Summary of economic news released on Thursday, February 22:
PCLA Buyout Bid will not Influence Firm's Strategy
A mandatory buyout bid announced by cement producer Povazska Cementaren, a.s. Ladce (PCLA) corresponds with the interests of shareholders, employees and creditors of the firm, says PCLA board of directors and the supervisory board. The buyout bid will have no impacts on the relations of the company and its shareholders, employees and creditors. The bid will in no way harm the company's strategic plans, employment or its business activities in the region.
Hartmann-Rico's Last Year's Turnover in Slovakia was SKK 642 Mln.
The company Hartmann-Rico, s.r.o. medical and hygiene products trader reported a turnover of SKK 642 million in Slovakia last year. Company's director general for eastern Europe, Lubomir Palenik, said that this represents a year-on-year increase of 11.3 percent. He views the company's results for last year very positively. The company has been operating on the Slovak market already for 14 years but double digit growth is a rather exceptional result on such saturated market as Slovakia. The company registered EBIT of SKK 107 million last year, up 4.7 percent y/y. Net profit grew two percent to SKK 86.1 million last year. Sales went up 15.9 percent y/y. Mr. Palenik said that the negative factor last year was an increase in the company's receivables towards hospitals.
Patient Association Disagrees with Cancellation of Marginal Fees
The Association for the Protection of Rights of Patients (AOPP) does not agree with cancellation of some marginal fees in the health care that the previous government introduced as part of pension reform. AOPP deputy chairwoman Anna Rehakova said at a press conference on Thursday, that the way in which the government solved the question of fees after the parliamentary elections was not a good solution. She maintains that fees should have been preserved and the government should have compensated socially weaker citizens for them. Instead of this, health insurance companies compensate lost income to doctors and hospitals.
Spanish Firms Want to Cooperate with Slovak Automotive Industry
Nine Spanish companies have shown interest in cooperating with Slovakia in the automotive industry. The Slovak Investment and Trade Development Agency (SARIO) announced that these are firms Elausa Electronica i Automatismes, Mecaniques Joan S.L., Garvi Industrial S.A., Paver S.L., Nub3d Sistemas de Medida, Maviva S.A., Transformaciones Metalicas Marsan S.L., Qualitec S.A., and RPK.
TAM Manages Over SKK 50 Bln. in its Mutual Funds
Asset management company Tatra Asset Management (TAM) manages assets exceeding SKK 50 billion in its mutual funds. The deputy chairman of the TAM board of directors, Jan Kovac, said at a press conference on Thursday that this represents about one-third of the market according to data of the Slovak Asset Management Companies Association. Out of the total value of managed assets, investments in TAM's open-end mutual funds make up 89 percent. TAM registers more than 100,000 active clients.
Slovakia Can Store its Emergency Oil Reserves in the Czech Republic
On Thursday, an agreement was signed enabling storing Slovakia's emergency reserves of crude oil and crude oil products on the territory of the Czech Republic. Chairman of the State Material Reserves Administration in Slovakia Marian Cakajda and his Czech counterpart Ladislav Zabo signed the document. Spokesman of the Slovak authority Lubomir Urban said that the agreement neither establishes a duty on the Slovak Republic nor does it mean an obligation for it to store emergency reserves of oil and oil products in the Czech republic but in case of need it makes it possible to store them on the territory of the neighboring state.
Fin-Force will Open a Branch in Bratislava in April
The company Fin-Force that provides global payment processing services to local, regional, and international banks is preparing to open a branch in Bratislava in early April. Fin-Force in Slovakia will process payments for the Hungarian K&H Bank that is a member of the KBC group. The branch will gradually start providing services to other central European banks of the Belgian KBC group. KBC informed that in the future Fin-Force can provide services also to new clients from Bratislava. The opening of the Bratislava branch complies with the firm's growth strategy that should improve services and bring it closer to clients. Patrick Van Loij who has been working with CSOB in the Czech Republic since 1999 will head the Bratislava branch. The organizational unit of Fin-Force Naamloze Venootschap is already enrolled in the Commercial Register.
Banska Bystrica County Announces Winners of Tender to Buy Policlinics
A commission established by the Banska Bystrica County to evaluate bids in the public tender recommends to county council deputies to approve selling assets of county policlinics to firms ACIDUM, s.r.o., Nove Mesto nad Vahom, PLANTAGO SK, s.r.o., Povazska Bystrica, VISCUM, s.r.o., Povazska Bystrica and PINUS SK, s.r.o., Povazska Bystrica. The head of the Banska Bystrica County office and the chairman of the evaluation commission, Jan Marcinek told a news conference on Thursday that the commissions recommends selling to firm ACIDUM two from five buildings of the Banska Bystrica policlinics, the one at Horna Street for SKK 56.2 million and the second one at Bottova Street for SKK 8.8 million. The commission recommends selling assets of policlinics in Detva to the firm PLANTAGO for SKK 35 million, assets of Poltar policlinics to the firm VISCUM for SKK 15 million and assets of Filakovo policlinics to the firm PINUS SK for SKK 20 million. Firms PLANTAGO SK, VISCUM and PINUS SK reside at the same address and are personally interconnected.
