Latest from The Slovak Spectator
Frequently asked questions
Bratislava
Slovakia News
Corruption & scandals Election Education Military
Roma community
Opinion
Business
Automotive Airlines Energy Highways Economics
Culture & lifestyle
Countrywide events History talks Cooking
Sport
Travel
Directory
Online Shop - All about Slovakia in English
Spectator Writers
Show all sections >
author
Ed Holt

List of author's articles, page 6

Bank report casts pall on IRB

A report submitted to cabinet August 15 showed that 52 out of 104 bad loans transferred from state bank IRB to hospital bank Slovenská konsolidačná (SKo) had been awarded non-transparently by IRB managers.The SKo report showed that the credits, some dating as far back as 1990, had been given without proper assessment of client solvency or the projects for which the credits were being sought. In some cases managers had violated internal rules by extending advantageous loans to certain clients.

New Securities Act savaged by dealers

Securities and stock traders have come out in force against a draft Act on Securities and Investment Services approved by the government August 15.The Act, if passed in its present form by parliament in September, will send a historically illiquid and virtually inactive stock market to its grave, they say."We were anticipating this law with great hopes of bringing a change to the way the [Slovak] securities market works. But the wording and provisions of this law, while adopting European norms, have not taken into account local circumstances," said Michal Hornák, head of the Association of Securities Traders.

SPP nears sell-off with past baggage

As the government readies itself to start the biggest privatisation in independent Slovakia's history, it has promised that despite delays and obstacles, the sale a 49% stake in Slovenský plynárenský priemysel (SPP), the leviathan of central Europe's gas market, is guaranteed to go through.The world's second largest gas distributor is the crown-jewel of the state's companies. The 90 billion cubic metres that flow through its pipes every year - two-thirds of the gas imported into western Europe - have brought rich revenues to successive Slovak governments.The sale of SPP is also seen as crucial to allowing the Slovak energy sector to compete in a liberalised European Union market (Slovakia hopes to join the EU in 2004), and will bring massive revenues to the state, possibly as much as $3 billion.

World Bank loan leaves reform questions

As the state was given the final seal of approval on a 200 million euro loan from the World Bank August 7, the institution's central European head, Roger Grawe, called recent Slovak economic changes "some of the strongest reforms in the region". Grawe added the extension of the loan would bring more much-needed investment to the country.The EFSAL (Enterprise and Financial Sector Assistance Loan) credit, which had first been discussed two years ago, is seen as one of the key agreements between Slovakia and the World Bank. The government says it is a way of ensuring important economic reforms are kept on track.Coupled with an IMF mission report released only a week earlier that gave a similar appraisal, the loan agreement has given the government's reforms the backing to date of two of the most important financial institutions in the world.

Ministry announces combined telecoms licence

Deputy Telecoms Minister Dušan Faktor announced August 12 that a combined package of a third licence for a GSM and UMTS mobile phone operator would be offered in a tender at the end of this year.A tender will be launched in the last quarter of the year, Faktor said, with the winner receiving the licences in the first quarter of 2002. The main criterion for selection of the winning bid will be price offered."Price will be the most important factor, but of course we will take into account other factors such as the experience of the interested providers," the deputy minister said. The ministry is expecting between one and two billion crowns for each licence, within many experts' estimates.

Airports head fired over dual role

Head of the Slovak Airports Authority (SSL) Juraj Mitka was sacked August 13 by the Transport Ministry over what it said was "a clear case of conflict of interest".Mitka, who had only days earlier resigned as a member of the supervisory board of air carrier SkyEurope, was delivered the news after being summoned to the ministry to explain his role in the firm."Apart from his position in the Airports Authority, Mr. Mitka also had a job with SkyEurope. This firm has asked for a licence to operate as an air carrier, and within that will have economic relationships [with the SSL]. It is a conflict of interest," a spokeswoman for the ministry told The Slovak Spectator August 15.However, SkyEurope executives have questioned the sacking, pointing out that Mitka had been a member of the firm's supervisory board for almost a year before the matter was brought up.

