Slovenia Business Week, no 04, January 23rd 2006
Table of Contents:
HEADLINES ............................................................................................................................. 3
Gorenje and Schefenacker Grah Automotive Sign Letter of Intent ....................................... 3
Gorenje, Arcont and Medex Top Rated Firms of 2005.......................................................... 3
GEM Survey Shows Improvement in Entrepreneurship in Slovenia ..................................... 3
INTERNATIONAL COOPERATION ...................................................................................... 5
Japanese Embassy Opens in Ljubljana ................................................................................... 5
Lukacic Receives Moldavian Agriculture Minister ............................................................... 5
Luci Presents Credentials to Serbia-Montenegro President ................................................... 6
State Secretary But Pleased with Outcome of Bird Flu Conference ...................................... 6
PM Jansa Meets Diplomats Accredited to Slovenia .............................................................. 6
EUROPEAN UNION ................................................................................................................. 8
Slovenia Welcomes EU Parliament's Rejection of Port Directive ......................................... 8
PM: Rejection of EU Budget by European Parliament Expected .......................................... 8
EU Criticises Slovenia for Failing to Report Fish Catch ....................................................... 8
Drobnic Calls on Old EU Members to Lift Labour Restrictions ........................................... 9
STATISTICS/FORECASTS .................................................................................................... 10
Net Wages up 10.5% in November ...................................................................................... 10
Jobless Rate at 10.3% in November ..................................................................................... 10
Reforms Don't Go Far Enough, Economist Says ................................................................. 10
LJSE Annual Turnover Down 30% in 2005 ........................................................................ 11
Government Takes Measures to Boost Phasing of EU Funds ............................................. 11
FINANCE................................................................................................................................. 13
Petrol Prices Rise ................................................................................................................. 13
EBRD Interested in Privatisation of Slovenian Second Largest Bank ................................. 13
LHB Frankfurt Rated as Stable ............................................................................................ 14
Pension Institute Finishes Year in Black .............................................................................. 14
EUR 33m Available for Eco Loans This Year ..................................................................... 15
NLB Expects to Lose EUR 8.35m due to Euro Changeover ............................................... 15
EBRD Interested in Privatisation in Slovenia ...................................................................... 15
Fund to Dispense EUR 43.5m for Enterprise Promotion in 2006 ........................................ 16
Ljubljana Stock Exchange .................................................................................................... 16
Foreign Exchange ................................................................................................................. 17
REGIONAL INFORMATION ................................................................................................ 18
Fig Growing in Istria to Be Revived .................................................................................... 18
Analysis Finds Poor Business Cooperation in Gorisko Region ........................................... 18
BRANCH INFORMATION .................................................................................................... 20
Watchdog Preparing 3G Tender ........................................................................................... 20
Publishers Concerned about Effect of Flat Tax Rate ........................................................... 20
Flat Tax Would Exert Severe Pressure on Food Industry .................................................... 21
Sea Motorways a Priority Project, Official Says .................................................................. 21
Government Adopts Decree on 2006 Agriculture Policy Measures .................................... 22
Tourists from Hotter Parts Enjoying Snow in Slovenia ....................................................... 22
Slovenia's Wine Association Plans Breakthrough to Foreign Markets ................................ 23
COMPANIES ........................................................................................................................... 24
Simobil Ends Year With 22.7% of the Market .................................................................... 24
Turkish Airlines Expects Strong Demand for Istanbul Flight .............................................. 24
Mercator to Build Shopping, Residential Centre in Zagreb ................................................. 25
Major Trimo Owners Re-Launch Takeover Bid .................................................................. 25
Andrej Lovsin Appointed New Intereuropa Chairman ........................................................ 25
Adria Supervisors Endorse Plan for Lease of New Jets ....................................................... 26
Luka Koper Happy with Rejection of Port Directive ........................................................... 26
Focus on Expansion to Markets of Former Yugoslavia, Era Boss Says .............................. 27
Chief Lek Supervisor Claims Lek Is Successful Company ................................................. 27
Future of Slovenia's Sole Sugar Factory Still Uncertain ...................................................... 27
Steel Group Expects Level Performance in 2006 ................................................................ 28
Retailer Engrotus to Employ 900 in Macedonia .................................................................. 28
Kapital Gives Out Awards for Best Mutual Funds .............................................................. 28
Packaging Manufacturer Gets New Management Board ..................................................... 29
Former Mag Editor Appointed Chairman of Delo ............................................................... 29
Slovenia Selects London Law Firm for NEK Arbitration .................................................... 29
Lek Boss Puts Number of Redundancies at 40 to 50 ........................................................... 30
Holding Autocommerce Will List on the LJSE ................................................................... 31
SLOVENIA IN BRIEF ............................................................................................................ 32
Slovenian Ambassador Meets Croatian Foreign Ministry Official ...................................... 32
Government Proposes Separate Insurance Company Restructuring Law ............................ 32
FM Rupel Congratulates New Israeli Foreign Minister ....................................................... 32
Government Appoints UK Ambassador Permanent Representative to the IMO ................. 32
FM Rupel Sends Condolences to Slovak Counterpart ......................................................... 32
President Drnovsek in Bolivia.............................................................................................. 32
2
HEADLINES
Gorenje and Schefenacker Grah Automotive Sign Letter of Intent
Under the deal, Grah Automotive will become a supplier materials, components, and services
to Gorenje, while two companies are also to team up to develop new component
The home appliance maker Gorenje and Slovenske Konjice-based Schefenacker Grah
Automotive, a subsidiary of the German auto equipment maker Schefenacker, signed on
Monday, 16 January a letter of intent on cooperation, Gorenje said.
