Archive of articles - December 1998, page 3

Inspection at Slovenská Poisťovňa shows legal violations

Slovakofarma reports net earnings of 224 million Sk at end of 3Q98

T-bill yields set mark for 3-month rates

The Slovak foreign exchange and money market is enjoying a period of extended calm aided by low interest of customers and market participants. The crown floated between minus 10.3 and 10.7%, but remained stable as the German mark/Slovak crown cross moved in the range of 21.540-680 within the covered period.The DEM/SKK exchange rate started to be more monitored as the index of the past basket, and the dollar/mark moves did not have impact on the mark/crown exchange rate. So the level of 21.400 can now be defined as the first support for the mark/crown exchange rate and the level of 21.650 as the first resist.The market saw central bank officials accepting "the current trend in the Slovak crown's exchange regime" and quoting as positive the fact that "there have been no extreme fluctuations since the abolition of the fluctuation range".

Community Grapevine

The Slovak Spectator wins Czech-Slovak Management CupUS Embassy announces Democracy Network GranteesSlovak wins European small business person of the yearCentre for European Politics holds discussion on culture

Wedded Bliss

SDĽ jockeys for power with coalition partners

Slovakia's newly formed coalition government has been in power less than 50 days, but rifts within its ranks continue to open.During the second week of December, it was the turn of the reformed communist SDĽ party to rock the government boat. As the second strongest party in the four-member coalition, the SDĽ used tensions within the ruling SDK party to portray itself as an anchor of political stability.The SDK cast the first stone on November 23, when Justice Minister and SDK deputy Ján Čarnogurský voted against his own government's programme. The vote divided his party against itself and raised the possibility of a redistribution of coalition power in favour of the SDĽ.

Slovakia's foreign debt down to $11.86 billion in September

Rendering unto Caesar more than his due

The details of the cabinet's new economic package will not be known until December 16, but one thing is already clear: The state will look after its pocketbook first, and only then consider the needs of the economy and of business. Working folk will have to wait a month of Sundays until someone inquires after their health.To recap, the main pillars of the package include price hikes for electricity, natural gas, transportation and groceries, tax increases and the re-introduction of an import duty. These measures are being driven by two imperatives - reducing the trade balance deficit and cutting the fiscal deficit of the state budget.

Retail sales in Slovakia up 8.4% y/y in October

EP recommends Slovakia become integration front-runner

Equity market will bounce back in mid-January 1999

The beginning of December did not bring any significant changes on the equity market. The official SAX stock market index gained 4% during the last two weeks and closed at 85.20 on December 8. Trading remains very quiet and higher activity is not expected before the end of this year.According to Ľudovít Kaník, the new president of the national FNM privatisation agency, the FNM plans to swap corporate shares in its portfolio for privatization bonds (held by individuals) starting in mid-January 1999.The floating of shares in so-called strategic companies, such as power producer Slovenské Elektrárne, power distribution companies and savings bank Slovenská Sporiteľňa, would substantially invigorate the equity market.

Economic programme 'dangerous'

"It is the same, practically, as it was before under the previous government, which means they have not changed the system, only the faces."Peter Mihók, President of the Slovak Chamber of Commerce and IndustryPeter Mihók is the president of the Slovak Chamber of Commerce and Industry. Born in 1948, he has held advisory positions in state trade bodies for the better part of 20 years. The Slovak Spectator sat down on December 9 to talk with him about the new government's economic package and business philosophy.The Slovak Chamber of Commerce was established by an act of parliament in 1992, and represents Slovak companies and banks in their dealings with the state. In Mihók's words, the chamber is "the real voice of business in this country."

Transport fares to jump in 1999

Train and bus tickets will increase as much as 50% in the new year, but transport companies say the fare hikes will do little to mend their revenue shortfall."Even if prices were increased by 500%, we would still only break even - public transport would be neither profitable nor a loss-maker," said Miloš Čikovský, spokesman for the state-owned Slovak Railways (ŽSR).The transport hikes are part of an economic restriction package set to be approved by cabinet on December 16. Other austerity measures in the package include increases to energy, gas, fuel, tax and grocery rates.

Transpetrol shares back in state hands Minority shareholders demand $56 mil. compensation

Ignoring wails of displeasure from minority shareholders, the Finance Ministry on December 9 grabbed back a 34% stake in crude oil pipeline operator Transpetrol. The ministry had lost the shares in late October when they were seized by a regional court to settle a debt the state couldn't pay."The Finance Ministry simply corrected the decision of the Central Securities Register (SCP) and shifted the shares back," said Miloš Surovič, director of the capital market department at the Finance Ministry.But the unilateral move infuriated minority shareholders, each of whom had bought 5% chunks of the seized Transpetrol stake. Jaroslav Žák, president and general director of Bankers Trust ICC, represents the minority shareholders and says he is convinced the ministry's claw-back of the shares was illegal.

Christmas present ideas from The Slovak Spectator staff

Even in under-commercialised Slovakia, Christmas "shopping madness" is a fact of life in December. With only ten days to go before Christmas, most shops are open until the late evening hours. Some are even open on "zlatá nedeľa" ('golden Sunday'), December 19th, which means that everything you still want to buy will have been sold out an hour ago.To help protect readers from such disappointments, The Slovak Spectator has prepared a list of Christmas gift ideas and where to find them. Good luck!Jelka, art director, sour milk lover. "For my mother I will buy a nice silk scarf, hand made. I want it be very special."

New EXIM Bank management initiates detailed investigation

Local politicians to slash state power Mayors in parliament promise local benefits from co-operation

Slovak citizens will return to the voting booth on December 18 and 19 - this time to elect municipal governments across the country. Candidates say that the elections, which are being contested by an unheard-of number of federal politicians, are expected to give fresh impetus to the decentralisation of state power."Citizens have the power to influence the direction of development in 2,867 towns and villages with their votes," said Michal Sýkora, chairman of the Association of Slovak Towns and Villages (ZMOS) in an interview for the daily Pravda.One of the biggest 'developments' that citizens can influence is that of decentralisation - relaxing the national government's grip on power and giving municipal governments the financial and legal tools to make important decisions for themselves.

Letter to the Editor: Slovakia must judge tax policy carefully

Parliament opens door for provisional budget in 1Q99