Archive of articles - September 1998, page 2

Markíza struggle returns to square one

Just when it looked like peace was returning to privately owned Markíza TV, a Bratislava court decision reignited a furious ownership dispute at the station. Businessman Marián Kočner, who was within an ace of being confirmed as Markíza's new owner, had victory snatched from his grasp when the court ruled on September 23 that he should not have been given title to company shares in the first place.Kočner and his company Gamatex had bought the company Markíza Slovakia in a court auction on August 14. The deal occured after the court ruled that former Markíza Slovakia owners Pavol Rusko and SylviaVolzová had defaulted on a contract held by Kočner. Rusko objected strenuously that only Markíza Slovakia's assets, not its shares, were subject to seizure in the event of a breach of contract.

Press Digest

This week's collage

Quotes of the Week

Community Grapevine

New Irish Pub opensJapanese Culture Week

Movies

Horse WhispererTraps, traps, trapsMovies series of German film director R.W.Fassbinder

Slovak crown firms slightly, deposit rates soar

The Slovak crown strengthened slightly against its mark/dollar basket during the week from September 9 to September 16, but is still hovering around its 12-month low of between minus 5.50% and 6.0%.The central bank continued to support the currency with indirect interventions by setting the daily fixing stronger than market levels. However, orders by domestic corporate clients to purchase hard currencies prevented the crown from posting any more significant gains. The crown traded at 5.85% on the depreciation side of the (plus/minus 7.0%) fluctuation band around the basket parity on September 9, while the central bank set the fixing at 5.35% on the weak side of the fluctuation corridor.

Hard rain falls on 'exhausted' SDĽ

A cold and raw afternoon greeted the crowd which turned out on September 15 to attend the election rally of the reformed communist Party of the Democratic Left (SDĽ). Held on Hviezdoslavovo Square in downtown Bratislava on a rainy autumn afternoon, the rally limped painfully along on the shoulders of the exhausted SDĽ politicians."The clouds have gathered over Bratislava and the rain is coming down. But don't worry, my friends, it is our bright future that is raining on us!" said SDĽ Chairman Jozef Migaš to the crowd of several hundred people. Despite Migaš' optimism, the crowd thinned out as the rain began to fall more heavily.But when the politicos jumped up on the stage, the moribund audience came to life - some people grinned, while a smattering of applause was heard occasionally.

Gloomy outlook for the Slovak corporate sector

The market declined by 4.8% during the last two weeks, and the SAX closed at 108.03. Pre-election uncertainty and secondary impacts of the Russian meltdown (i.e. corrections of expected earnings) were behind the losses. Slovakofarma was hit particularly had as the market discounted its exposure to Russia and weak interim results: The company's shares fell by almost 26%. The market is expected to remain subdued in the run-up to the election with risks biased on the downside.Slovakofarma disappoints the marketFundamental problems to be felt soon

Inflation rate lowest since Sept. '97

Matador signs truck tire agreement with Continental

Community Grapevine

The Slovak Spectator hosts open cocktail partyBritish Council sponsors concertsInternational Women's Club presents coffee morningsEnglish club reignites

Slovak power stations funded by Americans

NBS report faults big state banks

"To a large extent it is the government's fault that we have not seen any faster restructuring of the problematic banks yet, since the state budget failed to provide the sum necessary to help restructure loans inherited from communist times."-Slovak bankanalyst who preferred to remain anonymousThe Slovak banking sector recorded an increase in overall assets in the first half of 1998, but still has not done enough either to improve its capital adequacy ratio or deal with classified loans. This analysis was the main thrust of a September 10 National Bank of Slovakia (NBS) report on monetary development for the first six months of the year.The central bank said the combined assets of banks operating in Slovakia totalled 815.3 billion Sk ($23.3 billion) at the end of June 1998, an increase of around five percent against the end of last year. Primary sources (deposits) of banks rose by only 900 million Sk to total 448.6 billion Sk ($12.8 billion) at the end of June.

Letters to the Editor

HZDS woos showbiz stars

Top fashion model Claudia Schiffer and the son of a popular French film star, Paul Belmondo, stopped off in Slovakia in mid-September to help Premier Vladimír Mečiar open two new stretches of the country's motorway network. The ribbon cuttings drew squeals of outrage from the political opposition, who said the Premier was using the reflected glory of high-priced stars to promote his own ruling party.On September 10, accompanied by Mečiar and other members of the Movement for a Democratic Slovakia (HZDS), Schiffer cut the satin tape to open a part of the D1 motorway from Horná Streda to Nové Mesto nad Váhom in western Slovakia. The official act was given saturation coverage on the prime time state STV television news broadcast the same evening.

VSŽ creates joint venture with two Slovak companies

HZDS leader master of stump eloquence

Slovak Premier Vladimír Mečiar produced convincing evidence of his talents as an orator at a rally in Trnava on September 15. Stumping for his ruling HZDS party, Mečiar had a crowd of four thousand people hanging on his every word, persuaded that he is still the most charismatic and riveting speaker in the country."We're number one," he boomed several times to the enthusaistic cheers of his audience, which was packed into the city Sports Hall. When Mečiar arrived, the mostly elderly audience broke into a spontaneous three minute standing ovation, and applauded lustily throughout the Premier's address. Mečiar answered prepared questions on agriculture, NATO and EU integration, youth issues and housing construction, among others.Many people at the rally expressed their admiration for Mečiar and for his committment for Slovaks. "He is so good, and so smart. He is attacked so much. If nothing else, I will vote for him just for that," said a female cook in her thirties.

Motorola buys out Tesla Piešťany plant

Last week, the American company Motorola won a public tender for all assets of Tesla Piešťany a.s, a bankrupt former producer of integrated circuits. Motorola officials planned to begin production of semi-conductors at the new site in the western Slovak town of Piešťany, the Slovak press reported on September 11."The official start-up of the plant is planned for the beginning of next year," said Václav Šmíd, Motorola's director of market development for the Czech and Slovak Republics. Šmíd said that the new company, Slovakia Electronics Industries, will employ around 1,500 people. "Our plan is in five to seven years to export $60 million per year," Šmíd said.No details have been provided of the sum Motorola paid to buy Tesla's assets, but the company said their investments into the Pieštany factory should reach $88 million by the end of 2001.