Summary of economic news released on Monday, February 26:
Demand for State Housing Support Exceeds 30 Pct. of Approved Budget
Total value of applications for housing support from the State Housing Development Fund (SFRB) as of February 15 exceeded 30.3 percent of the annual budget. While the SFRB budget for 2007 amounts to SKK 3.896 billion, the value of 444 applications totaled SKK 1.182 billion. Of this, the SFRB approved 77 applications amounting to SKK 111.37 million. Financial support, which applicants have already in their bank accounts, is almost SKK 4 million, according to data published by the SFRB.
Samsung to Decide by the End of March on Site for its European Plant
The South Korean giant Samsung should make its definitive decision on the placement of its about SKK 16 billion investment by the end of March. Jana Murinova from the Slovak Investment and Trade Development Agency (SARIO) said there are no fresh news about the Samsung investment. The company however promised that it will say its final word by the end of March. Media informed that the South Korean company has shortlisted Slovakia and Hungary for the investment.
Czech Agrofert Acquires 1.75 Pct. Hydina Cifer Shares in Takeover Bid
The Prague-based Agrofert Holding, a.s., a member of supranational group Agrofert Holding, has bought in a mandatory takeover bid 3,143 shares of Slovak poultry-processing company Hydina, a.s., Cifer. This represents 1.75 percent of the poultry processor's share capital. Since the takeover price was set at SKK 444, Agrofert Holding spent almost SKK 1.4 million to buy this package of shares. Agrofert Holding was obliged to announce a mandatory takeover bid after it acquired a 78.02-percent share in Hydina's share capital as of August 30, 2006. According to information published by Hydina Cifer, the takeover bid lasted from December 21 to February 18.
Free Internet Nothing but Misleading Public, Claims APKT Association
The Association of Cable Television Providers (APKT) claims that building Internet networks from the money of all residents of towns and villages and promoting the free access to the Internet is nothing but misleading the public and potential customers and that it will in no way enable free Internet connections to residents, the association's president, Robert Tavoda, told SITA. Therefore, the association is concerned about the growing number of cases of the construction of metropolitan networks. According to the APKT, municipal budgets in the end will lack this money to secure basic needs that municipalities are supposed to secure as a priority. The association rejected unfair competition, which consists in a possibility to prefer and create more advantageous conditions for one market participant. Therefore, the APKT advises tax offices, the Slovak Telecommunications Office, the Supreme Audit Office, and the Slovak Antitrust Office to check the lawfulness and the appropriateness of ways of financing the construction and operation of metropolitan networks in individual towns.
Supreme Court Head Complains of Communication Problems with Minister
Supreme Court President Milan Karabin said on Monday that despite the Prime Minister's promise to provide financial aid, the necessary reconstruction of the Supreme Court's premises has not started yet due to communication problems with the building's administrator, Justice Minister Stefan Harabin. Mr. Karabin explained that reconstruction of one of the Supreme Court's hearing rooms into a multipurpose room, where judges could work with classified information, is very important. He informed that he asked for funds for this purpose already last year during the parliamentary debate on the state budget. In mid-January, Prime Minister Robert Fico promised to allocate financial aid from government's reserve. However, since at that time, there has been no progress since reconstruction works are subject to approval by the building's administrator. However, the Justice Ministry that serves as the building's administrator, has not reacted to an application to approve the reconstruction sent by the Supreme Court yet.
Air Traffic Controllers Reject Claims their Strike is Illegal
If striking air traffic controllers do not return to work by 8:00 on Tuesday, February 27, they will face a complaint in court challenging the legality of their strike. Transport Minister Lubomir Vazny said this at a press conference on Monday, February 26. The director general of state-run air traffic control company Letove Prevadzkove Sluzby (LPS), Roman Biro, announced this personally to the striking air traffic controllers on Monday afternoon. The transport minister considers the strike to be illegal and sees wage questions behind the official requests of the air traffic controllers for safety improvement and the ousting of Mr. Biro.
Prime Minister Negotiates Slovakia's Electricity Import from Ukraine
Slovakia should begin importing electric energy from Ukraine. Slovak and Ukrainian Prime Ministers, Robert Fico and Viktor Yanukovich (respectively) agreed on this on Monday in Kiev. The Slovak Prime Minister's spokesperson Silvia Glendova told SITA that the technical aspects of this political agreement should be solved soon. "Thanks to the previous government's decisions, Slovakia is becoming dependent on import of electric energy and the agreement with Ukraine is of strategic importance for Slovakia," stated Mr. Fico.
CSA Manages to Keep Regular Flights to Slovakia Despite a Strike
Czech airlines Ceske Aerolinie (CSA) manages to maintain regular flights to Slovakia in spite of the strike of Slovak air traffic controllers, who have not been working for already five days. "Most CSA flights to Slovakia are on time," said CSA spokesperson Daniela Hupakova. The airliner had only to cancel two flights from Prague to Sliac. The routes of flights that use Slovak air space only for overflights are diverted away from Slovakia during the strike of the air traffic controllers.
MONEY MARKET: Quiet Trading at Beginning of Week
A quiet trading atmosphere prevailed on the interbank market at the beginning of the week. CSOB dealer Milos Labaj stated that mostly shorter deposits were traded as banks strive to replenish the February minimum reserve requirement. They deposited SKK 36.055 billion in their reserve accounts in the National Bank of Slovakia (NBS) on Monday meeting the February requirement on a cumulative basis at 94.65 percent. Banks still have two days and it seems that they will meet the requirement without difficulty, Mr. Labaj commented.
Wages in ZSSK Slovensko Railway Company Up at Least 5 Pct. this Year
The new collective agreement in railway transport company Zeleznicna Spolocnost Slovensko, a.s., (ZSSK Slovensko), guarantees the average monthly wage for employees to increase five percent this year, which is by SKK 1,059 compared with wages in 2006. ZSSK Slovensko director general Milan Chupek and leaders of trade union organizations in the company signed the collective agreement for 2007 on Monday. In line with the agreement, wages can go up by an additional 0.8 percent this year in case that ZSSK Slovensko meets the planned financial results. The average monthly wage in ZSSK Slovensko should amount to SKK 22,245 this year, the company spokesman Milos Cikovsky told SITA on Monday.
STOCK MARKET: No Shares out of SAX Base Titles Traded on Monday
The Bratislava Stock Exchange (BCPB) opened this week with lackluster trading. No shares out of SAX base titles were transferred on the stock exchange floor. Therefore, the value of Slovakia's official SAX share index remained at 412.87 points. Turnover on the Bratislava Stock Exchange (BCPB) declined from SKK 266.6 million on Friday to SKK 117.748 million on Monday with as little as SKK 2.854 million in share trading.
FOREX MARKET: Crown Slightly Weakens to 34.40/34.45 SKK/EUR
The Slovak currency moderately weakened at the beginning of the week. Tatra Banka's Boris Somorovsky commented that the crown's exchange rate against the euro initially climbed from the opening 34.37 /34.41 SKK/EUR to 34.46/34.50 SKK/EUR. However, it later partially recovered and the exchange rate stood at 34.40/34.45 SKK/EUR before the close of trading. Mr. Somorovsky explained that behind the fluctuations of the crown's exchange rate were foreign banks.