Under the deal, Grah Automotive will become a supplier materials, components, and services
to Gorenje, while two companies are also to team up to develop new components.
According to Gorenje, Schefenacker is well-known around the world for its knowledge and
experience in developing and making all types of lights for the automotive industry.
The company is also expanding its business to Serbia-Montenegro, which is of great
importance for Gorenje as well.
In case the development of new components proves successful, Gorenje will get a good
supplier, while Schefenacker will include components for home appliances to its production.
The two companies also intend to cooperate in the field of staff training, the company added.
Gorenje, Arcont and Medex Top Rated Firms of 2005
Household appliance group Gorenje, honey product maker Medex and Arcont, a
manufacturer of doors and windows, have been named the top rated companies of 2005 by
Slovenian rating firm I and its international partner Dun&Bradstreet
Household appliance group Gorenje, honey product maker Medex and Arcont, a manufacturer
of doors and windows, have been named the top rated companies of 2005 by Slovenian rating
firm I and its international partner Dun&Bradstreet.
These companies have the lowest risk factors, they cover their liabilities in time, are
successful performers and do not embark on risky operating or equity deals that might
jeopardise their performance, rating firm I said on Tuesday, 17 January about the companies'
A1 rating.
The trio was selected from a shortlist of 10 companies, which had been selected among 444
firms with the highest rating; the number of the latter rose by 18% compared to the year
before, deputy director of I, Andrej Brvar, said at the award ceremony.
The rating firm I, which was set up in 1990, represents Dun&Bradstreet in Slovenia. It rates
several thousand Slovenian companies each year.
GEM Survey Shows Improvement in Entrepreneurship in Slovenia
The latest Global Entrepreneurship Monitor (GEM) survey has found that the situation in
Slovenia is improving, although the country still lags behind the top performers in the field
The latest Global Entrepreneurship Monitor (GEM) survey has found that the situation in
Slovenia is improving, although the country still lags behind the top performers in the field.
The share of adults embarking on entrepreneurship or owning a nascent business has risen
significantly, Miroslav Rebernik, the head of the GEM survey for Slovenia, told a conference
in Maribor on Thursday, 19 January.
Nevertheless, among 20 European countries included in the survey Slovenia places only 17th
in terms of early entrepreneurial activity; it is in the bottom fifth among all 35 participating
countries.
3
According to Rebernik, it is encouraging that an increasing number of people decide to start
their own business because they spot a good opportunity rather than being forced into it due to
a lack of other job opportunities.
Even though men are still more likely to start their own business than women, Rebernik said
the number of women is on the increase as well. Moreover, the "mortality index" which
measures the rate of failed ventures has improved.
Despite encouraging signs, Rebernik also highlighted several shortcomings that have to be
tackled: low innovativeness of established companies, poor education structure of
entrepreneurs, an environment not conductive of entrepreneurship and a lack of training
programmes for entrepreneurs.
People are disinclined towards entrepreneurship: the minority of people are convinced that
entrepreneurship is an appropriate career, that entrepreneurs are respected and that media
often feature stories on successful entrepreneurs, he said.
Rebernik stressed that Slovenia must fundamentally alter its attitude towards entrepreneurs,
while the government faces the task of achieving social consensus on the significance of
entrepreneurs for economic growth.
The results were presented at an international conference dubbed Innovative Approaches to
the Development of Entrepreneurship, which was organised by the Public Agency for
Entrepreneurship and Foreign Investments.
4
INTERNATIONAL COOPERATION
Japanese Embassy Opens in Ljubljana
Japan's Parliamentary Secretary for Foreign Affairs Akiko Yamanaka and Slovenian FM
Dimitrij Rupel agreed at the official opening of the Japanese Embassy in Ljubljana that the
mission will help bolster relations between the two countries
Japan's Parliamentary Secretary for Foreign Affairs Akiko Yamanaka and Slovenian FM
Dimitrij Rupel agreed at the official opening of the Japanese Embassy in Ljubljana on
Monday, 16 January that the mission will help bolster relations between the two countries.
Yamanaka moreover stressed in her speech that the embassy's opening, which was hosted by
the non-resident Japanese Ambassador (AND NOT the first resident ambassador) to Slovenia
Itaru Umezu, will lead to a better cooperation between Japan and Slovenia, and open up new
opportunities in the field of tourism.
She also said that Japan has been following Slovenia's development with great admiration,
pointing to it's EU and NATO accession, and its chairmanship of the Organisation for
Security and Cooperation in Europe (OSCE) in 2005.
Rupel meanwhile said in his address that relations between the two countries were friendly
and sincere in all fields.
