Economic news released by SITA on January 31
WSS Reports 2006 Pretax Profit of SKK 101.6 Mln.
Housing construction savings bank Wustenrot Stavebna Sporitelna, a.s. (WSS) earned a pretax profit of SKK 101.6 million last year according to preliminary data calculated in line with international accounting standards. After taxation the profit of the bank amounted to SKK 78.5 million. Net interest income was SKK 298.4 million and net income from fees and commissions reached SKK 108.2 million, reads the data released by WSS.
PSS Reports 2006 Profit of SKK 1.257 Bln.
Slovakia's largest housing construction savings bank Prva Stavebna Sporitelna (PSS) reported a profit of SKK 1.257 billion for last year. Net interest revenues amounted to SKK 1.673 billion and net revenues from fees and commissions were SKK 609 million, informed the company.
VUB Bank Group Earned a Pretax Profit of SKK 4.82 Bln. in 2006
Banking group VUB reported a consolidated pretax profit of SKK 4.82 billion for 2006. Taxed profit of the group was SKK 3.741 billion, informed bank's spokeswoman Alena Walterova. Net interest income was SKK 7.537 billion. Net income from fees and commissions was SKK 2.64 billion. Ms. Walterova said that two main factors influenced the group's result in 2006: an increase in mortgage lending and consumer loans and a loss of SKK 871 million within government paid restructuring bonds.
Igor Barat will be Government Plenipotentiary for Euro Introduction
Current spokesman for Slovakia's central bank Igor Barat will be the new government plenipotentiary for the euro introduction. The cabinet approved him for this post at its regular meeting on Wednesday. Mr. Barat will assume the post on February 15. Mr. Barat will thus replace Ivan Stefanec who resigned on July 4, 2006, following the formation of the new government after elections in June. The plenipotentiary's role is to coordinate the whole process of technical and organizational preparations for Eurozone entry.
Average Interest Rate on Loans in Slovakia in December was 6.99 Pct.
Interest rates on loans provided by commercial banks in Slovakia grew 0.01 percentage point from November to 6.99 percent in December 2006. Since January they grew 1.03 percentage points. Interest rates on loans for non-financial companies reached 6.16 percent on average in the last month of 2006, which is 0.02 percentage points less than in the previous month. The average interest rate on household loans was 8.24 percent in January, up 0.02 points in a month, according to statistics of the National Bank of Slovakia (NBS) drawn up in line with EU harmonized methodology.
Slovakia's Current Account Deficit was SKK 121.3 Bln. in November
According to preliminary data of the National Bank of Slovakia (NBS), the deficit on the current account of the balance of payments was SKK 121.3 billion at the end of November 2006. The c/a deficit thus widened by SKK 38.3 billion compared with the same period of last year. Behind this result was in particular the deficit on the trade balance and the balance of services. On the other hand lower dividend payout within the balance of receipts and a turnaround from a deficit into a surplus in the balance of current transfers contributed to an SKK 800 million monthly reduction of the current account deficit, the NBS informed SITA on Wednesday.
Central Bank's FOREX Reserves Down USD 7.3 Mln. in December
Aggregate FOREX reserves of the National Bank of Slovakia (NBS) reached USD 13.364 billion at the end of last year, representing a m/m drop of USD 7.3 million. This monthly decrease results from a surplus of the revenue-expenditure balance at USD 94.6 million, reduced by negative exchange rate differences at USD 101.9 million as the result of the changed USD/EUR cross rate in the monitored period, the NBS informed SITA.
NBS Reports Crown Firmed 2.6 Pct. Against the Euro in December
In December of last year the Slovak currency strengthened against its reference currency the euro by 2.6 percent when its exchange rate moved from 35.486 SKK/EUR to 34.573 SKK/EUR. The average exchange rate appreciated by 2.5 percent. The crown diverged from its central parity of 38.455 SKK/EUR most significantly on December 28, 2006, when the exchange rate was 34.345 SKK/EUR, meaning a 10.69 percent appreciation from the central parity.
French Investor Steep Plast is Heading to Nitra Industrial Zone
French company Steep Plast is the next investor to set up its business in the Nitra industrial zone. The company wants to put out plastic products for the automotive and perfumery industries in a five-hectare site. Representative of the company Nitra Invest Ondrej Scurka said they plan to start construction in June. The investment will have three phases. The firm will be expanding the plant according to the volume of signed contracts. The firm plans to invest EUR 5 million (approx. SKK 176 million) in its plant that should give jobs to seventy people. Steep Plast has already signed a letter of intent with Nitra Invest.
