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KIA disappointed by rejection of state incentives for suppliers

KOREAN carmaker KIA is disappointed with the Slovak government’s decision to reject state incentives to its suppliers, company spokesman Dušan Dvořák announced yesterday.

According to Dvořák, Slovak Finance Minister Ivan Mikloš, while serving as acting Economy Minister for a short time following the departure of Pavol Rusko, told KIA representatives that all pledges concerning state assistance to suppliers would be kept.

However, Finance Ministry spokesman Peter Papanek said: “It is not true that Minister Mikloš, while he was acting economy minister, made promises on any investment incentives for suppliers”.

“The minister only held talks directly with the KIA carmaker about investment incentives for the parent company," said Papanek.

Rusko promised incentives totaling Sk663.6 million (€17.7 million) to KIA suppliers but did so without the cabinet’s consent, according to current Economy Minister Jirko Malchárek.

The government therefore decided to reject the requested incentives. Another reason is that under Slovakia’s new rules on incentives, KIA suppliers are investing in an area that does not entitle investors to receive state aid.

KIA argues, however, that the “Slovak government must take full responsibility for all the acts of its members,” according to the Hospodárske noviny business daily.

Compiled by Martina Jurinová from press reports
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