Economic news released by SITA on Thursday, January 25
State Treasury Processed over 67 Mln. Transactions Last Year
Finance Ministry's agency the State Treasury processed almost 67.2 million clearing transactions last year, up 36 percent y/y. Currently it administers 18,091 accounts and has almost 1,700 clients State Treasury's share on interbank clearing accounted for almost 25 percent. The agency's spokeswoman Martina Hujova specified it means that approx. one in four bank transactions on average took place via the State Treasury. It processes clearing transactions, cross-border transactions and transactions between clients within the state treasury system.
Antitrust Office Permits Takeover of Hradok Masokombinat
The Antitrust Office (MPU) has approved the takeover of meat processing company Hradok Masokombinat, s.r.o. by clearing its concentration with the business of Jan Molnar, PMU spokesperson Alexandra Bernathova informed. Mr. Molnar thus gained direct control over Hradok Masokombinat through his company Mecom Agro, s.r.o., on the basis of contracts on equity transfer. "The office came to the conclusion that this concentration will neither significantly influence the competitive environment on relevant markets nor create or strengthen a dominant position of participants of the concentration on any of examined relevant markets," said Ms. Bernathova. This verdict is not effective yet and it can be challenged within fifteen days of its delivery.
Dexia Banka Provided SKK 1.121 Bln. in Housing Loans Last Year
Dexia Banka Slovensko, a.s. provided housing loans for SKK 1.121 billion last year, up 22.4 percent y/y. In the same year it also provided consumer loans amounting to SKK 654.6 million, up 60.5 percent y/y. The bank's spokesman Michal Furik remarked that despite a growth in interest rates they recorded an increasing interest in loans. The bank reported the highest growth in the sector of American-type mortgages. Dexia Banka plans to continue increasing its retail market share this year.
Penta Inaugurates its EUR 16 Mln. Investment Digital Park Part One
Private equity Penta group has invested EUR 16 million into the project of the first part of the administrative center Digital Park in Bratislava district of Petrzalka. The new building standing across the street from the Aupark shopping mall provides 9,600 square meters of offices and 2,100 square meters of retail premises. The center underwent final building approval in September 2006 and it will be ceremonially opened on January 25, representatives of Penta Investments informed SITA.
World Bank Presents a Report on new EU Members from CEE Countries
Its report on ten new European Union members from central and Eastern Europe, the World Bank warns of some risks they will have to face in the future. World Bank's economist for Slovakia, Anton Marcincin specified as Slovakia's goals sustaining economic growth at the highest possible level and meeting criteria for introduction of the euro. However, to achieve these goals Slovakia has to eliminate surfacing risks. The country should concentrate on continuation of structural reforms, as Slovakia and other countries of the region considerably eased their efforts in this sphere.
State Housing Support Fund Can Distribute SKK 3.896 Bln. in 2007
The State Housing Development Fund (SFRB) can distribute nearly SKK 3.896 billion in its support products this year. SFRB can support housing with SKK 3.883 billion and with non-returnable grants at SKK 13 million. The budget of SFRB was originally SKK 4.225 billion last year. In March 2006 the previous government approved increasing the budget by SKK 438 million and in late November the new government approved further increasing of the budget by SKK 65.89 million.
Number of People in Material Need in Slovakia Grew at the End of 2006
Slovakia reported 407,092 people in material need at the end of last year, which is 7.5 percent of the population. This represents an increase of over 44,000 people or 0.81 percentage points y/y. Only over the last three months of last year the number of people in material need went up by nearly 43,000. The number of people in material need rose in all eight counties of Slovakia. The Nitra County reported the highest increase in the number of people in material need, up nearly 8,900 people y/y, Presov County reported an increase of 7,500 people y/y and Banska Bystrica County reported an increase of 7,400 people y/y.
