Economic news released by SITA on Tuesday, January 2
Matador Omsksina with 2006 Revenues of SKK 2.169 Bln.
Slovak-Russian joint venture Matador Omsksina (M-Omsksina), which is involved in tire production and belongs to Matador group, expects its turnover for 2006 to reach SKK 2.169 billion. Matador vice-president Miroslav Rosina informed that the turnover should increase by 23.1 percent in comparison with the previous year. In 2006 the company is expected to produce 2.748 million tires, which is up by 3.2 percent. However, in 2007 Matador Omsksina expects the output to reach 3.26 million tires. The Russian joint venture underwent a successful restructuring last year.
Antitrust Office Levies SKK 300 Mln. Fine on Slovnaft Refiner
The Slovak Antitrust Office (PMU) levied a SKK 300 million fine on Bratislava-based crude oil refiner Slovnaft at the very beginning of the year. The PMU came to the conclusion that Slovnaft misused its dominant position by its discount policy toward customers. The PMU's decision is not final, since Slovnaft can appeal against it within fifteen days.
Chemolak's Last Year Sales to Reach SKK 886.9 Mln.
Coating materials producer Chemolak, a.s., Smolenice, expects to close last year with a taxed profit of almost SKK 3.5 million. Chemolak's finance director Karol Melocik told SITA that sales should total SKK 886.9 million with local sales making up SKK 634.6 million and export sales SKK 252.3 million. The company should sell 12,558 tons of goods, of which 6,338 tons should be placed on the local market.
Last Year's State Budget Deficit was SKK 26 Bln. Lower than Expected
The state budget of the Slovak Republic ended last year with a deficit of nearly SKK 26 billion lower than projected in the state budget law. While a deficit of SKK 57.468 billion was projected in the approved budget for 2006, the deficit at the end of December was SKK 31.678 billion. The deficit was SKK 2 billion lower in comparison with the deficit in 2005. Higher than planned revenues, as well as not drawing of all budgeted expenditures were behind the lower deficit. Revenues reached SKK 291.977 billion and exceeded the budgeted level by 7.1 percent. State budget revenues grew by 12.9 percent y/y. Budgetary expenditures reached SKK 323.655 billion and they lagged behind the budgeted level 2 percent. State budget expenditures rose by 10.6 percent y/y.
Slovnaft Disagrees with Antitrust Office's Fine and will Appeal
Bratislava-based crude oil refiner Slovnaft disagrees with the decision of the Slovak Antitrust Office (PMU), which levied a SKK 300 million fine on it for a discriminatory behavior against some petrol and diesel wholesale customers. The refiner will appeal the verdict within a fifteen-day deadline, Slovnaft's spokesperson Kristina Felova told SITA.
Central Bank Rejects Some Bids in Regular Repo Tender
The National Bank of Slovakia (NBS) decided to reject a portion of bids in its regular two-week sterilization repo tender. The central bank wants thus to support its last week's direct intervention on the FOREX market against the sharp firming of the Slovak currency. The NBS Bank Board made the decision on Tuesday and applied it on the same day when it accepted SKK 133 billion out of the total bids of banks exceeding SKK 150 billion.
WSS Home Savings Bank Reports 11-Month Contracts for SKK 4.16 Bln.
Home savings bank Wustenrot Stavebna Sporitelna (WSS), a.s., concluded 27,681 new contracts with a target sum of SKK 4.16 billion for eleven months of last year. Compared with the same period of 2005, the number of new contracts decreased 5.5 percent while their volume increased approximately 8 percent y/y. WSS spokeswoman Daniela Vlckova explained that behind the moderately lower number of new deals could be more frequent use of family saving when several family members share one saving contract.
Minister Claims Pension System Consolidation is One of her Priorities
One of the new year's priorities of the Minister of Labor, Social Affairs and Family Viera Tomanova is consolidation of the pension system. Ms. Tomanova told SITA that she wants to remove unjust and discriminatory elements in relation to persons who receive old-age pensions. She also plans protection measures in relation to the capitalization pension pillar. She said that the government wants to enable that only people who can save for their old age pension in this pillar will remain the system.
TAM Asset Management Company Administered SKK 40.7 Bln. in 2006
Asset management company Tatra Asset Management (TAM) administered approximately SKK 40.7 billion in its funds by the end of last year, up 25 percent y/y. Vice chairman of the board of directors of TAM Jan Kovac evaluated last year's operations as extremely successful. He said net investments of investors were SKK 7.2 billion in TAM mutual funds over eleven months of last year. Mr. Kovac specified that total net sales on the market of mutual fund achieved SKK 2 billion. This number shows that most asset-management companies reported a decrease of assets in their funds, said Mr. Kovac.
MONEY MARKET: Central Bank Cut Banks' Bids by SKK 17 Bln.
Slovakia's money market saw lackluster trading at the beginning of the new year. Banking houses almost did not trade, and the only exception were transactions with the central bank. The central bank did not accept the all of the banks' bid amounting to SKK 150.351 billion and as a result only SKK 133.200 billion will be sterilized in two-week repo contracts with the central bank. The average yield in the new tender was 4.75 percent p.a., which represents also the maximum yield. The minimum yield was 0.05 percentage points lower.
FOREX MARKET: Crown Opens New Year at 34.400 SKK/EUR
During the first session this year, the Slovak crown moderately firmed. The currency strengthened from the opening 34.480/500 SKK/EUR to 34.320 SKK/EUR in the morning. However, at this level profit taking by investors began, said CSOB dealer Richard Brza, and the exchange rate got to 34.540 SKK/EUR, where it stayed until the close of Tuesday's trading.