Archive of articles - August 2000, page 2
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Consumers beginning to re-examine savings strategies
Banks have been focusing their activities on state papers in recent years. Huge government expenditures pushed up interest rates on T-bonds and T-bills to abnormal levels, providing valuable and risk-free investment for banks. Banks had little problem in deciding where to put their funds. But the euphoria has now disappeared.A restructuring of loan portfolios at domestic banks and weak enforcement of creditors' rights fuelled a credit crunch, while deep cuts in government expenditures resulted in a low supply of T-bonds and T-bills. A liquidity surplus in the banking sector caused a sharp fall in interest rates and a lack of issuing activity from the Finance Ministry allowed the central bank to take full control over interest rate developments in 1H00.A significant drop in interest rates on deposits is forcing bank clients to re-examine the way they save their money. Rolling over short-term time deposits had been the most popular tool, and clients enjoyed high yields on this. Three month (3M) deposits increased 84% in 1999, and together with 1M deposits represented roughly half of total time deposits in June.
Moravcová comes into her own
"I always wanted to meet a world famous swimmer," says Darina Moravcová, mother of one of the world's leading swimmers and possibly Slovakia's best hope for a gold medal at the Sydney Olympics, Martina Moravcová."Now I see a world champion almost every day and somehow I've gotten used to it. Martina grew up before my eyes. I was the first person who trained her, but it never entered my mind that one day she would be swimming at the Olympics!"Twenty-four year-old Moravcová, at 5'8"and 132 pounds, has been described as one of the world's toughest competitors in the pool. Her record to date bears this out: she won 10 individual titles at the NCAA championships between 1996 and 1999, second best all-time for female swimmers in the series. Specialising in freestyle, individual medley and butterfly, Moravcová holds three European records and is a former world record holder. She has been voted Slovak Athlete of the Year three times.
Decoding Čarnogurský: What does he know?
Justice Minister Ján Čarnogurský has refused to contemplate changes in the law to allow Slovak homosexuals to marry.The problem is that Slovakia has applied to join the European Union, and there is no room in the EU for any country, however small, which hasn't granted full emancipation and human rights to so-called gays. Does Mr. Čarnogurský know something which the rest of us don't - although one or two of us have our suspicions - which is that this country will never join the Union because the French and Germans, and possibly the Austrians, can't stand the idea of job competition from the untermenschen? If that is indeed the case, the Justice Minister and everyone else can continue to sound off with a wide range of illiberal views and no-one outside Slovakia will give a toss.The wonder is that there are any homosexuals in Slovakia at all. The ladies are so wondrously put together here that there can't possibly be any solid reason for a man to look at another man with lust in his mind.
Bratislava Mayor Moravčík: The soft-sell politician
Arriving two minutes late to an important Monday morning meeting, Bratislava Mayor Jozef Moravčík creeps through the entrance hall at the Úrad vlády (Office of Government) and leans over one of the vacant security desks, a humbly quizzical look on his face. The former Prime Minister of Slovakia is unsure where to go, but is reluctant to interrupt the guards by asking directions.When they notice the mayor, one smiles confidently and mumbles a few words. "Oh, the new building," replies Moravčík. A polite thank you, and he strides off. A group of ornery representatives from Bratislava's 17 districts await, but Moravčík - tall, slightly hunched, a touch ungainly - doesn't seem like a politician girded for battle. His manner is more suggestive of a man looking for a Coke machine.
Slovaks hungry for IT skills
To hear Marián Velšic tell it, Slovaks have enormous potential for mastering information technology, and could be much further ahead if the government were more aggressive in promoting IT skills, and if computers and web hookups were not relatively so expensive.Velšic, a research associate at the Bratislava think tank Institute for Public Affairs, surveyed 1,805 Slovak adults last March, discovering that almost two-thirds of the population was willing to acquire new IT knowledge, and that about half of his respondents had experience with basic skills such as using a computer or a mobile telephone (see chart, this page)."These numbers are very positive, especially compared to data on the political and economic knowledge our citizens have," said Velšic. "Many Slovaks have basic experience with computers and mobiles, even though a computer still costs three months' average wage, and I was pleasantly surprised to find that the IT skills gap between urban and rural dwellers was not as great as I had expected. Given that IT growth didn't begin here until 1989, I think we've done pretty well in a single decade.
Old Town Notes: A more glamorous look for Poštová
The reconstruction of Poštová ulica (Post Street) has recently been heralded as the newest investment project in the Old Town district. After several years of effort revitalising the historic core of the city, city council is gradually switching its attention to areas beyond the original city walls.Poštová, which connects SNP Square with Hodžovo Square and the Presidential Palace, has been a love affair for Old Town officials for a couple of years. The first signs that officials were planning to do something with the area were evidenced in the reconstruction of the nearby Royko Passage, which runs south off Obchodná Street. It has always been a busy street, but at the same time somewhat overlooked. In recent years it has merely served pedestrians as a fast connection to the city centre.In general, Poštová has poor quality pavement. Furthermore, its northern part alongside the Forum Hotel has a series of unattractive urban structures. Opposite the hotel itself there is an evident lack of any urban structure at all, and instead a small unkempt park has become a favourite place for the homeless and late-night party-goers.
