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ECONOMIC BRIEFS

Fitch IBCA downgrades forex rating

Fitch IBCA, the international rating agency, on October 7 placed Slovakia's 'BBB-' long-term foreign currency rating on RatingAlert negative pending a review of recent political and economic developments. The 'A-' local currency rating is also subject to the RatingAlert announcement.

The agency recognised that the recent elections are likely to bring to power a new government in a position to improve relations with the international community and return Slovakia into the mainstream of the EU accession process.

The recent devaluation of the crown will aid external adjustment but cannot carry the entire burden, said the agency. In the absence of an accompanying fiscal adjustment package, Slovakia risks being forced into a severe recession as a loss of confidence ends the availability of external finances.

The agency added that appropriate action could allay the risk of a foreign exchange crisis in the short-term. However, this risk would inevitably emerge again later unless the authorities could re-inject impetus into the process of structural reform.

Top stories

Kysuce highway stalled due to missing money

Money is missing to finish the section of highway between Žilina and Poland, stopping the completion of the D3 highway project.

Road-blocking protest in Povina, Kysuce, demanding completion of highway bypass - February 16.

Slovak film won Generation Kplus section at Berlinale

The film Little Harbour that won the Crystal Bear – beating movies from many other countries - is the work of (mostly) Slovak women.

Director of Little Harbour, Iveta Grófová, with the Cristal Bear

State insulation falls behind expectations, ministry widens support

Only 134 homeowners in the first round and 62 in the second applied for a subsidy via the insulation programme.

Only 134 homeowners in the first round and 62 in the second applied for a subsidy via the state insulation programme. Illustration stock photo

US philosopher with Slovak roots, Michael Novak, dies

The man who advised politicians and even presidents Gerald Ford and James Carter died on February 17, aged 83.

Michael Novak