favor.

Around Slovakia

Glass pyramid to save space powerMan sets body on fire after lewd actGhosts and ghouls gather for festival

Matador Omskšina not doing as well as expected

Spiš captures the spirit of a golden age in old Slovakia

The bus huffs its way up one of the hundreds of hills that, like ripples of water; define the rolling landscape of the Spiš region. Outside the left window, a hanglider takes off from the crown of a hill colored deep brown by potato patches and swoops down ino the wide bowl of a valley that holds a string of villages unspoiled by time. Beyond the bus's back window, the High Tatras tower like grand- parents presiding over their brood of hills. Through the windshield and across the valley lies the gate to Slovak Paradise (Slovenský raj) and the dense, dark beauty sheltered by its canopy of trees.Every mile carries with it the crest of another hill and the enchanting panorama of another piece of the Spiš region. In this simple land, Slovakia's bosom, sweet treasures abound. Jewels like Spišská Kapitula, a walled-in church and seminary that still houses God's students to this day, and the 13th century wooden church at Žehra, whose humble onion dome contrasts sharply with the Gothic churches in the towns around it.