Steeled for anti-graft assault

When John Goodish finished speaking to 700 representatives of 360 US Steel Košice suppliers July 4, the head of the American steel giant had delivered a message loud and clear: There will be no bribery at US Steel Košice, and no bribery will be tolerated among its suppliers.The president of US Steel Košice had called the suppliers together after it was uncovered that both they and US Steel Košice employees had been involved in offering and receiving bribes. Two contracted partners had allegedly told the American firm that it would have to pay 25-40 million crowns if it wanted to do business with them.One US Steel Košice employee has already been laid off and six more are being investigated for breaking the firm's code of ethics a

SARIO summer of discontent waxes full

Head of state investment agency SARIO Alan Sitár resigned August 8, citing an "inability to fully undertake the organisation's planned activities". He said that financing problems, and a difference of opinion with the Economy Ministry, a key SARIO shareholder, over the agency's direction, had been behind the step-down.The resignation brought to a head a deepening conflict between the ministry and SARIO management, headed by Sitár, which had two weeks earlier seen Economy Minister Ľubomír Harach call for the removal of the agency's top executives."During the last year I tried to create an agency that was of the standard of those in other countries, such as the Czech Republic. The obstacles to the work of the agency, such as financing, our mandate, the creation of foreign delegations, were too great, and much of the agency's time was spent trying to solve external problems and little time on the important work of SARIO. I could not find a modus vivendi with the Economy Ministry in that time, and so I took this decision," Sitár told The Slovak Spectator August 8.

Government sees Sereď investment as sign of incentive success

Office supplies maker Imarco Slovakia, with the backing of Austrian capital, is close to finishing the first part of a potential one billion crown ($20 million) investment into the west Slovak town of Sered'.As managers at Imarco predicted that the first of a possible seven production halls would begin turning out goods this month, the government was touting the investment as a sign that its incentives packages for investors were proving attractive.Imarco has agreed that the incentives were key. Jozef Mihál, the firm's legal representative, said that while the decision to build in Sered' over 14 other possible sites in Europe had been influenced by the town's proximity to Austria (Sered' is less than 60 kilometres from Austria), the primary draw had been the tax breaks and other business perks the government offers investors.

Mixed results as Slovak bank privatisation continues

Efforts to privatise two banks still in state hands saw mixed results July 20 as the sale of a 60% stake in Slovakia's smallest bank faltered for a second time, while press reports suggested a successful sell-off of the larger Investičná a rozvojová banka (IRB) was drawing closer.The central bank announced that it had refused three interested parties - J&T Finance Group, Slávia Capital and 1. Paroplavebna brokerage company - the right to carry out an audit of Banka Slovakia. It said that none of the candidates had experience working in the Slovak banking sector, and cast doubt on the recent financial performance and structure of J&T Group in particular.A previous tender for the sale of a 60% share in the bank failed in February when an interested consortium pulled out of talks after failing to agree terms.

Investors call on government to put promises into practice

The top 15 foreign investors in Slovakia have told the government that while it has made great progress in passing laws to create a positive business climate for investors, it must make a greater effort to ensure those laws function properly in practice, especially at local government level.Speaking after a round-table meeting with the heads of the biggest investors in Slovakia, Prime Minister Mikuláš Dzurinda said July 9 that "while there is general satisfaction among investors with the steps the government has taken [to encourage investment], what I have heard today is that we must ensure that these are put into practice"."After agreements reached with the central government, investors find it difficult to fulfil these agreements with [local public administration] offices," he added.

Suspected Irish dissidents arrested by Slovak secret service

Britain is expected to request the extradition of three men suspected of links to the Real IRA, a terrorist splinter group from the IRA, after their arrest and detention in Slovakia July 6.The three, two of whom have been named as Michael McDonald and Declan Rafferty, were arrested in the west Slovak town of Piešťany after what was believed to have been a joint surveillance operation involving anti-terrorist forces from Slovakia, Britain and other central and east European states. The third man has yet to be named.The men, detained under warrants issued under Britain's Prevention of Terrorism Act, are thought to have been involved in plans to buy weapons for the terrorist organisation, probably from Croatia, and then ship them to the Irish Republic through central Europe. However, Slovak authorities have refused to comment on the case, other than to confirm that three men are being held.

Politics, yields hurting bonds

A market appetite for mid-term government securities which has been waning since the start of the year hit a new low July 2 with the failure of an auction of state bonds with a two year maturity, dealers said.The issue, which attracted only 140 million crowns ($2.8 million) in bids, while the ministry had been looking to raise two billion crowns, came only a week after an auction of similar maturity bonds had pulled in bids far below government expectations: 680 million crowns against a planned one billion.In both cases the government - which uses its securities to finance state debt, including the redemption of previously issued bonds - set the papers' interest rates at just below 8%. The Finance Ministry has said that it will not offer anything higher, fearing the consequences to its financing plans if it has to pay back higher yields.

