Summary of economic news released by SITA on June 21
Datalan will Electronize Government Documents for SKK 33.2 Mln.
The company Datalan, a.s. Bratislava will fully electronize government documents and their circulation. The Ministry of Transport, Postal Services and Telecommunications chose the company from a few shortlisted bidders within the "Digital Government" project. The ministry and Datalan concluded a contract in early June while the final value of the order represents SKK 33.2 million without VAT. The ministry's Maros Solcansky specified that the order will be funded from state coffers however he did not elaborate Datalan' tasks or the deadline for supplying the order. According to the Public Procurement Bulletin the order regards an application program equipment for electronic processing of administrative flows.
Tourist Accommodation Facilities Report Q1 Sales at SKK 1.592 Bln.
Tourist accommodation facilities operating in Slovakia reported sales of SKK 1.592 billion in the first quarter of this year. Compared with the same period of 2005 this is an increase of 15.2 percent in current prices. Of this, foreign tourists paid SKK 1.027 billion, which is 14.6 percent more than in the same period of 2005. Their share in total sales dropped by 0.3 percentage points to 64.5 percent, reported the Slovak Statistics Office on Wednesday.
Fotolab Slovakia with SKK 208.8 Mln. Turnover Last Year
Photo processing company Fotolab Slovakia, a.s. Bratislava reported a turnover of SKK 208.8 million last year, down 14.5 percent y/y. Sales of own products and services that created the biggest portion of company's sales exceeded SKK 130.8 million last year, which represents a moderate drop of 1.5 percent. Company's production consumption however rose by 10.7 percent to SKK 101.5 million. The company processed photos for the Austrian market last year. Company's exports made up 35.6 percent of total sales.
Insurer Uniqa Poistovna Shows Q1 Pretax Profit of SKK 23.5 Mln.
Preliminary figures show Q1 pretax profit of insurance company Uniqa Poistovna, a.s. (Uniqa) at SKK 23.5 million, which is a decrease of 7.1 percent y/y. The insurer's representatives informed SITA that gross written premiums amounted to SKK 593 million in three months of this year, compared with SKK 549.9 million for the comparable period of 2005. Non-life insurance reported more dynamic growth, going up 10.3 percent y/y to SKK 423.5 million. Written premiums in life insurance rose 2.1 percent y/y to SKK 169.5 million.
Slovakia to Borrow EUR 50 Mln. from the EIB for D1 Highway Project
The Slovak cabinet approved at its Wednesday meeting the draft agreement between Slovakia and the European Investment Bank (EIB) on a loan to construct the D1 highway stretch between Sverepec and Vrtizer, part of the Bratislava-Zilina highway. Subject to the agreement is the provision of an EUR 50 million loan, which should be the first EIB loan to construct this highway section. According to the agreement, the total project cost is estimated at EUR 245.3 million (approx. SKK 9.3 billion). The government wants to cover EUR 65.3 million from the national budget and European Regional Development Fund and Cohesion Fund grants. The remaining EUR 180 million should be refinanced through EIB loans.
Zlate Moravce to Get SKK 1.2 Mln. Subsidy to Build Industrial Park
The Slovak cabinet agreed at its Wednesday meeting to provide a subsidy of SKK 1.2 million for founding an industrial park in Zlate Moravce, western Slovakia. The town of Zlate Moravce will use the money for buy land plots under the future industrial park, as well as settlement of costs related to transfer of land plots, administered by the Slovak Land Fund, to the ownership of the town. According to an expert estimate, the value of the land plots is SKK 204 per a square meter. Total costs of building the industrial part are projected at SKK 300 million. The above subsidy will be allocated from the Economy Ministry's chapter within the subprogram "Support of Industrial Parks' Development."
Installment Sale Firm Quatro with 2005 Profit of Nearly SKK 150 Mln.
Installment sale firm Quatro, which formally ceased operation on December 31 of last year when its name was deleted from the Corporate Register, with its legal successor becoming VUB Bank affiliation Consumer Finance Holding, a.s. earned a taxed profit of SKK 146.7 million in 2005. High interest revenues of SKK 542.4 million contributed towards this result. After deduction of paid interest of SKK 71.8 million and other costs, the profit from financial operations was SKK 463.4 million, reduced by an operating loss of SKK 282.1 million.
Central Bank Intervenes on FOREX Market to Support Slovak Crown
The National Bank of Slovakia (NBS) intervened on the Slovak FOREX market after the Slovak crown weakened above 38.50 SKK/EUR on Wednesday afternoon. UniBanka dealer Patrik Malec told SITA that the Slovak currency continues responding to political parties' negotiations on a possible ruling coalition, while the second downward impetus was development in the region. The local currency opened at 38.25/38.28 SKK/EUR to find itself at 38.37/38.39 SKK/EUR before noon.
Rimavska Sobota Mayor will Meet with Draxlmaier Representatives
Mayor of Rimavska Sobota Stefan Cifrus will hold talks with representatives of German company Draxlmaier about compensation for damages to the Rimavska Sobota municipality. The firm gave up its plan to build a plant in Rimavska Sobota after preparations had reached an advanced stage. Mr. Cifrus said to SITA news agency, the plots, which the municipality sold to the investor at a bargain price, are no problem. "We are asking for compensation of costs related to this activity, which should range from SKK 3 million to SKK 12 million," said Mr. Cifrus. The municipality is, however, more concerned about moral damages, for which it wants Draxlmaier to pay SKK 30 million.
MONEY MARKET: Crown Deposit Prices Respond to Falling Crown
Prices of crown deposits on the interbank market reacted to the steep weakening of the Slovak crown on Wednesday. ING Bank dealer Martin Koska said prices rose under expectations that the National Bank of Slovakia (NBS) would decide to support the Slovak currency by another key interest rate rise. This is because the central bank will need a strong currency in order to have inflation under control.
FOREX MARKET: NBS Intervened on FOREX Market to Support Slovak Crown
After the exchange rate of the Slovak crown and the euro climbed to SKK 38.550 SKK/EUR on Wednesday the National Bank of Slovakia (NBS) intervened in several waves on the FOREX market. UniBanka dealer Patrik Malec told SITA that the Slovak currency weakened due to political uncertainty after the parliamentary elections on Saturday, but regional development was the second downward impetus. The local currency opened at 38.250/38.280 SKK/EUR.
STOCK MARKET: Official SAX Share Index Weakened Moderately Midweek
The official share index of the Bratislava Stock Exchange (BCPB) SAX weakened moderately on Wednesday. Although some titles from the SAX base firmed, weakening shares of crude oil refinery Slovnaft pushed the SAX index down by 0.14 percent or 0.54 points to 376.78 points. Turnover on the stock exchange decreased from almost SKK 40 billion on Tuesday to SKK 2.605 billion with SKK 23.856 million in share trading.