Ombudsman Pavel Kandrac Wins Reelection in Parliament
Slovakia 's incumbent ombudsman Pavel Kandrac (65) was reelected to the post in parliamentary ballot held on Tuesday evening. Mr. Kandrac whose term ends on March 27 will serve another five years. Mr. Kandrac won 78 votes while the second candidate, the executive director of the Slovak National Center for Human Rights Viera Mrazova had support from 66 deputies.
Slovenske Aerolinie Claims it Can Honor its Current Commitments
Slovak national carrier Slovenske Aerolinie does not plan to file for bankruptcy yet. "It was confirmed that the company is able to fulfill its current commitments," said its spokesperson Tatiana Jonakova. As of January 31, Slovenske Aerolinie started to operate only charter flights. As of the same date, the carrier cancelled all its regular flights, to Brussels and to Moscow. The majority owner of Slovenske Aerolinie, Austrian Airlines (AUA), took back two planes it had made available to the Slovak airline company leaving Slovenske Aerolinie with only one plane at its disposal. The Austrian company justified the halt of operations in Slovenske Aerolinie by the Slovak government's reluctance to settle the company's hidden liabilities.
Eurostat Reports Slovakia's Jobless Rate at 12 Percent in December
A survey by Eurostat, the European Union's Statistical Office, shows that the seasonally adjusted unemployment rate in Slovakia reached 12 percent in December, down 0.3 percentage points from November. Slovakia still reports the second highest jobless rate among EU countries. Only Poland had worse results with a 12.8-percent unemployment rate. The jobless rate in the remaining EU countries moved below 8.7 percent in December. According to data from the Slovak Republic's Labor Office, which uses a different methodology than Eurostat, Slovakia posted an unemployment rate of 9.4 percent in December, up 0.28 percentage points from November.
Pharmacists Lobby the President to Roll Back Health Care Reforms
Slovak President Ivan Gasparovic met on Wednesday with representatives of the Slovak Chamber of Pharmacists (SLeK) over problems of health care in Slovakia. SLeK head Jan Valjan informed that the chamber has drawn up a proposal of certain solutions for the benefit of patients. "After market liberalization, we have almost on the every corner a pharmacy that is able to sell everything to a patient," said Mr. Valjan. According to him, it is necessary to return legislative norms back. "Patients should not be endangered by consuming drugs that he or she theoretically should not use," said Mr. Valjan, adding that patients lack information.
OTP Banka Slovensko Closed 2006 with SKK 284 Mln. Profit
OTP Banka Slovensko, a.s., closed 2006 with a profit of SKK 283.7 million. According to individual bank data compiled in line with international financial reporting standards (IFRS), net interest income of the bank amounted to SKK 1.066 billion. Net profit from financial operations was SKK 105.4 million, and losses from securities reached SKK 61 million.
Tatra Banka Provided 4,700 Mortgages Worth SKK 8.8 Bln. Last Year
The third largest bank in Slovakia, Tatra Banka, signed last year more than 4,700 mortgages amounting to nearly SKK 8.8 billion. Compared with 2005, this means an increase by over 65 percent. "Last year mortgages represented again the fastest growing type of loans to citizens," said Tatra Banka spokesperson Tereza Coplakova. On a cumulative basis, the bank approved over 19,900 mortgages worth SKK 24.9 billion since the start of mortgage lending.
Slovak Towns Raised Real Estate Taxes Only Moderately
Slovak cities increased real estate taxes by 0.97 percent over the year. This number is based on monitoring of the Business Alliance of Slovakia (PAS). According to its survey, 66 towns of 84 monitored towns did not change tariffs at all, four towns decreased them moderately, and 14 towns increased some real estate tax tariffs. "For comparison, at the turn of 2004/2005, the tariffs of the real estate tax soared by 80.2 percent on the average. One year later they rose 10.3 percent," wrote PAS.
Dexia Banka Slovensko Reports 2006 Pretax Profit of SKK 386.2 Mln.
