Archive of articles - May 1998

International experts warn against activating nuclear plant

The May 5-8 inspection of Slovakia's controversial Mochovce nuclear power plant by an international team of experts concluded that if the plant were activated now, it could lead to radioactive contamination of the reactor. The team warned that although some safety hazards at Mochovce had been corrected, the plant should still not be brought into operation after May 20 as called for in the original time schedule. The Slovak side, meanwhile, assured the public that it would not commence operations at the nuclear plant until it was deemed safe.Wolfgang Kromp, the head of the inspection team, issued an urgent warning on May 15 to Slovak Prime Minister Vladimír Mečiar, Austrian Chancellor Viktor Klima and Mochovce plant director Tibor Mikuš.

Eximbanka's fruitless harvest

Eximbanka was just one of many projects the government seeded last year to boost the export performance of Slovak enterprises. But the harvest so far has been poor, and critics allege that the government is not serious about raising a crop of strong exporters.Created in July 1997, Eximbanka was conceived to insure Slovak producers against risks while exporting to countries like Russia, to extend export loans to them and to enhance their export capacities. But the bank remains without a budget in 1998, largely because of irregularities in the disposition of 1997 funds.

Biotika posts 179.4m Sk '97 loss after 8.8m '96 profit

Slovnaft's gross profits grow 26.6% in 1Q98

Foreign companies increase wages

According to the Slovak Statistical Bureau (SUSR), wages generally grew in Slovakia in 1997. The upward trend was particularly visible in companies which had access to foreign investment capital. While Bratislava region still enjoyed the country's highest wages, the rest of Slovakia regions have been catching up quickly, the Bureau reported."According to our research from October 1997, wages rose 10% on a basic salary," said Eva Gollvitzerova, Hay Management Consultants. Wages in the private sector are approximately one and half to two times higher than those in the state sector. Companies with foreign capital paid wages that were two or three times higher those of state sector employees.

Party of Hungarian Coalition mired in ego problems

Despite an April 30 truce in a media war of words between the two biggest members of the three-part Hungarian Coalition Party (SMK), verbal shootouts have continued, evidence of the tensions that remain between the two ambitious would-be leaders of Slovakia's ethnic Hungarian community.The recent rows have featured Miklós Duray, Chairman of Együttelés-Coexistence (E-C) movement, and Béla Bugár, Chairman of the Hungarian Christian Democratic Movement (MKDH), each of whom feels that his party should lead the Hungarian coalition into the election campaign.

Letter to the Editor: Ethnic groups can live together

Around Slovakia

Doctors defend infants' rightsFestival of Ghosts brings back old stories

Letter to the Editor: Two types of Slovaks exist

Money supply grew 11.6% annually in March

Libellous leaflets smear two reporters' reputations

Radio Twist reporter Karol Lovaš woke up on May 14 to discover that hundreds of leaflets, bearing his photograph and accusations that he was a homosexual pedophile, had been distributed around the Bratislava housing estate of Dolné Hony."I was totally shocked," said Lovaš. "I'm neither a rapist, nor a homosexual, and I don't have anything to do with porno cassettes."The leaflets also carried a picture of Slavomír Klikušovský, a reporter with Slovakia's largest daily newspaper, Nový Čas. Under the headline "People Beware!!!," the flier warned the public that "two homosexuals live in your neighborhood, at Bodrocká ul. 4, that are sexually abusing underage boys." After identifying Lovaš and Klikušovský by name, the leaflet claimed that "they are living in a flat rented from a certain movie director, where they make homosexual pornographic tapes with young boys."

The Spotlight

Boogie NightsSphereDeep impactThe postmanIn & outThe man in the iron mask

SAX continues down dreary path to record lows

Market developmentsNegative market sentiment continues to forestall any activity on the equity market. On May 13, the stock market once again reached an all-time low as the Slovak Stock Index (SAX) fell to 128.02, down 3.2% from two weeks ago. The decline was brought about by heavy losses to Nafta (-13.1%), VÚB(-11.4%) and VSŽ (-5.0%) which together account for one third of SAX capitalization.

Foreign company's approach to labor unions depends on origins

The kind of relationship that will be found between managers and workers in labor unions at foreign owned companies depends mostly on what country the foreign investor hails from. Some companies have a healthy relationship with labor unions, but others have tried to eliminate the union's power, and some have simply avoided dealing with them."Concerning a foreign company's approach to unions, the most important factor is the origin of the firm bringing in the new capital," said Stanislav Tarnovský, head of the economic and collective bargaining department at Kovo, the Metalworkers' Federation, Slovakia's largest Labour Union Federation.

Thomson Bankwatch downgrades ratings of three banks

Thomson Bankwatch, a Thomson financial services company, downgraded Slovakia's sovereign risk rating to BB from BB+ on May 4, citing the country's fiscal deficit and external debt problems."The sovereign Risk Rating downgrade is based on the country's persistent deficits on both fiscal and external accounts, which are being financed by short-term foreign borrowing. Fuelled by strong domestic demand, the Slovak economy faces a lack of local financing to cover continued high public spending and costly import bills," wrote Betty J. Starkey, Thomson BankWatch Director of Sovereign Risk, in a statement.Slovakia's gross foreign debt totalled $9.9 billion at the end of last year. The country's budget deficit at the end of 1997 was 37 billion Sk ($1.7 billion).

Trade deficit widens in first quarter

The Slovak Statistical Office (ŠÚSR) said on April 29 that Slovakia's foreign trade deficit in the first quarter (1Q) of 1998 rose to 16.6 billion Sk ($482 million) from 15.4 billion in the same period last year. While government officials declared themselves satisfied, economic analysts said that the figures seriously jeopardize government's 1998 trade deficit target of 45 billion Sk ($1.3 billion).Economic analysts said the figures reveal the ongoing dependence of Slovak industry on imports for production input, as well as its inability to turn production output into attractive exports.

Killing the the deadly computer bug

Another month closer to the deadline of January 1, 2000, the day when havoc will reign in the kingdom of the microprocessor, has brought precious few new ideas for tackling the "Y2K" computer bug, the problem of the two bytes that on January 1, 2000, will think it is the year 1900.For many hardened pessimists, that day will bring utter disaster. For those pragmatists who take the necessary steps, though, it could be just another day at the office. Most major corporations are already frantically working on this problem, hoping that time and resources do not run out. "Among [our] most important customers are financial institutions which occupy prominent positions on the Slovak financial market, and they cannot ignore this problem," said Elena Akácsová of GraTex International, a company which offers assistance in exterminating this dangerous bug.

Eye on Vienna

Head hunters have a long way to go, declare managers

Freelance journalist Petra Lodén asked four international companies their impressions of human resource firms on the market for The Slovak Spectator. Their unanimous reactions reflected general discontent with employment firms, compared to their western European counterparts.Criticisms focussed on a lack of professionalism, unrealistic prices, lack of a deep personnel database, and a low success rate for placed candidates. In defence of human resource companies, the Slovak labor market is very small and the pool of qualified people rather thin. Because of these factors, companies are forced to rely on head hunting firms to find qualified employees - especially top management - even though they have not been satisfied with their results in the past. Here are four managers' stories.