Both countries have a parliamentary group for bilateral friendship, Rupel said. In Slovenia, it
is headed by Anton Kokalj; in Japan, by Okiharu Yasuoka, who also attended the opening
together with Hideyuki Aizawa, the head of the Association of Slovenian-Japanese
Friendship.
According to Rupel, Japan is one of Slovenia's most important trade partners in Asia.
Japanese companies were among the first to establish joint ventures with Slovenian partners
in 1991, while Slovenian companies have been stepping up their presence on the Japanese
market of late.
Rupel is convinced that Slovenia's EU membership represents a new possibility for
cooperation, especially within the Asia-Europe Meeting (ASEM). He said that Slovenia's stint
as EU president in the first half of 2008 will add a new dimension to relations between the
two countries.
Japan recognised Slovenia's independence in March 1992, while diplomatic relations between
the two countries were established in October of that year. In February 1993, Slovenia opened
its embassy in Japan, which is now headed by Ambassador Robert Basej.
Lukacic Receives Moldavian Agriculture Minister
The pair discussed the European Common Agricultural Policy (CAP) and Moldova's
prospects for joining the EU
Agriculture Minister Marija Lukacic met her Moldovan counterpart Anatoly Gorodenc in
Ljubljana on Monday, 16 January. The pair discussed the European Common Agricultural
Policy (CAP) and Moldova's prospects for joining the EU.
According to a press release from the Ministry of Agriculture, Forestry and Food, Lukacic
pointed to a history of good relations between Slovenia and Moldova, adding that Slovenia's
experience with EU accession might prove of special value to Moldova.
Lukacic offered Moldova logistical and technical support as the country takes its first steps
towards the EU.
Gorodenc was also acquainted with the current situation in the Slovenian agriculture sector
and the structural changes brought about by being a part of the common European market.
5
Luci Presents Credentials to Serbia-Montenegro President
The new ambassador pledged Slovenia's support for Serbia-Montenegro's efforts to join the
EU, and stressed that great progress had been made in relations between Slovenia and
Serbia-Montenegro in all areas
Slovenia's new Ambassador to Serbia-Montenegro Miroslav Luci presented his credentials to
Serbia-Montenegro President Svetozar Marovic in Belgrade on Tuesday, 17 January,
according to a press release from Marovic's office.
The new ambassador pledged Slovenia's support for Serbia-Montenegro's efforts to join the
EU, and stressed that great progress had been made in relations between Slovenia and SerbiaMontenegro in all areas.
Marovic took this opportunity to highlight that his country considered Slovenia an important
partner in its bid to join the EU.
Luci was appointed ambassador in November, having previously worked as state secretary in
the prime minister's office.
He replaces Borut Suklje, the first Slovenian ambassador in Belgrade, after the two countries
established diplomatic relations in 2000.
State Secretary But Pleased with Outcome of Bird Flu Conference
The conference on the avian flu was successful, as it agreed to fight the disease in a
harmonised way and donate a total of US$ 1.9bn, US$ 0.4bn more than planned, Agriculture
Ministry State Secretary Franc But told STA in Beijing
The conference on the avian flu was successful, as it agreed to fight the disease in a
harmonised way and donate a total of US$ 1.9bn, US$ 0.4bn more than planned, Agriculture
Ministry State Secretary Franc But told STA in Beijing on Wednesday, 18 January.
The state secretary said that because of the level of its development, Slovenia is among the
donor countries: "At this stage, Slovenia will donate EUR 30,000, the same as other
comparable countries."
"Bird flu is a problem facing all of humanity. There is no need to panic, but this is a great
challenge which calls for better cooperation in order to avoid the worst," But continued.
"Underdeveloped countries, lacking the mechanisms for awareness-raising campaigns and
taking necessary measures, are the main problem. This only increases the level of risk," he
added.
Like But, most of the 700 participants from 90 countries and 20 international organisations
were pleased with the outcome of the two-day conference, organised by China, the World
Bank and the European Commission.
The participants also unanimously adopted the Beijing Declaration, calling for "harmonised,
prompt and determined" action against the pandemic which could claim millions of lives.
Here, the central role should be played by international animal and health organisations.
The donations will be used for the training of veterinary services, education, research as well
as adequate oversight mechanisms. While US$ 1bn are intended for the poorest countries in
SE Asia and Africa, US$ 900m should be used for loans.
PM Jansa Meets Diplomats Accredited to Slovenia
At a reception for diplomats and ambassadors at Brdo pri Kranju, PM Janez Jansa stressed
that as an EU and NATO member, Slovenia would continue to support the open-door policy
for all countries of the Western Balkan
At a reception for diplomats and ambassadors at Brdo pri Kranju on Wednesday, 18 January,
PM Janez Jansa stressed that as an EU and NATO member, Slovenia would continue to
support the open-door policy for all countries of the Western Balkans.
6
Slovenia has accepted the challenge of greater international responsibility. In the past year it
joined numerous humanitarian and peace-keeping missions as well as economical and cultural
projects of the international community, Jansa said.
Slovenia had completed a "very dynamic and exciting year", and will continue this year with
the implementation of its foreign policy priorities and pay much attention to nurturing good
relations with its neighbours, according to Jansa.
