Archive of articles - July 1997, page 2

Agricultural machinery averages 10.9 year life-span

Less Slovaks depend on social benefits

Things to do

FNM offers rubbish for bonds

At last, the National Property Fund (FNM) rewarded all its bondholders who stubbornly want to privatize. On July 7, it offered the 3.5 million Slovak citizens shares of 23 companies from its portfolio, several of which face bankruptcy; some are already in liquidation.The most valuable company in the offer is Inprog a.s., Poprad, whose share is worth 250 Sk. This company with eight employees designs train cars and steel containers. Last year, Inprog made 327 million Sk ($10.9 million) pretax profit. According to its director, Jaroslav Cicák, its property consists of a fax, a copy machine and furniture from 1981.Another company in the offer, Kovozávod Lipany, employs two accountants and a couple of doormen. For two years, Kovozávod's heating has been turned off. The company is in liquidation.

Company Profile: H. Neumann International

Helmut Neumann International anchored its business in Slovakia in 1992 to help stabilize the country's shaken base of business executives, when the socialist-style manager was crumbling away and a new one hadn't been molded yet.Founded in 1971, the firm currently ranks atop all recruitment agencies in terms of executive placements in central and eastern Europe, while ranking second in Europe and sixth in the world, according to Marta Kubinská, H. Neumann partner in Bratislava.Although the Slovak branch initially provided services mostly to the Neumann Group's international clients, Kubinská explained that since 1993 the annual increase in the number of clients has been between 60 and 70 percent. Today, the company serves around 70 regular clients.

VSŽ board strengthened

See it to believe it; saintly Žofia Bosniak

Teplička nad Váhom is a normal village at first glance close to Žilina on the route toward the picturesque Vrátna dolina (valley) in the Mala Fatra mountains. There is nothing particularly special in this clean and neat village celebrating its 730th anniversary. But still there is something though, luring, especially a small church standing dusty on the road.Inside the Loretan Chapel on a pedestal lies a glass covered coffin. Approaching the coffin there is that special feeling somewhere in the throat as solemnly, people come closer to look at the body of the late Žofia Bosniak. She died in 1644 and her body though not embalmed lies perfectly silent, still well-preserved.Žofia Bosniak descended from an aristocratic family. Her ancestors came to Hungary in the 16th century from Bosnia. The Bosniak family settled in Bratislava owners of sizeable land and a manor house. Later they obtained property in Šurany too, where Žofia Bosniak was born June 2, 1609.

Slovakia falls off the map

Scanning the photos, poring over the text, there was not one place where Slovakia was mentioned in the international press coverage of the historic NATO summit which invited former East bloc countries the Czech Republic, Hungary and Poland to join the military alliance. Slovakia was also missing from NATO's words of encouragement for Slovenia and Romania which practically promises membership in a second round in 1999. Ukraine was even highlighted at the summit.This event along with the July 15 EU announcement that listed the Czech Republic, Hungary, Poland, Slovenia, Estonia and Cyprus as candidates for negotiations into EU integration, means that Slovakia has fallen off the European map.Slovakia has had the disadvantage of not having any country take it under its wing while it builds a democracy and new state from scratch. Slovakia is not important to NATO and EU countries because its current borders do not touch a NATO state, foreign investment has not entered the country, and the market is very small.

US Ambassador presents US position on NATO ommission of Slovakia

US Ambassador Ralph Johnson deliverd a speech in Slovak on July 14 in Bratislava titled, "Strengthening US-Slovak Relations." Here is an abbreviated version of his speech:I have two important goals in these remarks: first, with NATO's Madrid summit behind us, I would like to discuss why the United States could not support Slovakia's NATO membership at this time. I believe it is important that we share with the people of Slovakia the reasons behind our decision. Second, I wish to make clear that we want to see Slovakia take its place among Western democracies and that we will continue to work hard to help Slovakia achieve this important objective.

Harmanecké Papierne ownership changes overshadow thin trading

The Bratislava Stock Exchange floor market retained its somnolent mood during the past two weeks, with only moderate changes in share prices. Trading volumes were thin and market statistics were inflated by the National Property Fund's (FNM) privatization transfers and OTC trades. VSŽ was the most liquid share and increasing demand pushed its price up to 649 Sk. Slovnaft firmed to 860 Sk and Slovakofarma to 3,980 Sk, however, both on low volumes. 51 percent of chemical producer NCHZ in Nováky was transferred, after a long dispute ending with a court ruling, by the FNM to Prague-based company Inekon. The purchase price was 1,496 Sk per share. The other 49 percent was transferred to a Slovak company PT Nova at a price of 240 Sk per share. VÚB dominated the OTC market, where several large stakes (up to 9.5% of shareholders' equity) in the commercial bank were transferred at price between 1,711 Sk and 1,901 Sk. These transfers are likely to be used to strengthen the VÚB present management's position before the FNM will offer its 50.8 percent stake for sale.

The Spotlight

Central bank weighs whether to depreciate the crown

Tailing strong downward pressure on the Czech crown, the Slovak currency experienced a similar attack in mid-May. The National Bank of Slovakia (NBS) managed to defend the crown (SKK) against foreign speculators. The question remains whether it can defend it against the bullish trade deficit. After all, it was this indicator that invited foreign speculators to gamble with the crown in the first place. NBS officials admit that if the deficit doesn't improve soon, the central bank will have to let the crown slide within its fluctuation band and perhaps even let it flow like its Czech counterpart.In May, the NBS sustained the most massive attack on the currency in its short history. Foreigners borrowed the crown for BRIBOR (Bratislava Interbank Offered Rate), changed it into hard currencies and waited for the crown's depreciation to change it back. A wave of trading left domestic banks without crowns, which they expected to get from the NBS. The central bank refused to sponsor such an attack on its currency and temporarily abolished REPO refinancing.

