Archive of articles - November 1998

A wine-drinker's guide to Christmas in the capital

Sleet, slush and thick coals moke fogs have returned to Bratislava, marking the arrival of winter. For four months, it will be evening all afternoon in the capital, and the smell of wet shoes will reign in office hallways.The only known antidote to this protracted misery is varené víno, a kind of mulled wine that has become synonymous with Christmas in Slovakia.Wine-drinking, of course, is not a new custom in the capital. The nomadic Avar tribe, which invaded Slovak territory in the sixth century A.D. and chased out the Slavs, was so fond of wine that "their unquenchable thirst was the main cause of their [eventual] downfall," according to historian František Kalesný.

Revised 1997 foreign trade deficit 67.6 billion Sk

Around Slovakia

Interior Minister says police afraidFake robbery revealedFatal results of Rambo-like robberyThree defraud lottery office

Interior Minister refuses to publish Romany crime figures

President Melocík survives Slovenská Poisťovňa supervisory board meeting

Have A Little Faith

Curency movements await new direction from central bank

The Slovak crown experienced calm development from November 19 to 26 as the market floated between 10.6 and 11.6% on the weak side of the former basket band. The index was insensitive to dollar-mark moves, as the mark-slovak rate often did not react to dollar-mark volatile development.It is unlikely that the crown will become sensitive to the majors anytime soon, as the market will begin to trade DEM-SKK (EURO-SKK from January) as soon as the central bank changes FX position limits for commercial banks.The next currency regime, however, is still unclear, as central bank representatives said that a new anchor for the Slovak economy would have to be found, and did not rule out that this anchor would be linked to the currency.

Finance Minister receives IMF mission

Letter to the Editor: Criticism of Mečiar-era Slovakia unfair

Clinton advisor says NATO entry requires further reforms

Ministry cancels state housing subsidies

Citing empty state pockets, István Harna, the Minister of Construction and Public Works, announced on November 17 that the government could no longer offer loans to citizens wanting to build homes and flats."The State Housing Development Fund has no more funds to satisfy eligible applicants," said Harna. "So far this year, the fund has been unable to satisfy 147 applications from 1997, amounting to 82.5 million Sk [$2.29 million]," he added.According to Harna, so far this year the fund has received 8,631 applications totalling 4.9 billion Sk ($136 million), but has no money left in its coffers. "The previous administrators of the fund used up money allocated for 1998 in July this year when they used it to satisfy applications submitted in 1997," he explained.

Slovakia disappointing at CEI summit

During the weekend of November 19-21, political chiefs, business leaders and other central European luminaries met in Zagreb, Croatia at the first annual Central European Initiative (CEI) Summit. The summit was an overwhelming success, with delegates from the 16 CEI member countries taking part in discussions on the political, macroeconomic and business environment of the region.The conference gave each country of central Europe two basic opportunities to formally present itself. The first chance came through the country exhibition stands, which offered information on investment environments, privatization opportunities, tourism and so on. The second and more important opportunities were the country profile presentations, in which leading political officials and members of foreign investment agencies made a concerted public pitch to attract investors.

Community Grapevine

Media in USA lectureCecil Beaton, the 'dandy' photographerStudy GuideBritish Council bids farewell to director Sue Wallace - Shaddad

'Underground University' book to be released

A new book entitled 'Velvet Philosophers' is set to hit stands in Slovakia in spring 1999. Its author, Barbara Day, founded the Ján Hus Foundation in Great Britain to support higher education in the Czech and Slovak Republics, and was one of the original members of the 'Underground University', a clandestine communist era academic circle that promoted international contacts at a time when they were forbidden. 'Velvet Philosophers' is the story of this almost-forgotten group.Day was in Slovakia in mid-November to give a presentation on the history of Underground University and to promote her new book. The research that went into "Velvet Philosophers" was sponsored by the Ján Hus Foundation, which wanted to study the people who participated in this unique movement in the 1980's.

Banks leaving emerging markets

The decision of American investment bank Merrill Lynch to recall a $35 million loan to Slovak industrial giant VSŽ has been a major embarrassment to the company's senior management. And yet, as bad as it looks for VSŽ, the Merrill Lynch move had as much to do with global financial market trends as with confidence in the east-Slovak steelmaker.Around the world, large investment banks are pulling out of emerging markets like Slovakia. Shocked and chastened by financial crashes in Asia (1997) and Russia (1998), banks are currently trying to reduce their 'exposure' - the amount of credit they have extended - in eastern European and Latin American countries. Not only are loans being recalled, but staff and even entire branch offices are being written off to protect profit margins.

Slovak Telecom to become joint-stock company on January 1

Minister wants OECD accession by mid 1999

Finance Minister Brigita Schmögnerová told delegates to a Bratislava international investment conference on November 23 that she was convinced her country would become a member of the Organization for Economic Cooperation and Development (OECD) during the first half of next year.Schmögnerová also said that the government was on the verge of launching a restructuring programme for the nation's banking sector, a move she linked to Slovakia's attracting increased direct foreign investment (FDI) in 1999. She predicted that restructuring at Všeobecná Úverová Banka (VÚB), the country's second largest bank, would take one year, while negotiations on a foreign capital entry to the troubled Investičná a Rozvojová Banka (IRB) are about to begin.

Fate of ailing firms in hands of banks

The revised Law on Strategic Companies, passed by parliament on November 20, effectively cancelled a much-criticised law allowing the debts of large firms to be forgiven by the government. Known as the Revitalization Law, the measure had originally been passed by the government of former Premier Vladimír Mečiar in 1997.The cancellation of the Revitalisation Law, however, did not solve the problem of how to deal with projects already approved by the Central Revitalisation Commission, a body composed of government and senior bank figures which had been responsible for deciding which companies would receive leniency from the state.

Tatra Air appeals for state aid

Slovakia's airline sector has been in turmoil since the Slovak government decided to suspend the license of the largest domestic carrier, Slovenské Aerolínie, as of November 16. The suspension, which was enforced by the ministry for "long-term problems" regarding the airline, has not been explained by either the ministry or the airline, both of whom claimed they had come to a "gentleman's agreement" to keep the matter secret.But Slovenské Aerolínie's problems have opened a door to the domestic carrier market for competitor Tatra Air. Jean Charles Bemberg, President of Tatra Air, told The Slovak Spectator he had submitted a proposal for state support of his airline to the Ministry of Transport, Post and Telecommunications on November 18. In return for state aid, Bemberg said, Tatra Air pledged to open new destinations and assist in the rehabilitation of Slovenské Aerolínie.