Dexia Banka Slovensko, a.s., reported for the year 2006 a pretax profit of SKK 386.2 million according to preliminary figures. Taxed profit was SKK 309.9 million. Net interest income was SKK 1.396 billion. Net income from fees and commissions accounted for SKK 223.9 million, according to information the bank released.
MONEY MARKET: Banks Meet January Reserve Requirement at 100.18 Pct.
Commercial banks deposited SKK 12.234 billion in their reserve accounts in the National Bank of Slovakia (NBS) on the last day of the month, meeting the minimum requirement for January on a cumulative basis at 100.18 percent. An additional SKK 4.245 billion ended up in the central bank's overnights. OTP Banka dealer Juraj Mitosinka stated that SKK 168.585 billion from the repo tender on Tuesday left the sector and a maturing SKK 150 billion returned on the interbank market.
Forestry Company Lesy SR Invests SKK 24.5 Mln. into Forest Roads
State-run forestry company, Lesy SR, invested over SKK 24.5 million into the construction and reconstruction of its network of forest roads. The company received the sum as compensation for restricted forest management in protected areas. Spokesman for Lesy SR Peter Gogola informed that six environmental regional offices paid compensation to Lesy SR for the restrictions. The company used nearly SKK 11.7 million for the construction of new forest roads and the remaining sum for repairs of damaged existing roads.
FOREX MARKET: Slovak Crown Posts Some Gains toward the Euro
The Slovak crown strengthened about 16 hallers towards the euro on Wednesday. The crown's exchange rate stood just above 35.000 SKK/EUR before the close of trading. VUB dealer Ladislav Benedek commented that the crown opened at 35.220/35.240 SKK/EUR and it gradually improved to the closing 35.060/35.080 SKK/EUR. "The Slovak currency strengthened together with other regional currencies. Market players showed interest in investments on emerging markets before the meeting of the central bank of the United States, the Fed," Mr. Benedek explained.
CSOB in Slovakia Posts 2006 Taxed Profit of SKK 660.32 Mln.
Slovak subsidiary of Czech bank CSOB posted a taxed profit of SKK 660.32 million last year. The bank's balance-sheet total stood at SKK 134.38 billion at the end of December. Client deposits amounted to SKK 61.35 billion and the gross volume of loans the bank provided was SKK 49.23 billion, reads data disclosed by CSOB in Slovakia.
About 50,000 People in Slovakia Use Fast Mobile Internet Access
About 50,000 clients of the two mobile operators active in Slovakia used Internet mobile access via broadband technologies at the end of 2006. "According to our estimates, about 30,000 clients of T-Mobile used high-speed access to the Internet. Approximately 20,000 people used our services," Orange Slovensko director for strategy Ivan Martak said at a conference Telekomunikacie SR 2007 on Wednesday. The above statistics are related to high-speed Internet access, for which T-Mobile uses Flash-OFDM technology of the company Flarion Technologies. Orange Slovensko uses the HSDPA technology.
Nordzucker AG Will Not Close its Sugar Mill in Slovakia
German company Nordzucker AG does not plan to close its sugar mills in Slovakia, the Czech Republic, or Hungary. The chairman of the board of directors of the sugar mill Povazsky Cukor in Trencianska Tepla, Ivan Kardos, informed at a press conference on Wednesday. On the contrary, Povazsky Cukor plans to buy the former sugar quota C, which the European Union allocated to Slovakia amounting to 10,000 tons. Originally, Slovak sugar mills should have distributed this quota among themselves. After Eastern Sugar announced it would close its sugar mill in Dunajska Streda, its portion of this quota remained unused. Povazsky Cukrovar will have to share this portion with its rival, Slovenske Cukrovary. The division ratio is not yet known.
STOCK MARKET: SAX Index Lost 0.25 Pct. on Wednesday
The Bratislava Stock Exchange (BCPB) reduced its gains from the beginning of the week. While Slovakia's official SAX share index improved on Monday and Tuesday, shares of Slovak crude-oil refiner Slovnaft and VUB pulled it down 0.25 percent or 1.05 points to 413.75 points on Wednesday. Turnover on the Bratislava Stock Exchange (BCPB) increased from SKK 404.713 million on Tuesday to SKK 20.37 billion on Wednesday because of direct transfers of government bonds. As little as SKK 839,800 fell to share trading.