Addressing the reception on behalf of the diplomatic corps, Papal Nuncio in Slovenia Santos
Abril y Castello stressed that Slovenia had walked a "long and positive path". He is convinced
that by chairing the OSCE it had successfully passed an international examination.
7
EUROPEAN UNION
Slovenia Welcomes EU Parliament's Rejection of Port Directive
The European Parliament's decision to reject plans to liberalise port services across the EU
is good for Slovenia's port Luka Koper, Jadran Luin of the Transport Ministry's Maritime
Directorate told STA
The European Parliament's decision on Wednesday, 18 January to reject plans to liberalise
port services across the EU is good for Slovenia's port Luka Koper, Jadran Luin of the
Transport Ministry's Maritime Directorate told STA.
"Slovenia has not supported the directive, as increased competition and foreign labour force in
Luka Koper would slow down further development of Slovenia's only port, because it is rather
small," Luin said.
According to him, the ministry expected the rejection. "We believe that big handlers mainly
supported the directive. They tend to interfere with the work of local authorities at the docks,
where the states encourage development and domestic labour force," he added.
The state, as the majority owner of Luka Koper, must strive for the port's development, Luin
also said, stressing that relations between Luka Koper and the state must first be settled.
After a new act on ports is adopted, we will perhaps think differently about opening up the
market to competition, he added.
The European Parliament voted 532-120 against the draft legislation, which proposed opening
cargo handling to competition in ports where loading and unloading is currently run by
monopoly handlers.
PM: Rejection of EU Budget by European Parliament Expected
Prime Minister Janez Jansa said that the decision of the European Parliament, which rejected
the EU's budgetary framework for the 2007-2013 period, came as no surprise
Prime Minister Janez Jansa said that the decision of the European Parliament, which rejected
the EU's budgetary framework for the 2007-2013 period on Wednesday, 18 January, came as
no surprise.
Taking into consideration the previously announced positions of deputy groups, such a
decision wan expected. Yet that does not mean that the budget deal is dead, Jansa said in
Ljubljana.
According to him, the budget framework will now undergo minor adjustments which will not
seriously affect the structure of the deal. There is no need to worry excessively about it, he
added.
The European Parliament rejected the EU financial perspectives for the 2007-2013 period "in
the current form" at its session in Strasbourg, and called for negotiations to reach the final
agreement on the budget.
EU Criticises Slovenia for Failing to Report Fish Catch
The European Commission has criticised Slovenia for having failed to send a single report on
its fishing catch, although it should report on it every month in accordance with EU fishing
rules
The European Commission has criticised Slovenia for having failed to send a single report on
its fishing catch, although it should report on it every month in accordance with EU fishing
rules.
8
"It is essential that member states report precisely, correctly and punctually on catches in EU
and other waters," the Commission said in its report, which was released in Brussels on
Thursday, 19 January.
The report includes information on new member states for the first time. Slovenia, Cyprus and
Malta were the only three countries failing to produce a single report - all other countries
reported at least in part.
Only Denmark, Sweden and Great Britain have filed regular monthly and quarterly reports,
with 10 more members sending monthly reports and a few submitting them quarterly.
The report also states that failure to respect the provisions on regular reporting can result in
the member state going to the Court of Justice of the European Communities in Luxembourg.
Drobnic Calls on Old EU Members to Lift Labour Restrictions
Labour Minister Janez Drobnic said he hopes that a number of old EU member states would
lift their restrictions for workers from new EU members as he attended an informal meeting of
EU labour ministers in Villach
Labour Minister Janez Drobnic said he hopes that a number of old EU member states would
lift their restrictions for workers from new EU members as he attended an informal meeting of
EU labour ministers in Villach on Friday, 20 January.
Addressing the press on the margins of the meeting, Drobnic would not say which countries
he would most like to see lift restrictions on labour from new EU member states, among them
Slovenia.
"Slovenia continues to underscore its wish for openness, for the free movement of services
and labour. Slovenian poses no threats to other countries; other countries are not a threat to
Slovenia," he said.
According to him, Slovenia hopes that some old EU members would open their labour
markets to workers from Slovenia as early as this year.
Apart from Austria and Germany, who have shown no readiness to lift restrictions, other old
EU member states have expressed willingness to debate the lifting of restrictions, Drobnic
said.
However, Slovenia has entered into talks with Austria on possible exceptions to the
restrictions, such as in the tourism and education sectors.
Meanwhile, EU labour ministers stressed the need to bolster the social dimension of the EU at
their meeting. A high level of employment is the best social policy, said Austrian Social
Affairs Minister Ursula Hauber, who is hosting the meeting.
Her view was echoed by Drobnic, who said that the right to work is the basic social right for
everyone. He said that Europe needs to take measures to create a more flexible labour market.
The meeting saw demonstrations by Austrian trade unions, which were also joined by trade
unionists from Italy and Slovenia, who called for the protection of workers' rights.
9
STATISTICS/FORECASTS
Net Wages up 10.5% in November
An average net salary in Slovenia stood at SIT 196,071 (EUR 818.2) in November
An average net salary in Slovenia stood at SIT 196,071 (EUR 818.2) in November, up 10.5%
over October and 9.5% year-on-year, according to Slovenia's Statistical Office.
