Economic news released by SITA on Monday, January 15
Dairy Company Syraren Bel Plans Share Capital Hike in February
Shareholders of the dairy company Syraren Bel Slovensko should discuss an increase in the company's share capital at the February 15 general shareholder meeting. In the hike of the share capital the company plans to gain additional funds for further development of business activities. The share capital should be increased by SKK 600 million in a subscription of 600,000 new shares with par value of SKK 1,000. Shares should be issued in book-entry form.
Bratislava Airport Served 1.938 Mln. Passengers Last Year
M.R. Stefanik Airport in Bratislava served 1,938,000 passengers last year. Compared to 2005 this means a growth of 46 percent. The airport reported 120,600 passengers in December alone, which is an increase of 9 percent y/y. The number of passengers at Bratislava airport should exceed two million this year, when it expects to serve 2.4 million passengers, Ivana Paulinyova told SITA.
Transport Ministry Seeks New Board Members for ZSSK Slovensko
The Transport Ministry announced a job contest to fill vacancies on the board of directors in railway transport company Zeleznicna Spolocnost Slovensko, a.s. (ZSSK Slovensko) on Monday. According to information published by the ministry, applicants have ten days to express their interest in these posts. The Transport Ministry is searching for ZSSK Slovensko board members with university education with the transport, technical, economic, or law specialization. Applicants should have at least three years of managerial experience.
Slovakia's Crude Oil Stocks at Level before Disruption of Oil Flows
Crude oil stocks of the Slovak Republic are back at previous levels. Spokesman for the Economy Ministry Branislav Zvara said that the Russian Federation supplied 36,000 tons of crude oil on Saturday through the Druzhba pipeline. Slovakia could thus settle compensate the fifty hours of disrupted oil flows at the beginning of last week and complete its oil stocks to original levels. Already on Friday 37,000 tons of crude oil flew to Slovakia, of which 13,000 tons were destined for the Slovak Republic. The Czech Republic got the rest. The following supply on Saturday was all destined for Slovakia. On Sunday the Russian Federation sent 28,000 tons of crude oil through Druzhba and Slovakia took 21,000 tons.
Not all Health Service Providers to Get Contracts from Dovera Insurer
The health insurance company Dovera Zdravotna Poistovna, a.s., has started negotiations with medical and professional organizations on contract terms for the year 2007. Its spokesman Radoslav Bielka informed that within introductory talks at the turn of last year Dovera declared its aim to conclude contracts with health service providers based on principles of quality and effectiveness in all cases it will be possible taking into regard criteria of the minimum network and preservation of health services' accessibility. The company also wants to introduce a wider differentiation of prices for services according to their quality.
Ryanair Transported Over 450,000 Passengers from Bratislava in 2006
The biggest low-cost airline in Europe, Irish Ryanair transported already over half a million passengers from Bratislava Airport since its arrival in Slovakia in October 2005 until the end of 2006. While it transported 63,300 passengers during the first two months of its operation in Slovakia, the number of its clients in Slovakia climbed to 452,400 passengers over the whole year of 2006. Ryanair marketing director for Central Europe Tomasz Kulakowski informed about the company's results on Monday. Thus, the Irish airline has a significant share on last year's increase in the number of passengers that used the M.R. Stefanik Airport in Bratislava last year. In 2006, the airport reported by 611,100 passengers more than in 2005 and it served 1.938 million passengers in total.
MONEY MARKET: Trading Week Starts with High Liquidity Surplus
The Slovak money market entered a new trading week in a high liquidity surplus. The central bank in the last two sterilization repo tenders rejected a part of bank bids in order to block strengthening of the Slovak crown. Slovenska Sporitelna dealer Pavel Janosik told SITA that commercial banks deposited SKK 20.266 billion in their reserve accounts in the National Bank of Slovakia (NBS) on Monday, meeting the January minimum reserve requirement on a cumulative basis at 139.13 percent. Additional SKK 48.416 billion ended in the NBS in the overnight sterilization. A regular sterilization repo tender of the NBS will take place on Tuesday. The market is waiting whether the central bank will reject a part of bank bids for the third consecutive week, stated Mr. Janosik. The Slovak crown weakened above the level of 34.90 SKK/EUR on Monday. On Wednesday SKK 133.2 billion will return to the market through maturing repo contracts.
FOREX MARKET: Crown's Exchange Rate was More Volatile on Monday
On Monday morning, the Slovak crown initially weakened against the euro but it recovered its losses by the end of the trading session. The Slovak crown opened at 34.810/850 SKK/EUR in the morning and later the exchange rate briefly moved to 34.760/860 SKK/EUR. "It bounced back from this point and the Slovak currency weakened to 34.900/940 SKK/EUR," said Tatra Banka dealer Boris Somorovsky. At this point the situation changed again and the local currency firmed to the closing 34.780/820 SKK/EUR.
Trade Unions Welcome Government Plans to Revise the Labor Code
The Trade Unions Confederation of (KOZ) considers a planned revision to the Labor Code to be "the law of the year." Trade unions expect the revision to strengthen rights of employees. The law should take effect on July 1, informed KOZ vice president Vladimir Mojs. The KOZ expects the new law to define more clearly work on the basis of an employment contract, to prevent discrepancy between wage terms stipulated in a collective agreement and remuneration terms in employment contracts, to alter terms pertaining to a trial period, to ban successive time-limited employment contracts, to alter severance payments terms, to limit weekly working hours and overtime hours, and to give more powers to trade unions.