Finances and Advisory, page 10
Investment and taxes in Slovakia
Banks not closing branches
BANKS in Slovakia continue to open new branches despite an increasing number of clients using internet banking. This trend in Slovakia runs contrary to the results of a study by consultancy firm Bain & Company, forecasting that banks in the European Union will close 40 percent of their branch offices, the Sme daily wrote on April 22.
Credit registers dictate loan conditions
CREDIT registers collect information about the payment history and discipline of borrowers and help banks assess the creditworthiness of loan applicants. Applicants can benefit from the registers too, as those with a good credit history and discipline have increased chances of getting a loan, and at a better rate.
Banking sector up
THE SLOVAK banking sector increased its profitability in 2013 and further improved its capital adequacy in 2013, with banks doing well thanks especially to sound growth in retail loans, which translated into a boost in net interest income. The National Bank of Slovakia (NBS) wrote this in its analysis of the Slovak financial sector for 2013, the TASR newswire reported.
Payments go mobile
THOUGH the technology to use mobile devices for making payments developed quickly, various complications have prevented it from really taking off. Near Field Communication (NFC) technology offers a user-friendly solution to the mobile payment hang-up, but requires coordination between banks and mobile operators, and infrastructure in shops. Yet, with Slovakia considered the European leader in adopting innovative solutions, NFC mobile payments may soon become routine.
Slovaks borrowed €20 billion
SLOVAKS borrowed a total of €19.62 billion from banks by the end of 2013. Based on the statistics of the National Bank of Slovakia, in an annual comparison this is an increase of 9.9 percent. Since the end of 2008, loans to households increased by 66.6 percent, up from €11.78 billion. Slovaks’ appetite for loans is growing every year, although the growth has slowed somewhat, the SITA newswire wrote on January 30.
Payment discipline varies
IN SLOVAKIA’S small, open economy, the payment discipline of companies is affected by global trends and varies according to sector. While some market watchers see no significant changes in firms’ payment discipline, others have said the situation is worsening and look to the future with a twinge of pessimism.
Organisations and institutions in the financial sector
Finance MinistryFinance Minister: Peter Kažimírwww.finance.gov.sk
P2P loans are an alternative to banks
NEW TECHNOLOGIES and the internet bring new alternatives to the financial sector. One is collective lending, also known as peer-to-peer (P2P) lending, which is now making its way into Slovakia. The Finance Ministry, however, warns that collective lending in Slovakia remains outside the supervision of the National Bank of Slovakia (NBS).
EIB supports Slovak forestry sector
THE EUROPEAN Investment Bank (EIB) is lending €120 million to finance projects contributing to forestation, improved forest protection and management, and the upgrading of agricultural infrastructure in rural Slovakia, the EIB wrote in its March 3 press release.
Slovaks’ bank savings at €26 billion
NON-STATE deposits in Slovak banks increased by 3 percent to €26 billion over 2013. More than one half of the total volume of money deposited in banks by ordinary people was in term accounts, Prima Banka reported based on data provided by the National Bank of Slovakia, the TASR newswire wrote in February.
NBS ends SKK coin exchange
THE NATIONAL Bank of Slovakia (NBS) oversaw a total of 766 exchanges of former Slovak koruna coins on January 2, which was set as the deadline for the currency exchange carried out by the NBS, the TASR newswire reported in early January.
More Slovaks file for personal bankruptcy
THE NUMBER of Slovaks filing for personal bankruptcy set a new record in 2013 and is expected to rise even more this year, yet fewer people are taking advantage of this option than in neighbouring countries. Experts and market watchers say excessively demanding laws are behind the low numbers, but the Justice Ministry is working on changes to ease the personal bankruptcy rules.
Slower growth in interest in tax haven
SLOVAK companies with an owner seated in a tax haven numbered 3,853 at the end of 2013. While this represents an annual increase by 5.68 percent, or 207 companies, the interest of Slovak businesses in relocating decreased moderately, as in 2012 this was 553 companies more than in 2011. Consultancy firm Bisnode ascribes this to the pressure of the European Union and the US on tax havens, but also to legislative change in the Seychelles, once a popular tax heaven, the SITA newswire wrote in late January.
Slovakia combats tax evasion
WITH tax evasion in Slovakia prevalent enough to be considered a ‘national sport’, the Finance Ministry devised a three-phase action plan in 2012 to combat the problem. Recent figures indicate that the plan, whose measures have been implemented gradually, is starting to bear fruit.
Tax revenue exceeds plans
SLOVAKIA’S tax revenue reached €9.14 billion in 2013, which was better than expected, exceeding the plan by 2.51 percent, or €228 million, the SITA newswire wrote. Total tax and non-tax revenue of the state budget amounted to €9.45 billion, according to the Financial Directorate.
Easier access to business partners' finance data
BUSINESSES have a new tool for checking on current and potential business partners: the online registry of financial statements. In addition to providing useful data, the registry makes doing business easier by reducing administrative burdens. While some fear that publishing financial statements could violate trade secrets and give their competition an unfair advantage, experts say this is not the case.
Special tax on trading with tax haven
THE STATE has imposed a special tax on trading of Slovak companies with tax havens. Within eight large tax-related changes adopted by parliament in late 2013, the state increased the common tax rate of 19 percent to 35 percent on payments of companies with offshore accounts, the online edition of the Trend weekly reported in early January.
Institutions in the tax and audit field in Slovakia
-Finance Ministry, www.finance.gov.skFinance Minister: Peter Kažimír
Waiting to assess the tax license effect
TAX licenses are the most discussed tax changes adopted last year, and while their introduction was accompanied by a 1-percent reduction of the corporate income tax to 22 percent, the corporate and tax sectors continue to criticise the changes in this and other policies.
Card fees increase at some banks
SEVERAL banks are increasing cashless payment fees, while Zuno bank is introducing a new fee for expedited issuance of a bank card.
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