The average gross salary per employee rose 12.3% on the month to SIT 313,965 (EUR
1,310.2) in November, which is 9.1% more than a year ago.
In real terms, November's gross salary was up 12.9% over October and 6.9% over November
2004.
In the first eleven months of 2005, the average gross salary rose 5.3% to SIT 276,073 (EUR
1,152).
Jobless Rate at 10.3% in November
A total of 93,932 unemployed persons were registered in November, which is 0.3% less than
in October and up 3.3% year-on-year
The jobless rate remained level in December 2005 compared to the month before, at 10.3%,
according to the Statistical Office. The ILO standards-based unemployment rate was also
level, averaging 6.3% in the last quarter of 2005.
A total of 93,932 unemployed persons were registered in November, which is 0.3% less than
in October and up 3.3% year-on-year.
The unemployment rate stood at 8.6% for men and 12.4% for women in November, the
Statistical Office said on Tuesday, 17 January.
Slovenia's labour force numbered 911,241 in November, with 818,309 persons in paid
employment, up 0.1% on October and 0.7% more than in the same month in 2004.
In October, 670,058 people were employed in companies and other organisations, which is
0.9% more than a year ago, while the number of self-employed topped 82,100.
The sole proprietors employed 66,151 persons, down 0.3% year-on-year.
The number of registered farmers dropped by 5.5% over the year before, to 31,365.
Reforms Don't Go Far Enough, Economist Says
The reforms being proposed by the government are not sufficiently radical, especially as
regards privatisation, a leading liberal economist has said
The reforms being proposed by the government are not sufficiently radical, especially as
regards privatisation, a leading liberal economist has said.
Speaking at panel staged by the Nova Gorica regional chamber of commerce on Tuesday, 17
January, Mico Mrkaic said the government's proposal fell short in measures aimed at
lessening the state's grip on the economy.
In line with the current proposal, politicians would continue to have a key say in important
sectors, he claimed.
"The proposed privatisation lacks resolve; enterprise should be given freer reign," the
professor at the Kranj Faculty of Organisational Sciences said.
Mrkaic, who used to head the government's Strategic Development Council before stepping
down over differences with the government in mid-2005, said that Slovenia should implement
flat tax.
However, given the prevailing public opinion, it is more likely that a system of three tax
brackets, as proposed by a team led by economist Marko Kranjec, would be implemented, he
said.
10
LJSE Annual Turnover Down 30% in 2005
The total turnover on the Ljubljana Stock Exchange (LJSE) in 2005, excluding block deals,
amounted to SIT 138.8bn (EUR 579.34m)
The total turnover on the Ljubljana Stock Exchange (LJSE) in 2005, excluding block deals,
amounted to SIT 138.8bn (EUR 579.34m), a 30.6% drop on 2004. The major indices fell
accordingly, except for the bond BIO index, the LJSE said in its annual statistical report.
The SBI 20 benchmark index lost 5.6%, finishing in positive territory for only five months
last year. The worst month for the blue chips was June, when they experienced a 5% drop,
while January was the most successful month, when the SBI 20 gained 4.8%.
Similarly, the investment fund PIX index fell 12.2%, with January as its most upbeat month.
Meanwhile, the bond BIO index managed to end 2005 in positive territory, gaining 0.9% in
over the end of 2004.
The share of the year 2005 was undoubtedly pharmaceutical company Krka, with deals worth
SIT 26.7bn (EUR 111.44m). It was followed by retailer Mercator (SIT 10.7bn/EUR 44.66m),
fuel trader Petrol (SIT 10.5bn/EUR 43.82m) and home appliance maker Gorenje with a
turnover of SIT 5.1bn (EUR 21.28m).
Among bonds, the 2nd issue of the Restitution Fund (SOD) bonds saw deals worth SIT
12.3bn (EUR 51.33m).
Krka was the standout performer among blue chips, surging 21.1% in 2005, followed by
Petrol (up 7.3%). Brewer Pivovarna Lasko and publisher Delo both gained 3.4% year-onyear.
On the losing side, logistics company Intereuropa plummeted 28%, followed by bread and
pasta maker Zito (22.7%), tourism and food group Istrabenz (18.4%) and Ljubljana airport
operator Aerodrom (15.5%).
The market capitalisation of all securities on the stock exchange on 31 December 2005 was
SIT 1,604bn (EUR 6.69bn) down 5.9% year on year. The market capitalisation of bonds
increased by 31%, largely as a result of new listings, while that of investment funds
plummeted by 34%.
Government Takes Measures to Boost Phasing of EU Funds
The reallocations and granting of additional phasing rights will result in SIT 11bn (EUR
45.9m) in extra funds
The government has taken financial measures to optimise the phasing of EU structural funds.
The reallocations and granting of additional phasing rights will result in SIT 11bn (EUR
45.9m) in extra funds.
Most of the extra funds will be earmarked for measures under the National Development
Strategy and the Lisbon Strategy, the government said in a press release following a session
Thursday, 19 January.
An extra SIT 4bn (EUR 16.7m) will be funnelled into projects for the technical development
of small and mid-sized enterprises this year, with an additional SIT 2bn (EUR for 8.35m) for
the promotion of innovation.
