Archive of articles - July 1997, page 3

Market takes a hit after news about Slovakofarma, Slovnaft shakes confidence

Trading volumes and prices continued to decline on the BSE floor market during the second half of June. The SAX stock market index slumped to its year low of 166 due to heavy losses in Slovnaft and Slovakofarma. The images of both companies have been seriously damaged in recent days. Slovakofarma's share price fell almost 900 Sk to 3,571 Sk after it was announced that it is one of the owners of ProTV, the unsuccessful contender for the STV2 channel privatization. It has also been publicly stated that Slovakofarma promised to invest 250-300 million Sk ($7.5-9 million) in ProTV. This is certainly not in the interest of minority shareholders, since the representatives of ProTV have stated that their project was not intended to "make money." We believe that this is also a negative signal that current well respected management is partially losing ground in Slovakofarma to the interests of politicians involved in the company privatization.

Murky Slovnaft sell-off could hurt market

The National Property Fund (FNM) on June 24 approved without notice the sale of a 15-percent stake in Slovnaft, the country's sole oil refinery, for 384.61 million Sk ($11.5 million) to a management-led group Slovintegra. Analysts say that the murky trade may prompt investors to dump the firm's shares and further damage the already poor image of the country's capital market.The FNM did not disclose any further details on the sell-off and its officials, as well as Slovnaft representatives, were not available for additional comment. Peter Bisák, the Privatization Minister, though, said he didn't know about the sale when asked to comment three days later in the Parliament."I don't know anything about it," Bisák said. "I haven't seen the privatization project." Slovintegra, owned by Slovnaft officials and staff, paid 155 Sk ($4.69) per share, compared to $24 per share on the open market. After the sale, Slovintegra became the majority owner of Slovnaft, raising its stake from 39 to 54 percent.

SAEF announces renewed money infusion

Last month, Slovakia's starved capital markets received the good news that the Slovak American Enterprise Fund (SAEF) was planning to feed a further $25 million to small and medium-sized private businesses in the country. Restricted money supply and exorbitant interest rates guarantee that the new funds will be snapped up quickly by eligible entrepreneurs.Established in the former Czechoslovakia in 1991 and reconfigured in Slovakia in 1993, the SAEF was the first significant investor in the country, injecting to date more than $15 million into the Slovak economy in the form of debt and equity payments, and an additional $3 million through a joint lending program, known as the American Loan Program (ALP) engineered with Slovakia's Poľnobanka.

Gabor opened plant in central Slovakia

Slovak youth grows violent, as crime goes up

"Is it easier for a kid to work all month for 5,000 crowns, or to steal a mountain bike from another kid in Petržalka and sell it on the black market for 3,000 crowns?"Major Jaroslav Penc, Bratislava District 1 Police Chief Slovakia's newest generation of teenagers apparently has less in common with Macaulay Culkin, the nauseatingly naughty star of Home Alone, than with Trainspotting 's immoral and crime-prone Ewan MacGregor, according to some of Slovakia's leading police and academic figures. Anybody who lives in Bratislava's district of Petržalka tends to agree.Yet, observers do not hold youngsters entirely responsible for their hoodlumry. Caused by political and economic corruption at highest levels, they argue, the moral ambivalence is dripping through all levels of Slovak society, leaving kids in the dirtiest debris.

Mazda 626 GLX excites middle age professionals looking for class

Introduced in Slovakia in 1992, the middle-class Mazda 626 is a solid seller. In 1996, 299 of them were sold, making it the fourth best selling car in its class. The 626 vies for market share with the Daewoo Espero, VW Passat, Renault Laguna, and Opel Vectra. As of June, 1997 sales of the 626 in Slovakia are climbing past 200.According to Norbert Hirtl, Technical Director at Auto Palace Slovakia in Bratislava, the Mazda authorized importer, sales of the 626 were originally targeted to owners of small companies. Today, mostly middle management people in the 35-50 year-old age category buy them.Turning on the ignition, I immediately knew I was in a Japanese car. The 626 emits that tell-tale refined purr, suggesting that all engine parts are working together in a well engineered harmony. Gear shifting is smooth and easy, and the 2.0-liter engine delivers a respectable amount pull and power. The acceleration is not dramatic, but good for a car its size.

For the sake of stability, all four Visegrad countries to NATO or none

In all probability, Slovakia will not be invited to join NATO at the July 7-9 summit of alliance countries in Madrid. It is a historic moment in Europe, but not a very well defined one. Many Slovak citizens are confused about what NATO membership would do for their country. Slovakia is not unique in their confusion as citizens in front-running countries, the Czech Republic, Hungary, and Poland, are also asking what membership really means. Even NATO itself seems confused, expanding the military pact with no real military enemy. Before NATO makes the landmark decision to bring in new members (which it will certainly do this week), it would have been better to wait until those questions were sorted out in the Czech Republic, Hungary, Poland and Slovakia. These countries are not the only ones that could have used time as citizens in NATO countries need to sort out for themselves the exact aims of the alliance.

SPP signed $270 million syndicated loan

The people of Kysuce keep life simple through tough times

A steep, winding path up the hill leads to a small wooden house standing alone in the shade of several trees. An old man resting on a bench puts his heavy wrinkled hand on the head of a big brown dog who sits calmly by his legs. The dog looks up at the man and wags his tail. They understand each other, living together more than 15 years. Just the two of them. Life is not easy here, but they are used to it.The man's daughter and two sons built big houses down in Čadca. They asked him to come to live with them. But no, he does not want to. His father and grandfather lived here, so why should he change?Electricity? What for? An old white brick stove gives him enough warmth and light.