Slovakia moves into EU lead pack

Slovakia June 27 became only the second of 12 European Union candidate countries to close pre-accession legislative 'chapters' on free movement of capital and labour after negotiations in Stockholm with Sweden, the outgoing EU president country.The talks brought to 19 the number of chapters Slovakia has closed in the EU's acquis communautaire (a document laying out the legislative changes new members have to make in 29 areas), while all 10 remaining chapters have now been opened. Chief EU negotiator for Slovakia Ján Figeľ said that the country was now firmly among the leading candidates for entry into the Union."This confirms that we have reached a level where we can be compared with other [candidate] countries," he said.

Refugee camps under strain

On June 12, eight days before World Refugee Day, Slovak border police launched a river search for 20 Indian refugees who had attempted to cross the Morava river into the Czech Republic.Two days later the search was called off. Three people had been found alive, the rest were presumed drowned.Brought from India via Moscow to Slovakia, each of the 20 had paid $8,000 to a group of body-smugglers promising to ferry them to the West. But outside Bratislava, the group was abandoned by the smugglers, and chose to risk the waters.

State begins mulling over bids for VÚB

The steering committee for the sale of a 69% stake in Slovakia's second largest bank, Všeobecná úverová banka (VÚB), June 13 received offers from the only two bidders, Italy's IntesaBci and French bank Societe Generale.The Finance Ministry's Bank Privatisation Unit said before the bids were offered that it believed VÚB could attract a similar price to that offered for Slovakia's largest bank, Slovenská sporiteľňa (SLSP), by Austria's Erste Bank in December.Erste paid 18 billion crowns for an 87% stake in the finance house, meaning the offer for the VÚB stake would be around 14 billion crowns.

Irish vote dents Slovak EU hopes

Last week's rejection by the Irish electorate of the European Union's Nice treaty - an agreement which gives a blueprint for the union's enlargement eastward - has thrown doubt on the 15-member bloc's plans for expansion.A June 8 referendum held in the Irish Republic resulted in an unexpected rejection of the treaty's ratification. Signed in Nice at the end of last year, the agreement won the support of voters in only two of Ireland's 41 constituencies, with the overall vote swinging 54%-46% against the treaty.Despite a promise from French President Jacques Chirac June 11 that the Nice treaty would be enforced regardless of the Irish vote, many senior EU figures have admitted that hopes entertained by central European states (including Slovakia) of entering the union within the next few years had been dealt a serious blow.

Czech BSE case triggers alarms

Slovak authorities imposed a blanket ban on the import and transit of cattle, beef, and beef embryo products from the Czech Republic after officials in Prague June 8 confirmed the first case of BSE (Bovine Spongiform Encephalopathy) disease outside western Europe.The Slovak move was in line with similar bans on imports of Czech meat products by many EU states following the news from Prague.A ban was also put on the distribution and sale of all Czech foodstuffs containing bovine products in Slovakia. Inspections of retail outlets selling or storing foodstuffs, as well as of school and hospital canteens, were also ordered.

All Slovak banks great and small

Following a failure to sell Slovakia's smallest bank, Banka Slovakia, in a tender earlier this year, the state has found three entities ready to step into the Slovak banking sector.Brokerage house Slávia Capital, J & T Finance Group, and stock broker 1. Paroplavebná have confirmed that they are interested in buying the 60% share in the finance house on offer from the state.However, two of the interested parties, Slávia and J & T Finance, the latter of which backed out of a tender for the bank last year, have made it clear that they have more interest in the licence available than the future of the finance house.

Treading the EU's investment line

The incentives offered by the government to convince foreign investors to settle in Slovakia, including tax holidays and exemptions from environment laws, have drawn the ire of two groups - the European Union and domestic Slovak companies. The former worry that generous tax breaks could lure investors away from EU countries. The latter have complained they are being disadvantaged in a Pyrrhic war among central Europe's developing economies for foreign investment dollars.The debate flared anew last month over a Slovak government promise to grant 10 year tax holidays to steel giant US Steel Košice.If the Slovak government gives the green light to the American firm's request for a five year 100% tax break, followed by a five year 50% tax break, it may be found in violation of Slovak government-approved legislation on financial assistance provided by the state to private firms.

SkryťTurn off ads
SkryťTurn off ads
SkryťTurn off ads
SkryťTurn off ads
RSS Newsletter

© Copyright 2015-2024 | The Rock, s.r.o., Petit Press, a.s.

consent-revoke-trigger
SkryťClose ad