Spectator on facebook

Spectator on facebook

Moody's revises downward its assessment of Slovakia’s 2009 GDP

Moody's Investors Service said on July 24 that it expects Slovakia's GDP to fall over this year after seeing the country's economic outlook sharply worsen within a short period of time, the TASR newswire reported, with the GDP decline affecting both corporations and households. “Even though Slovak banks were not hit by the first phase of the ongoing global economic crisis due to their limited exposure to crisis-distressed assets and to the bankrupt financial houses, the pressure on banks is building as the crisis spills over into the real economy (goods and services rather than the paper, financial economy),” said Gabriel Kadaši, chief analyst with Moody's, to TASR.

Moody's Investors Service said on July 24 that it expects Slovakia's GDP to fall over this year after seeing the country's economic outlook sharply worsen within a short period of time, the TASR newswire reported, with the GDP decline affecting both corporations and households.

“Even though Slovak banks were not hit by the first phase of the ongoing global economic crisis due to their limited exposure to crisis-distressed assets and to the bankrupt financial houses, the pressure on banks is building as the crisis spills over into the real economy (goods and services rather than the paper, financial economy),” said Gabriel Kadaši, chief analyst with Moody's, to TASR.

Kadaši pointed out that Moody's in May had downgraded its outlook on the banking sector from stable to negative only to be criticised by Slovakia’s central bank (NBS) for being controversial – failing to reflect current developments and the then condition of Slovakia.

“NBS finds it important to make it clear that Slovakia's banking sector is sound, profitable and sufficiently equipped with capital,” according to the statement from the central bank in May. TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

They reported corruption at the Foreign Ministry. Now they receive an award

The tenth year of the White Crow award, celebrating young people and activists who break prejudices and go against the tide.

White Crow award laureates

Blog: Slovakia’s time to shine is now

People may be able to recognise Slovakia’s neighbouring countries through associations with food, drinks, beautiful cities or well-known political events. But Slovakia remains very much "hidden".

Bratislava Castle

The day that changed the Tatra mountains for good Photo

The windstorm damaged 12,000 hectares of woods on November 19, 2004.

Tatras after the 2004 calamity

Smer follows a downward trend but may escape oblivion

What does the defeat in regional elections mean for the future of Slovakia’s strongest party?

“How could it be a fiasco when a political party wins most councillors among all parties?” asks PM Robert Fico.