Archive of articles - May 1999

Tesla Stropkov to lay off 150 employees

New Faces/Departures

SDK seeks stability through bargain

The deeply divided Slovak Democratic Coalition (SDK), the largest party in the nation's coalition government, has come up with a plan to increase both its internal stability and its influence on the domestic political stage. SDK officials say disagreement over who to support in the country's presidential elections, as well as over how to solve Slovakia's economic predicament, have shaken the party to its core.The agreement, dubbed the "Stability Pact," is set to be debated and approved at the SDK's June 20 national congress. The pact attempts to calm tensions between the SDK and its five mother parties - the right wing Christian Democratic Movement (KDH), the liberal Democratic Union (DÚ), the free-market Democratic Party (DS), the socialist Slovak Social-Democratic Party (SDSS) and the leftist Slovak Green Party (SZS).

Chambers of Commerce join forces on investment

Representatives of the nine foreign Chambers of Commerce operating in Slovakia, representing over 500 foreign firms doing business here, are to meet on June 21 to prepare a shortlist of measures they feel would improve the business environment for small and medium-sized foreign investors.The list is to be submitted to the government, and chamber officials say they hope it will lead to a fruitful dialogue with cabinet ministers on topics as diverse as taxes, privatisation and bankruptcy law."We hope to present something that will help everyone," said Fabrizio Paoletti, general secretary of the Italian Chamber of Commerce. "The problems faced by Italian entrepreneurs are those faced by all foreign enterprises in Slovakia. We want to create a lobby for all foreign entrepreneurs."

Community Grapevine

British Chamber of Commerce wine and cheese eveningAlternative film festival in Pezinok

Cabinet moots new import surcharge

Stung into action by the nation's plunging currency and macroeconomic imbalances, the Slovak government announced it was discussing a new package of economic measures on May 20 that, it claimed, would rein in both Slovakia's current account balance deficit and runaway public sector deficit.The government is considering, among other things, reimposing an import surcharge that would stem the tide of imports into Slovakia as well as bolster the income side of the state budget. While state officials concede that the surcharge distorts trade and only postpones solution of the country's underlying industrial problems, they insist that the gravity of Slovakia's overall economic situation warrants such drastic steps.

New management elected at PNS press distributor

Slovak minister opposes govt VAT hike plans -paper

Slovakia's trade gap improving four months into 1999

Dutch UPC firm gets nod for Slovakia cable TV buy

Central bank to take ČSOB case to US court

The Slovak central bank said on May 26 it may approach the International Center for Settlement of Investment Disputes (ICSID) about the forthcoming privatisation of the majority Czech owned Československá Obchodní Banka (CSOB).Czech shareholders - mainly Czech state institutions - have refused to allow the Slovak central bank (NBS) to sell its 24% stake in ČSOB, citing a 17.1 billion Czech crown debt allegedly owed to ČSOB by a Slovak state debt collection agency, Slovenská Inkasná."From a legal standpoint, the sale of shares of ČSOB owned by the NBS is not connected at all with the relationship between ČSOB and Slovenská Inkasná... the NBS is considering whether to ask the ICSID to also deal with our ČSOB privatisation demands," Slovak central bank spokesman Ján Onda said.

Cabinet dissent over economic reforms: More SDĽ hypocrisy

The decline of the Slovak crown in mid-May had one very positive effect - it awakened the government from its trance and stung cabinet into launching long-awaited economic reforms. Incredibly, however, it now remains to be seen whether internal dissent within the government will again soften or slow down the latest package of measures.One would think that the recent steep and steady descent of the crown would be enough to convince cabinet members of the need both for new economic austerity measures as well as for public unity on the matter. But on May 24, Agriculture Minister Pavol Koncoš told the Sme newspaper that he would not support the government reforms - a VAT hike, price liberalisation and an import duty - announced on May 17. In typical ad hominem style, Koncoš produced a sum proving, he said, that raising VAT taxes from 6 to 12% would cost each citizen an additional 1,419 Slovak crowns per year in food bills, or 118 crowns ($3) per month. He couldn't support the tax hike, he said, because it would take food out of the mouths of ordinary Slovaks.

Kelt: Trendy new pub recalls Bronze Age

Have you been desperately seeking the meeting place of Bratislava 'trendies' where you can select from a beer menu of Kelt, Kelt or Kelt? Or are you looking for a place to groove along with Boy George's greatest hits while sitting under abstract nouveau Celtic shields which harken back to the Bronze Age? If you answer 'yes' to either question, then Bratislava's newest pub - Kelt on Hviezdoslovovo Námestie - is the place for you.Opened on May 13, Kelt was designed in memory of the peoples inhabiting much of Europe and Asia Minor during Roman times. The culture of the Celts developed during the Bronze Age around the upper Danube and reached its climax in the first century BC before the region was overrun by various Germanic races.The new owners of Kelt clearly hope their new establishment will be overrun by customers. And on an average night, one gets the feeling they may succeed in their mission.

Moody's confirms negative Slovak ratings

In its annual report on the country, Moody's Investors Service explains the negative outlook for Slovakia's country ceilings, citing "a host of domestic problems, significant short-term debt, and a more volatile international environment."Slovakia's country ceiling for foreign currency bonds and notes is at Ba1, and the ceiling for foreign currency bank deposits at is Ba2. Local currency bonds are rated at Baa2.The consistently high fiscal and current account deficits of the last two years have been increasingly financed by foreign (especially, short-term) borrowing. The debt service burden has increased, and the interest rate differential has forced firms and banks to finance their operations and investment needs abroad, according to Moody's.

SDĽ imperils cabinet stability

If the government hoped that direct presidential elections would improve Slovakia's political stability and international credibility, these hopes have been dimmed by the recent misbehaviour of one of the ruling coalition's strongest members - the former communist SDĽ party.SDĽ party members have spoken out in the past week - against their Hungarian coalition partners, against the government's planned economic reforms, against each other - and while their government colleagues publicly maintain the pretense of unity, political professionals say that tensions within the cabinet are at an all-time high.

Around Slovakia

Foreign investor jailed for damaged passportGreenpeace hold German embassy balconyPub crawler drownsBrutal murder shocks nationHalušky champions crownedSlovan wins Mars Superliga title

VSŽ Board of Directors now has six members

Cabinet amends law on bearer shares

Unemployment in Slovakia down 0.3% to 17.4% in April