Archive of articles - February 1999, page 3

Largest banks consider merger

The Finance Ministry has long said its plan for the nation's two largest state banks involved finding foreign investors who were both brave and wealthy enough to inject capital into the troubled institutions. In the last several weeks, however, a proposal by the bank's two presidents to merge their insitutions has sparked debate over the best way to address the sector's dire need for restructuring."Merger of the two banks is an interesting idea," said Martin Barto, a former senior analyst at Dutch investment bank ING Barings. Barto, who took office as general director of the strategy division at Slovenská sporiteľňa (SLSP) on February 1, said that a such a merger would result in a single strong Slovak state bank, which would then have better chance of survival even if Slovakia were to join the EU.

Controversial VAT hike debated

The Slovak government is considering raising the nation's Value Added Tax (VAT) April 1 in an attempt to bring an additional 8 to 12 billion Sk into the 1999 state budget. But the hike, which would push up prices on basic consumer goods, has already become a source of political conflict between left and right wing ministers in the Slovak cabinet.Deputy Prime Minister for Economy Ivan Mikloš, a member of the conservative Democratic Party (DS), said at a February 15 press conference that the cabinet was planning to increase the minimum VAT rate from 6% to 10% or 12%.But scarcely were the words out of his mouth when Brigita Schmögnerová, the highly-regarded left-leaning Finance Minister, said that the increase had not yet been settled on and that the ministry was carefully considering other options.

Opinion poll grants Rudolf Schuster presidential victory

Poll shows government retains support as HZDS holds on to faction

Banks say state, NBS must clarify strategy

Having taken the first big step towards restructuring the banking sector - replacing the managements of each big state financial institution - cabinet is now poised to transform the loan portfolios of these troubled banking giants. The banks themselves say that the necessary changes cannot be implemented by new management without the active support of the central bank and cabinet.Besides its legion economic and financial burdens, the new cabinet has inherited state banks plagued by non-performing loans and low liquidity.

Compaq 1998 hardware sales plummet

Accustomed to being king of the hill in most Slovak information technology sales categories, global computer giant Compaq was rudely suprised by its Slovak sales results for 1998. Compaq saw sales plummet in many market segments, including desktop sales where the firm's products recorded a 45% decrease.Statistics provided by the Internation Data Corporation (IDC) show that the Slovak computer market as a whole suffered a lean year in 1998. However, the two major players on the scene, Compaq and IBM, had far different annual results. While Compaq began and ended the year as number one on the market (a category that combines desktop, laptop and server sales), it suffered a dizzying fall of 38.4% in units sold.IBM, meanwhile, grew 17.6% in overall hardware sales in 1998. While the firm's 1997 unit sales figures were only 45.8% of Compaq's totals, in 1998 the gap narrowed to 87.5%

Slovak, Hungarian Prime Ministers pledge mutual support

Quote of the Week

Cabinet delays approval of 1999 state budget

Disagreements over a proposed tax hike and the reinstatement of an import surcharge stalled the passage of the 1999 state budget from the government to parliament on February 17. The cabinet deadlock leaves state-funded agencies to continue struggling with an inadequate provisional budget and wondering how their agencies will be cut in the coming months.Finance Minister Brigita Schmögnerová, speaking at a press conference following the cabinet meeting, said some details remained to be ironed out, but declined to specify which ones. She said that approval of the budget would now not come until February 24 at the earliest.

VSŽ senior board member Thomas Graham resigns

Thomas Graham, former president of US Steel, has resigned his post on the recently appointed three man board of troubled Slovak steel maker VSŽ Holding a.s., a VSŽ spokesman said on February 17.No reason for Graham's resignation was given but the spokesman said an extraordinary general meeting on February 19 would vote on a successor. Graham became a board member in December after major changes following revelations of deep financial problems at VSŽ, Slovakia's biggest company.The spokesman said the EGM had been called to deal with the question of a replacement for Graham, to change the remuneration structure for supervisory board members and to change the company's name from VSŽ Holding to VSŽ. No further details were available.

Around Slovakia

Gypsy youth beaten unconsciousIndependent theatres ask for government subsidySoldier loses hand removing snowPalacka and wife released from hospitalAvalanche warnings

Parliamentary committee votes to lift amnesty from former minister Krajči

Experts: Slovak AIDS rate on the rise

The AIDS virus reached a somber milestone in Slovakia in early 1999, when the 100th person in the nation's history found out that he carried the HIV-virus. While the country's AIDS figures were still relatively low, health officials warned, they could soon rise as high-risk behaviour increased among Slovaks.Of the total number of people infected with the deadly disease, 70 are Slovaks, of whom 59 are men and 11 are women. The disease has reached the stage of full development in 19 cases while 14 people have died of AIDS, said Daniel Stanček, director of the National Center for HIV/AIDS in Bratislava. There were 12 new cases reported in 1998."The rate of AIDS in Slovakia is still one of the lowest in the world," said Lisa Jacobs, a press officer with the World Health Organization. In Germany for example, 35,000 AIDS cases have been reported.

Antitrust Office reviewed 275 cases last year

State to borrow 89 billion Sk to repay debt principal

Microsoft targets software piracyCompany says Slovakia major offender

Over 33% percent of all computers sold on the Slovak market operate under illegal systems, revealed an internation anti-piracy outfit at a press conference in Bratislava on February 15. Microsoft, the international giant of the software industry, used the conference to warn that it has decided to get tough on piracy in Slovakia.Representatives of the Business Software Alliance (BSA), a Microsoft company that fights piracy internationally, told journalists that police raids have thus far exposed illegal piracy operations in both Bratislava and Detva.According to Roman Sládek, president of the BSA, tolerance for piracy no longer exists. "Piracy is robbery," he said. "This is not simply a case of gentlemen misbehaving. Pirates are thieves."

Blizzards leave country buried

According to an old Slovak proverb, every year on November 11, a man named Martin comes galloping into town on his white horse bringing Slovakia its first snow of the year.The blizzard which slammed into Slovakia during Valentine's Day weekend, however, had many in the country wondering if Martin had been dissatisfied with his earlier effort."Martin has gone crazy!" said Alper Olzogman, 24, a British-born English teacher who has lived in Slovakia for seven years. "Of all the time I have lived in this country, I have never seen so much snow here!"

FinMin rejects EXIM Bank's budget draft for 1999

Metalworkers blast rising living costs

Despite heavy snowfall, about 2,500 metal workers and their supporters held an angry protest in Bratislava February 12 to denounce the economic policy of the government. Their main complaint was that the government is trying to solve its unfavorable economic situation to the detriment of citizens by increasing the cost of living.The rally, which brought together workers from ailing machinery companies across Slovakia, gathered in front of the building of the Employers Association and then moved to the Government Office. It was organized by the KOVO metalworkers' union, the biggest trade union organization in the Slovak Trade Unions Confederation (KOZ), under the slogan "For Jobs, Wages and the Rights of Employees."