Opposition Christian-Democrat Proposes Parent Bonuses to Pensions
Candidate for the post of the Christian-Democratic Movement (KDH) chairman Vladimir Palko presented on Thursday the first part of the economic-social program called "Economy of Conservative Solidarity," which he would like to be the party's economic program in case of his election as the party leader. Mr. Palko wants the state to refund to parents financial costs related to raising children by the implementation of a parent bonus to pensions.
Istrobanka Plans its Taxed Profit to Rise by a Quarter this Year
Istrobanka plans to increase its taxed profit by 25 percent y/y this year. Preliminary figures show Istrobanka's profit at SKK 151 million in 2006. The bank's board member Lubomir Remsik told journalists on Thursday that the bank also plans its total assets to increase by twenty percent. The bank's total assets stood at SKK 37.1 billion at the end of last year. The growth should be driven by client business in the corporate, as well as retail segments. "From the medium-term viewpoint we expect positive macroeconomic development to enable us to reach a four-percent market share in provided loans," said Mr. Remsik.
Slovakia's New Industrial Orders Up 36.4 Pct. y/y in December 2006
The year-on-year growth of new industrial orders in Slovakia accelerated from 28.7 percent in November to 36.4 percent in December 2006. Eurostat, the Statistical Office of the European Communities, informed that Slovakia regained its position of European leader in this indicator. In comparison with twenty EU countries that provided data to Eurostat, Slovakia moved to the first position. Hungary ended the second with a 35.1-percent growth in industrial orders, followed by Latvia with a 33.5-percent growth. In a month-on-month comparison, industrial orders in Slovakia grew 2.9 percent.
MONEY MARKET: Banks Move to Meet Required Reserves Target
Sufficient volume of funds on the interbank market after the settlement of the National Bank of Slovakia's (NBS) repo tenders on Wednesday is enabling commercial banks to replenish their minimum reserves required for February. Nevertheless, some of the banks will have to regularly refinance themselves in the central bank until the end of the month to meet the requirement, said OTP Banka's Juraj Mitosinka. "The shortest deposit prices will stay at high levels until Wednesday," he said. The banks deposited SKK 39.31 billion in their reserve accounts in the National Bank of Slovakia (NBS) meeting the February requirement on a cumulative basis at 79.12 percent. They borrowed SKK 3.515 billion from the central bank in one-day contracts.
STOCK MARKET: SAX Index Continues Moderate Strengthening
The Bratislava Stock Exchange (BCPB) continued moderately strengthening during trading on Thursday. The value of Slovakia's official SAX share index rose 0.13 percent or 0.54 points to 411.46 points. Turnover on the Bratislava Stock Exchange (BCPB) fell from SKK 10.334 billion on Wednesday to SKK 339.4 million on Thursday with as little as SKK 1.5 million in share trading.
FOREX MARKET: Crown Fluctuates in a Narrow Band on Thursday
The Slovak currency fluctuated in a narrow band on Thursday. CSOB's Richard Brza commented that the crown opened at 34.35 SKK/EUR and closed at 34.335/34.355 SKK/EUR. The local currency reached the strongest level of the day at 34.255 SKK/EUR, and the weakest level was 34.38 SKK/EUR. "Mainly the euro-dollar market is now influencing not only the Slovak currency but also the surrounding countries' currencies," he said. He added that such influence should persist for some time. Next week, the crown could move in the band from 34.20 SKK/EUR to 34.50 SKK/EUR, Mr. Brza assumes. "The 34.20 SKK/EUR level is now too strong, and most of the market players think that the central bank would intervene at this level," he commented. However, demand for the Slovak currency from London banks already is very strong at 34.40 SKK/EUR.
Economy Ministry has Drawn up Slovakia's Energy Efficiency Plan
The Economy Ministry has drawn up the Plan for Slovakia's Energy Efficiency, which will constitute a part of Slovakia's Energy Safety Strategy with an outlook until 2030. The spokesman of the Economy Ministry, Branislav Zvara, stated that the plan aims to reach a gradual reduction of energy demand to the European Union level. "The plan should create a motivating environment for efficient energy solutions," Mr. Zvara added. The target of the plan is to reduce energy consumption by nine percent in the period between 2008 and 2017.