Quality Certificate Lets PSA in Trnava Export its Cars Outside the EU
The Trnava-based car plant PSA Peugeot Citroen Slovakia can export its cars also to markets of non-EU countries. The company was awarded a quality system certificate following an audit by the French certification association UTAC. "PSA Peugeot Citroen Slovakia will have to maintain quality parameters of its products constantly, since the audit is held every year and after three years the validity of the certificate has to be renewed," informed PSA Trnava communications department's Peter Svec.
Insurer Wustenrot Poistovna with High Growth in Profit Last Year
Insurance house Wustenrot Poistovna, a.s., reported a net profit of SKK 31.3 million for 2006. Director general Siegfried Fatzi said that the economic development of the insurer was very favorable and its preliminary net profit grew almost 300 percent. He explained that in 2004, Wusternrot Zivotna Poistovna and Univerzalna Bankova Poistovna merged, and in the first two years of Wustenrot Poistovna's existence, restructuring and tasks associated with the merger were a burden for the company. The year 2006 was the first when their efforts came to fruition.
Decision on Completion of NPP Mochovce Set for End of April
Dominant Slovak power producer Slovenske Elektrarne (SE), a.s., will make a definitive decision on the completion of the third and fourth reactor units of the Mochovce Nuclear Power Plant (EMO) by the end of April, said director of MO34 plant Giancarlo Aquilanti. "If the decision is positive, then we will see a transition of the third and fourth reactors from the stage of conservation to the stage construction in 2007. I expect this year to bring a lot of positive changes for these reactors, as well as for the region and its residents," said Mr. Aquilanti. Prime Minister Robert Fico said in December the he expects the SE's definitive stance on EMO completion by the end of February at the latest.
Kosice Airport Plans to Invest SKK 140 Mln. this Year
Letisko Kosice-Airport Kosice, a.s., of which TwoOne consortium became the majority shareholder last year, will invest SKK 141.5 million this year. The airport's executive director, Marta Horvathova, told SITA that the biggest portion from the total investment package, SKK 90.5 million, should head towards the first stage of expansion the apron area. The second biggest item will be the planned acquisition of snow-removing equipment for SKK 20.5 million, and the acquisition of equipment for clearance of passengers and luggage will cost SKK 18.2 million. The extension of a parking lot will require SKK 4 million and the terminal's adaptation will cost SKK 2 million. The company allocated SKK 6.25 million for other investments.
MONEY MARKET: Mainly Shortest Deposits Traded on Thursday
Trading on the interbank market focused mainly on the shortest deposits on Thursday. UniBanka dealer Jozef Hempfinger stated that prices of deposits on the shortest end of the yield curve slightly rose during the day. Commercial banks deposited SKK 9.242 billion in their reserve accounts in the National Bank of Slovakia (NBS) on Thursday meeting the January minimum requirement on a cumulative basis at 110.65 percent. As much as SKK 24.271 billion ended up in the central bank's one-day sterilization.
STOCK MARKET: SAX Remains Flat at 412.69 Points on Thursday
The value of Slovakia's official SAX share index did not change on Thursday and its stayed flat at 412.69 points. Out of SAX base titles, only fifteen shares of the Slovak crude-oil refiner Slovnaft changed hands on the stock exchange floor. Both the average and the closing price of the refiner's shares was SKK 3,550 as on Wednesday. Turnover on the Bratislava Stock Exchange (BCPB) moderately increased from SKK 436.2 million on Wednesday to SKK 644.4 million, of which SKK 5.3 million fell to share trading.
FOREX MARKET: Slovak Crown Continues Weakening
The Slovak currency weakened sharply during trading on Thursday. Tatra Banka dealer Boris Somorovsky stated that the crown opened at 35.000/35.040 SKK/EUR. The local currency initially strengthened to 34.900/34.940 SKK/EUR. "However, at this level, the crown started losing quickly," he commented. After the crown weakened over 35.100 SKK/EUR, the exchange rate climbed up to 35.300 SKK/EUR. Mr. Somorovsky added that the crown later reported moderate gains, and it stood at 35.180/35.220 SKK/EUR before the close of trading.