Town honors one man who made a difference

Slovaks honored their own Oscar Schindler, although he was Swedish and in the tumultuous days of World War II he officially lived in Hungary.A plaque in honor of Raoul Wallenberg, a Swedish diplomat who is said to have saved the lives of hundreds of Jews during World War II, was unveiled in the southern Slovak town of Nové Zámky on July 6.The city has gone back and forth like a ping-pong ball between Slovakia and Hungary in this century, and during WWII it was on the Hungarian side of the border. The first deportations of Hungarian Jews to concentration camps started out from Nové Zámky on July 6, 1944. Had Wallenberg not been providing Swedish passports from Budapest in anticipation of this event, which started more than two years after Slovakia's deportations, the numbers would have been far greater, this community says.

Software that helps Slovak firms do business abroad

There are few boundaries Bill Gates's Microsoft empire has not conquered. It appears only natural that other companies with the dream of penetrating borders want to ride the wave with Microsoft.In June, Scala, a software system for business management, obtained the right to plant Microsoft's BackOffice logo on its products. "It's only a logo," said Jim Gladstone, marketing manager for Scala in Bratislava. "But its name and reputation go a long way. For our purposes, it's nice packaging."Founded in 1978 in Sweden, Scala itself has come a long way in finding new borders to crack. Since opening their Budapest regional center in 1991, the firm has steadily swept across the emerging markets of central and eastern Europe, with offices springing up as far away as Uzbekistan.

Slovakia left off NATO, EU lists

July 7-11 was a difficult week for Slovakia. Not only was the country denied access into NATO's living room but was even bounced out of the waiting room after the Madrid summit didn't cite it among possible 1999 expansion candidates. The same week, the European Union (EU) indicated it would slam its door shut to Slovakia as well, saying that the EU is not compensation for NATO losers.Slovak President Michal Kováč rushed to stick his foot in the door before it fully closed. Blaming the three-party ruling coalition for the failure, Kováč, a political foe of Prime Minister Vladimír Mečiar, urged both NATO and the EU not to turn their backs on his country and saying membership of both remains Slovakia's aim."I hope that the member countries of the EU and NATO will not turn their backs on Slovakia and that they will even more intensively support the democratic forces in Slovakia which wish for Slovakia's integration," Kováč said in an interview at the Central and Eastern European Economic Summit in Salzburg, Austria.

Novartis to profit from pharmaceutical merger

With a carefully calculated merger, healthy financial indicators and the support of a local manufacturer, the newly-formed pharmaceutical company, Novartis Pharma Services is seeking to become the king of Slovakia's competitive market.Created by the merger of Sandoz and CIBA, Novartis is involved in pharmaceutical products, health care and contact lenses; agribusiness, which includes crop protection, animal health and seeds; and nutrition.At the June 24 press conference officially introducing Novartis, Henning Remmer, the company's general manager, said, "In the Slovak Republic, CIBA and Sandoz have been active for many years. We are aiming at creating a new company based on the best philosophies and best practices from the two former companies."

Huma 90 gets rights to build castle lane

The long-delayed project of developing an attractive approach road to the hilltop Bratislava castle got a boost last month, when a private developer acquired the majority stake in the company that has the property rights for Zámocká ulica (Castle street).The Bratislava-based company, Huma 90 s.r.o., paid 105 million Sk ($3.1 million) to buy 90 percent of the city's shares in the joint stock company Zámocká a.s., obtaining the right to revive the picturesque path to the castle.Huma 90 is now responsible for developing the street and selling potential buyers on their vision for the "Parliamentary Zone," encompassing 45,000 m2 divided into 52 parcels. Jaroslav Kachlík, the president of Huma 90, an architect and a member of Bratislava's City Council, has grandiose plans for those parcels. He said shops, embassies, banks and luxury apartments are envisioned.

For lovers of the great outdoors

For lovers of the great outdoors, Slovakia's High and Low Tatras mountains offer a wide spectrum of exciting, visually astounding natural terrain and sporting opportunities, with an ever-expanding network of guide services and agencies throughout the region.Adventurous souls can paraglide from lofty ridges over mountain valleys steeped in each shade of green found north of the equator or delve through mountain caverns shining with phosphorescent minerals, slaked with subterranean streams and studded with bizarrely shaped, iridescent flutes of stone. . .Scale sheer windblown cliffs inhabited only by tenacious lichens, fleet-hoofed chamois and metallic-blue beetles. . . Board a punt with a green-hatted Horal boatman and drift down rickling rivers under soaring limestone cliffs. . . Gallop on horseback through primeval valleys between sleepy villages, or leap like a demented Bedlamite off alpine bungee-jumps. . .

Bratislava metro plan stalled

Bratislava tried to build its metro twice before 1990 with heavy Soviet technology, but never found the money to make the project a reality. With a recently completed study and light French technology, City officials now believe it can be done. But a quarrel with state officials keeps the necessary funds tied up. On one thing all seem to agree: the third attempt better do it, or it may never happen.Commuters coming from the outskirts of Petržalka or Dúbravka to downtown Bratislava during morning rush hour, now have to either get up half an hour earlier than they did seven years ago or skip breakfast. If they want to park downtown after 9 a.m.? Forget it.Rising automobile traffic in post-communist Bratislava is clashing with the city's socialist -era public transportation network. Streets are more and more crowded and cars have to fight for space with scores of bus, tram and trolleybus lines.