Some SIT 5.5bn (EUR 23m) will be available for the development of tourist destinations and
SIT 2.1bn (EUR 8.8m) for the training and education in the corporate sector.
The government said it had taken these measures despite a significant improvement in fund
phasing since last year: by the end of 2005 the state published tenders for SIT 68bn (EUR
283.8m), or 87% of the available funds.
According to the press release, these measures are crucial if the country is to use all available
funds for the 2004-2006 programming period.
11
The measures mean that the bulk of the funds will be used by the end of 2006, so Slovenia
can focus in 2007 on activities that it will define in operational programmes for the next
programming period.
12
FINANCE
Petrol Prices Rise
The price changes are in line with the new petrol pricing model, which the government
introduced on 11 October 2005
Petrol prices went up at midnight with excise duties remaining unchanged. Regular unleaded
petrol costs SIT 227.6 (EUR 0.95) per litre, up SIT 7.6, while the price of premium unleaded
increased by SIT 7 to SIT 230.7 (EUR 0.96).
The price of diesel rose SIT 1.8 to SIT 220.8 (EUR 0.92) and heating oil is SIT 2.2 dearer at
SIT 142 (EUR 0.59) per litre, Slovenia's largest fuel trader, Petrol, has said.
The price changes are in line with the new petrol pricing model, which the government
introduced on 11 October 2005.
Prices are calculated over a period of 28 days, whereby the five highest and lowest quotations
over the four-week period are excluded.
The government introduced the model (which expires on 8 July 2006) in order to cushion the
impact of volatile global oil prices on domestic retail prices.
Meanwhile, a leading Slovenian economist has downplayed the impact of the latest petrol
hike on inflation. According to France Krizanic of the Ljubljana Economics Faculty, Slovenia
should not have difficulties meeting the inflation criterion for eurozone membership because
he expects the effects to be limited.
EBRD Interested in Privatisation of Slovenian Second Largest Bank
The European Bank for Reconstruction and Development (EBRD) is interested in taking part
in privatising Slovenia's second largest bank, the Nova kreditna banka Maribor (NKBM)
The European Bank for Reconstruction and Development (EBRD) is interested in taking part
in privatising Slovenia's second largest bank, the Nova kreditna banka Maribor (NKBM), the
EBRD head Jean Lemierre told the daily Delo on Tuesday, 17 January.
However, for the EBRD to take part, the government has to pledge to go all the way with the
privatisation, Lemierre added. On the other hand, if the cabinet wants to keep the NKBM in
the hands of the state, then it does not need the EBRD, he explained.
Indeed, the EBRD plans to invest several hundred millions of euros in Slovenia during the
next couple of years, depending on the government's decisions and the speed of the planned
second wave of privatisation, he told Delo.
According to Lemierre, the government also has to decide on the future of Slovenia's No.1
bank, the Nova Ljubljanska banka (NLB).
"The EBRD is well aware of all the possible outcomes and will adjust to the government's
decision...If there is a need for us to remain as shareholders in the bank we will gladly discuss
that", he explained.
The EBRD's president also called for an efficient NLB as well as hopes that the government
will be able to hammer out a deal with NLB's major owner, Belgian banking group KBC,
which wants to increase its over 30% stake in NLB.
The EBRD is also pondering on entering the national telco Telekom Slovenije, but again only
if suitable privatisation plans are drafted and set into motion.
Moreover, the EBRD is ready to invest into the Slovenian energy sector with direct loans for
renovating and upgrading the national grid and investments into power production
capabilities.
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PM Janez Jansa and Finance Minister Andrej Bajuk have meanwhile called on the EBRD to
help Slovenia in establishing a hedge fund. The fund, aimed at increasing the amount of
money for investment, would be at first worth between EUR 20m and 40m.
The EBRD, whose mission is to aid in the transition into a market economy, has been an
important lender in Slovenia's private and public sectors since 1993. By the end of 2005, it
signed agreements for 46 projects, worth a total of EUR 580m.
Slovenia has achieved considerable progress in its transition, however "several issues remain
to be resolved in the private sector, while the public sector needs to be modernised," Lemierre
also told Delo.
The EBRD is thus set to continue investing in the country, but only for a few more years, said
Lemierre.
The EBRD president visited Slovenia the previous week, discussing the modernisation of the
banking sector, the privatisation of the telco, railway infrastructure projects and possible
projects in the energy sector with several Slovenian officials.
LHB Frankfurt Rated as Stable
The LHB Frankfurt bank has been assigned the long-term credit rating BBB- by international
rating agency Fitch Ratings
The LHB Frankfurt bank has been assigned the long-term credit rating BBB- by international
rating agency Fitch Ratings. This grade means that the bank's credit rating is stable, according
to the press release from LHB Frankfurt.
The Frankfurt-based subsidiary of Slovenia's leading bank, Nova Ljubljanska banka (NLB),
deals mostly with corporate banking, with emphasis on small and medium-sized companies.
The key business markets, besides the Slovenian and German ones, are the countries in SE
Europe (Croatia, Bosnia and Herzegovina, Serbia and Montenegro, and Macedonia).
LHB Frankfurt believes that its rich experience in the above markets has contributed a great
deal to the rating, which takes into account the typical level of risk involved in developing
markets.