Slovak tennis team hardens game for Sydney in US
Although the 2000 Sydney Olympics tennis competitions will host a formidable collection of the world's elite, members of the Slovak contingent say that they will not be intimidated, and add that they have as good a shot at gold as anyone else."I've got the experience to go there and get that medal," said Slovakia's top tennis player, Karol Kučera, when asked of his chances by The Slovak Spectator on August 15. That day, as if backing up his words, he continued his recent hot spell when he roundly defeated Paul Harshanyi in the first round of the ATP Masters Tournament in Washington DC, 6:1, 6:0.Kučera also participated in the 1996 Atlanta Games, and has since maintained his spot as the country's top player, once holding the sixth spot in the ATP rankings. He has struggled this year, however, and has seen his ranking fall out of the top 25.
Top Pick: Blues Club - Concerted Slovak blues talent
Blues fans in Bratislava have a rare opportunity to see some of the country's most talented players on the stage all at once. Blues Club is a Slovak blues band consisting of musicians who are all wed to other projects, but occasionally get together to create music that is a treat for even the most seasoned blues ear.Established in 1998, the group plays slow, relaxed ballads, some soul, and of course the blues, all in their trademark laid-back style. Blues Club lyrics are written and sung by Juraj Turtev, the soul of the band with a lively and witty stage presence. Other core group members include harmonica player Erich Boboš Procházka (see review, page BCG I), vocalist Silvia Josifoska, Igor Sabo on drums and percussion, upright bassist Dušan Strapec, and guitarists Maťo Zajko and Stano Počkaj.Band members say that they were influenced by American legends such as Keb' Mo, Big Bill Broonzy, J.B. Lenoir, Sonny Terry and Brownie McGee, and Slovak Ján Litecký Šveda.
Business Briefs
Cabinet decides on allocation of ST sale moneyBanks ignore low yields in T-bill auction
Inflation down, NBS cautious on rate cut
Slovakia's corporate sector lending freeze showed signs of a thaw last week after central bank officials began dropping hints that an interest rate fall was on the cards.Following the release of encouraging inflation figures for last month, the senior director of the monetary policy department of the National Bank of Slovakia (NBS), Peter Ševčovič, said August 10 that the bank was leaning in the near future towards a 50 basis point cut on the one-day sterilisation rate, a benchmark for dealings between commercial banks and the NBS.Analysts say such a drop would eventually lead to a fall in prime lending rates at commercial banks, allowing companies access to cheaper loans. The companies, in turn, would see higher profits, which would then be reinvested in the economy.
Community Calendar
International Women's Club in BratislavaFrench Institute
Letters to the editor
Slovak cuisine not for the faint heartedCars a menace in the Old Town
Review: Exceptional blues talent of a Slovak Buddhist
Erich "Boboš" Procházka is often the largest man on stage. He is often also the least musical-looking musician. At six feet two inches and broad as the day is long, Boboš looks more like a throwback rugby professional than one of Europe's best harmonica players. He even dresses all in black, heightening the tough-guy impression. And in this part of the world, the abscence of hair on his prominent skull leads people to make quick assumptions."It's funny," he said in a recent intereview with The Slovak Spectator. "It's mostly skinheads that mistake me for a skinhead. One time, a skin came and sat next to me at a bus stop where there were four or five gypsies around. He and his friends had lots of ideas, then they noticed I was reading a book with a dark-skinned person on the cover. I looked up and smiled at the skinhead. He was very surprised."
Cabinet urges recall of Chief Justice
The campaign to remove Supreme Court Chief Justice Štefan Harabin from his post heated up on August 16 when the cabinet proposed his recall. Harabin, critics say, has damaged the reputation of the Slovak judiciary through his controversial behaviour and his decisions since his appointment in February 1998.Harabin, on the other hand, says that he is being persecuted by the current coalition because he was appointed to his post by the opposition far-right Slovak National Party (SNS) during the last government of former Prime Minister Vladimír Mečiar. He added that the forces which oppose him prefer a Supreme Court chief who is at the beck and call of politicians, the type of judge he maintains he is not.
'Born-again' president returns
It was a gaunt and frail-looking President Rudolf Schuster who returned to Slovakia from an Austrian medical clinic on August 15, but one who made no bones about his relief at finally coming home."I was returned to the world, and I still have work to do," he said after returning to his native Košice on August 15.Schuster, who in June suffered a life-threatening perforated colon which was mishandled by Slovak doctors, spent 48 days recovering at a hospital in Innsbruck, Austria and later at a health spa in Igles. He flew back first to Bratislava, kissing his hand and touching it to the tarmac symbolically as he stepped off the plane, and clutching a 'birth certificate' issued by his Innsbruck doctors in keeping with Schuster's belief that he had been "born again" in Austria.
Devín banka gets reprieve, meets MRR
Ailing finance house Devín banka, which only two months ago was pulled back from the brink of a dramatic collapse, is set to get back on its feet after reaching an agreement with the Finance Ministry over Russian debt.The August 10 signing of a mandate between the Finance Ministry and the bank, which gives Devín the task of recovering $60 million worth of Russian debt to Slovakia, finally allowed the bank to meet minimum reserve requirements (MRR) August 15 - a feat it had failed to achieve in the last five of the central bank's regular two week monitoring periods.Board members at the troubled bank had originally said that the MRR would not be met before the end of August, but after meeting the requirement mid-month said it was sure sign of the bank's recovery.
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