Cabinet asks for softer EU criteria

The Slovak cabinet on June 10 approved a resolution asking the European Union's (EU) Association Council to extend the five year approximation period for another five years.Submitted by vice-premier and Finance Minister Sergej Kozlík, the document was discoverd in the press two weeks after it was approved somewhat obscurely in a thick book detailing the cabinet's session. The cabinet's wish to off-handedly report such an important action sends two signals.One, asking for an extension from the EU to keep secondary status for five more years thus ensuring economic protection contradicts the cabinet's rosy statements to the public that Slovakia is at the top of the economic list of the former socialist countries heading into the EU. But secondly, the cabinet realistically appraised the situation in requesting further economic favors from the EU recognizing that all is not well.

EXIM Bank started on July 1

Too much on business, Bratislava

As a teacher of the English language here in Slovakia, I use whatever materials I can to teach my students. The Slovak Spectator is very useful. However, my students and I have noticed that The Spectator is heavily slanted toward business coverage. We don't understand why this is so. We understand money is important, but to be the lap dog of business is never a good idea.I also think that the newspaper is biased in its news coverage; by this, I mean the news is predominantly about Bratislava. I do not live in Bratislava, and it's not the only town in Slovakia. One could simply believe it was after reading The Slovak Spectator. Why, for instance, do you always carry the cinema times for Bratislava? Why not Žilina, Banská Bystrica, Trenčín, etc? You see my point.Also, on the front page, why can't you carry stories from around regions, instead of tucking them away on page 2, as you do? Furthermore, why can't there be an arts section? It could incorporate all aspects of art - sculpting, painting, writing, etc. There are many fine artists here in Slovakia; after all, this is the home of Andy Warhol and Paul Newman's mum.

Finance Ministry, Investment Funds war rages on

When Peter Staněk took office as the new Finance Ministry State Secretary earlier this year, he ceremoniously buried the hatchet between investment funds and the ministry. But now it seems that the new tribe leader cannot resist a battle cry either.The ministry is suing investment funds that transformed into ordinary joint stock companies to escape the heavy hand of Staněk's predecessor, Jozef Magula. In at least 25 petitions signed by Staněk, the ministry demands that courts nullify the transformations and all legal acts based on them, accusing the funds of directly breaking the Investment Companies and Investment Funds Act.The Slovak Spectator obtained a copy of one such a lawsuit. Based on information from investment funds, all of them are the same except for names and some other particular data.

Royal PTT Netherlands to enter Slovak Telecom

Young manager opens office for AGS International Movers

Peter Pančík, 25, fresh out of Bratislava's Economic University, has been working sine June 1 as the director of the newly-opened Bratislava office of the French company AGS International Movers.In spite of his age, Pančík has been able to amass an impressive amount of international experience. In 1991 he became a member of the international business students' organization AIESEC, where he went on to become a project coordinator and an internal auditor for AIESEC Slovakia.In 1994, he worked in foreign trade in Croatia, where he exported and imported in the machine-building industry. A year later, he joined the travel agency Tiptour and remained there for a year as a deputy sales manager.

Bratislava's Top Spots for Outdoor Dining

Now that it is July and summer have most certainly arrived, it is irresistable to do as much as possible outside - and that includes eating. More and more of Bratislava's restaurants are finding ways to serve people their meals under the sun or stars. The capital's outdoor dining experiences can be broken down roughly into four categories, according to what they offer: scenic view, old town atmosphere, people-watching, or just a seat out of doors. Virtually none of our picks offer more than one of the first three.

Igniting a career or going up in smoke?

Andrea Karnasová is an actress. She is one of many who studied at Bratislava's conservatory, and one of many who now perform in small venues and work as film "extras" as they chase the dream of getting their big break in show business. At 23 years old, she is paying her dues, expecting that greater things will one day sweep her away. "You have to really work to find work," Karnasová said following a recent performance of Slúžky (Servants) at Bratislava's Divadlo West.Igor Krempaský, another actor, agrees wholeheartedly. "The hardest thing is survival," he said. "Young actors here really have only two venues in which to work - dubbing and radio - nothing else." Csongor Kassai, the third performer, can't do either one because of his slight Hungarian accent. "Despite this handicap, I act, because I can't do anything else," Kassai said as he shrugged his shoulders in exasperation.

July 1 brings several price changes

Mečiar's office responds to Spectator's open letter

Your weekly newspaper, with its open letter addressed to the Prime Minister ("Editorial," Vol. 3 #11 - June 5-18, 1997), has blended in with that brand of Slovak journalism that eagerly attacks the person of the Slovak Prime Minister. The ability to make an independent analysis and to ask questions based on it - this ability, which is part of profesional independent journalism - unfortunately seems to be missing in the editors of The Slovak Spectator. It was substituted by general accusations and abstract phrases. The questions, which your editors so pompously asked, were asked a long time ago and in a more appropriate manner by other journalists, and the Prime Minister has repeatedly responded to them.From your questions, you display an obvious, maybe intentional ignorance of media coverage of current political events. For example, on the subject of the referendum, which took place on May 23 and 24, 1997, and not on May 24 and 25 as you wrote on your front page (Vol. 3, #10), the Prime Minister expressed his views thoroughly in a special press conference on May 25, 1997.