This is the first time LHB Frankfurt has received an international credit rating.
Pension Institute Finishes Year in Black
Slovenia's Pension and Disability Insurance Institute (ZPIZ) concluded 2005 with a surplus of
SIT 100m (EUR 417,292)
Slovenia's Pension and Disability Insurance Institute (ZPIZ) concluded 2005 with a surplus of
SIT 100m (EUR 417,292), ending a long streak of negative balance sheets in recent years.
According to ZPIZ director Marijan Papez, who spoke to the press in Ljubljana on
Wednesday, 18 January, the institute generated revenues of SIT 877.2bn (EUR 3.7bn) against
expenses of SIT 877.1bn (EUR 3.7bn).
Papez added that the ZPIZ also adopted the budget and a business framework for the coming
two years, with revenues projected at SIT 929bn (EUR 3.88bn) for 2006 and at SIT 989bn
(EUR 4.13bn) for 2007.
As the main goals for 2006 he outlined a positive balance sheet, smooth processing of
insurance claims, and better results in the field of international insurance.
The euro changeover and the project of a birth and debt register that will bring the
introduction of e-business are also among ZPIZ's priorities for 2006.
Papez also announced that because of the euro changeover in 2007 the payments of this year's
final pensions could come as early as 22 December.
14
EUR 33m Available for Eco Loans This Year
Companies and individuals will be able to vie for about SIT 8bn (EUR 33.4m) that the
Slovenian Eco Fund will have at its disposal this year for low-interest loans for
environmentally-friendly investments
Companies and individuals will be able to vie for about SIT 8bn (EUR 33.4m) that the
Slovenian Eco Fund will have at its disposal this year for low-interest loans for
environmentally-friendly investments.
Loans will be available for investments to help companies adapt to new ecological standards,
to fund public utility infrastructure and help individuals in their investments in energyefficient technologies and renewable energy sources, Environment Minister Janez Podobnik
told the press on Wednesday, 18 January.
The bulk of the funds for this year (SIT 4.5bn/EUR 18.8m) will be allocated for efficient
energy use and renewable energy, with SIT 1.23bn (EUR 5.13m) available for individuals and
the rest for companies, explained Podobnik, the head of the fund's supervisory board.
Last year the fund approved loans worth SIT 9.3bn (EUR 38.82m), with the bulk of the
money going to companies. Funds for next year will be on par with this year's.
NLB Expects to Lose EUR 8.35m due to Euro Changeover
According to Savo Dinjaski, who is the head of the euro project at NLB, the bank will try to
cover the loss by expanding its presence on foreign markets
Slovenia's largest bank, Nova Ljubljanska banka (NLB), estimates it will lose SIT 2bn (EUR
8.35m) of non-interest revenues in foreign exchange transactions due to Slovenia's euro
changeover in 2007, Savo Dinjaski of NLB told the press on Wednesday, 18 January.
According to Dinjaski, who is the head of the euro project at NLB, the bank will try to cover
the loss by expanding its presence on foreign markets.
"Preparation costs for the adoption of the euro represent a large part of the bank's revenues or
profit," Dinjaski continued. NLB expects significant expenses, especially during the testing
period, for communication networks and marketing, he said.
In December, Dinjaski told the press that SIT 8.9bn (EUR 37.15m) was spent in 2005 for the
necessary upgrades to the bank's IT system related to the euro changeover, while a further SIT
9.5bn (EUR 39.65m) will be spent this year.
Although the total costs the bank will incur cannot be gauged yet, Dinjaski said that about
30% to 40% of the IT investments are being set aside for that purpose.
However, in his words, "direct analyses are for now not showing any positive effects of the
changeover". This is an extremely expensive and logistically demanding project, which will
involve around 800 people, he added.
The testing period will according to Dinjaski begin in mid February, with information system
being tested by the end of summer 2006.
EBRD Interested in Privatisation in Slovenia
The European Bank for Reconstruction and Development (EBRD) has said it was willing to
invest several hundred million euros in privatisation projects in Slovenia, where is already
has investments worth a total of EUR 588m
The European Bank for Reconstruction and Development (EBRD) has said it was willing to
invest several hundred million euros in privatisation projects in Slovenia, where is already has
investments worth a total of EUR 588m.
If the government wishes that we take part in the privatisation, we are willing to invest, the
head of the EBRD representation office for Slovenia, Francois Lecavalier, told the press in
Ljubljana on Thursday, 19 January.
15
Lecavalier expects that privatisation procedures would be launched in 12 to 18 months, or else
they will not take place at all. The government is doing its job in building a consensus, so it
can be expected to take appropriate decisions, he said.
According to him, it is time that the government start trimming down its shareholdings in a
gradual and controlled manner. It should let other investors in and create new jobs with this
fresh capital, he said.
The EBRD would like to take part in the privatisation of the Nova Kreditna banka Maribor
(NKBM), Slovenia's second largest bank, and the fixed-line telco Telekom Slovenije.
The bank's participation in pre-privatisation procedures could be a sign to potential investors
that the projects will indeed be carried out, he said.
