Archive of articles - November 1998, page 2

SLSP supervisory board directors recalled and replaced at shareholders meeting

Slovakia buries hatchets with neighbours

After a week of visits with Czech and Hungarian leaders and an appearance at a regional summit, Premier Mikuláš Dzurinda declared himself confident that the new Slovak government could mend fences with its neighbours, the Visegrad countries."After years of cooled relations among these countries and the recent political changes that have occured, the Visegrad group has found a new path towards western structures," said Ján Figeľ, the state secretary at the Foreign Ministry and Slovakia's main negotiator for EU entry. Figeľ predicted that the 'Visegrad Four', as Slovakia, Poland, Hungary and the Czech Republic are known, would be revived as an organisation after stagnating during the reign of former Slovak Premier Vladimír Mečiar.

Slovakia's 1998 foreign trade deficit estimated at 65-69 billion Sk

What's Happening in Bratislava

Markets applaud changes

Financial markets gave yet another round of applause to the new government of Premier Mikuláš Dzurinda when yields on Slovak Eurobonds fell sharply in October. In response to the formation of the cabinet, interest yields to maturity dipped from 10.5% to 5% above the five-year German government bonds, Bunds."The political situation in Slovakia [before the September national elections] was the main risk for foreign investors to invest here," said Dušan Meszáros, a London-based analyst for the Dutch investment bank ING Barings. "The change in the political orientation of the country has had a significant influence on Eurobond prices."

Forex reserves fall to $7.0442 billion

State ponders buying 25% of VSŽ

In the midst of a financial crisis at Slovakia's largest company, steel-making giant VSŽ Holding, Premier Mikuláš Dzurinda announced on November 24 that the state could bail out the firm by buying a 24-26% share of VSŽ.On November 9, VSŽ Holding failed to repay a $35 million loan from American investment bank Merrill Lynch. Following the default, accusations of financial mismanagement at VSŽ flew from the lips of cabinet members and stock analysts."In [bailing out VSŽ], the government will make use of a significant block [25%] of shares that is collateralized in [state banks] Slovenská Sporiteľňa and Priemyselná Banka," said Dzurinda, speaking at Economic University in Bratislava.

Manufacturing consent

Independent Rádio Twist has a show called "Black Box," during which listeners can dial in to the station and blow off steam about anything that is giving them grief. In late November 1998, the most frequent cause of agitation among Black Box callers was the bitter economic medicine announced by the new government."They're going to raise electricity and heating, and also food prices. What the hell am I going to do? I never should have trusted them," said one man in what has become a fairly standard Black Box tirade. The sense of personal injury generated by Black Box programmes is intense, and barely one caller in ten reminds viewers that the economic hardships they are dreading were brought on the nation by four years of government under Vladimír Mečiar.

October unemployment rises to 13.9%

Positive signs accumulating as cabinet tackles banks, economy

Equity market continues to declineGovernment presented programme to parliamentEconomic indicators worsenVÚB privatisation shelvedST going private

Ski slopes open for season

An early winter freeze, which has claimed over 120 lives across shivering Europe, has brought cheers from hotel owners and ski-lift operators in Slovakia's mountain resort regions.Favourable mid-November weather conditions left some areas in the northern Slovak High Tatra mountains with more than 80 cm of snow. Temperatures at Lomnický Štít (the second highest Tatra peak at 2632 metres) has hit minus 20 C, allowing ski resort operators to use artificial snow machines with abandon. Even the Low Tatra mountains have opened up resorts, with the famous Martinské Hole attracting over 1,000 skiers from November 21 to 22.

DHL Director slams import regulations

DHL International Slovakia currently receives around 600 shipments a day for distribution throughout the country. But in spite of the fact that they are the biggest shipping company in Slovakia, none of their air shipments arrive directly to Bratislava Airport. Instead, DHL opts for the much larger and more frequented Schwechat International Airport in Vienna.According to Robert Paterson, General Manager of DHL, Slovakia's tangled customs bureaucracy negates the advantages of flying intoBratislava airport. "Customs clearance in Bratislava takes hours, not minutes, so the time difference between flying to Vienna and then trucking the goods for an hour and a half [to Bratislava], or flying directly into Bratislava is neither here nor there," he said.

Revision to Strategic Companies Act passed

An amendment to the law on strategic state-owned companies was passed on November 20. The new law prevents the privatisation of the country's second largest bank until the end of next year and re-establishes state control over personnel changes to top management at state firms.During parliamentary debate prior to voting, Finance Minister Brigita Schmögnerová praised the law as the first concrete step towards ending state decisions that favoured interest groups close to the government. Ján Cuper of the opposition HZDS party, on the other hand, said the law opened the gate to the privatization of strategic companies.

Topvar brewery shareholders reject SAB investment bid

Slovak Premier wants foreign investors to help strengthen banking sector

Quotes of the Week

The castle legends of Považie

Castles, those stone guardians of history, line western Slovakia's Váh River and loom large in the nation's folklore.Slovakia's longest river, the Váh winds through the Považie district like a blue ribbon, giving the countryside its typical deep-valley look and character. Považie is part of the larger Žilina region, which has a higher concentration of castles than any other part of Slovakia.Many of these castles have suffered the merciless advance of time. Standing like ragged teeth on many a hilltop, they sleep in ruin and rubble. But the legends inspired by their owners and their busy garrisons are still very much alive.

New FNM Presidium cancels some decisions of predecessor

VSŽ refuses cabinet help

Top management at the giant VSŽ steel works accused the Slovak government on November 17 of using a financial crisis at the company to force changes to the firm's leadership.Julius Rezeš, company president and chairman of the VSŽ board of directors, said that at a November 10 meeting with VSŽ leadership, cabinet officials had produced one demand - changes to the board of directors. The meeting had been called to discuss solutions, including a state loan guarantee, to a liquidity shortage at Slovakia's largest industrial company. On November 9, VSŽ had failed to repay a $35 million syndicated loan arranged by Merrill Lynch.