Lecavalier believes the government is serious about privatising Telekom, a project that has
been talked about for years. Indeed, the EBRD was about to sing a pre-privatisation project
with the government in 1995, but the deal was cancelled at the last moment.
As for the NKBM, one possible scenario would be an EBRD-supplied capital increase of 5%
to 10%, which would give the bank fresh capital. At the same time, the NKBM shareholders
management and the EBRD would make a commitment to draft a performance strategy for 12
to 18 months.
This would create a more successful bank; moreover, in the event of a public offering, the
state would thus get more money and attract shareholders who would treat their NKBM stakes
as a long-term investment, according to Lecavalier.
As for NLB, the country's largest bank, where the EBRD has a 5% stake, Lecavalier reiterated
that the EBRD was waiting for an agreement between the state and the strategic partner,
Belgian banking group KBC.
The NLB's strategy is to become a major regional player, so it needs fresh capital; the final
decision on the EBRD's role depends on the shareholders, he said.
Fund to Dispense EUR 43.5m for Enterprise Promotion in 2006
According to Economics Minister Andrej Vizjak and director of the Enterprise Fund Boris
Pfeifer, around half of the total will be used for non-refundable grants to SMEs
The Enterprise Fund has earmarked SIT 10.412bn (EUR 43.5m) for projects by small and
medium sized business in Slovenia, officials told the press in Maribor on Friday, 20 January.
According to Economics Minister Andrej Vizjak and director of the Enterprise Fund Boris
Pfeifer, around half of the total will be used for non-refundable grants to SMEs.
The grants will primarily be made available for the acquisition of new technologies and startups, Vizjak told the press.
The rest of the funds will be used for providing cheap loans and guarantees for enterprises, he
added.
The Fund expects to back around 275 projects during the year with a total value of around SIT
20bn (EUR 84m).
According to Vizjak, the Fund is looking to launch new services in the future, with focus on
supporting start-ups in business hatcheries and establishing a risk capital fund.
Vizjak said that the Enterprise Fund was one of the most important instruments the ministry
has at its disposal to directly promote enterprise in the country.
The Fund is to publish the first call to applications for funds following government
confirmation of its spending plan, which is expected in the coming days.
Last year the Fund handed out SIT 7bn (EUR 29.2m) in cheap loans and SIT 3.3bn (EUR
13.8m) in grants, endorsing 245 projects by small and medium-sized companies.
Ljubljana Stock Exchange
The benchmark SBI 20 shed 2.56 points to 4,617.39
16
Pharmaceutical company Krka continues to defy the overall lacklustre mood on the Ljubljana
Stock Exchange. Whereas the benchmark SBI 20 shed 2.56 points to 4,617.39, Krka closed
over 4% higher on the week despite a drop of over 1% on Friday, 20 January.
On deals worth SIT 2.9bn (EUR 12.1m), over one third of the week's turnover, Krka closed at
SIT 109,979 (EUR 459.01), up 4.36%.
Other major blue chips did not have such a successful week: oil trader Petrol was down 0.73%
to SIT 70,012 (EUR 292.23), with retailer Mercator, the biggest loser this week, shedding
1.82% to SIT 37,314 (EUR 155.75).
Logistics company Intereuropa capitalised on the appointment of a new management, adding
1.17% to SIT 5,329 (EUR 22.24). The company will be headed by Andrej Lovsin, an
entrepreneur and former head of the Defence Ministry's intelligence department.
Publisher Delo might be the share to look out for next week, as the supervisory board took the
long-expected step of appointing Danilo Slivnik, the new Delo board member and former
editor of right-leaning weekly Mag, the new chief executive.
Next week will also see the eagerly expected listing of conglomerate Autocommerce:
2,886,877 shares with a nominal value of SIT 2.89bn (EUR 12.06m) will be listed under the
symbol ACLG.
Apart from blue chips, the action on the stock market was quite slow this week. Nevertheless,
the PIX investment fund index added 28.57 points to 3,971.02, with the bond BIO index
edging 0.64 points lower to 106.72.
Deals wrapped up last week were worth SIT 5.68bn (EUR 23.7m), with block deals
accounting for over a third of the turnover.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.58 (-0.01)
U.S. dollar (USD) - SIT 198.46 (-0.32)
Swiss franc (CHF) - SIT 154.48 (-0.30)
British pound (GBP) - SIT 349.45 (-1.65)
17
REGIONAL INFORMATION
Fig Growing in Istria to Be Revived
Slovenian and Croatian researchers are set to revive fig growing in the border region of
Istria in a two-year project worth some EUR 195,000
Slovenian and Croatian researchers are set to revive fig growing in the border region of Istria
in a two-year project worth some EUR 195,000 that was presented to the press in the
Slovenian city of Koper on Monday, 16 January.
"Fig growing has always been a part of every Istrian's life," said Klavdij Starc of a local
society from the village Smokvica, which is another name for a fig. He said that 120 fig trees
would be planted in February as part of the project.
The project aims primarily at revitalising and promoting two important Mediterranean
cultures, olives and figs, stressed project manager Milena Bucar Miklavcic, and added that
they would be promoted as typical Istrian products.
Bucar Miklavcic also believes that "the increase in fig production along with the production
of Istrian olive oil will make the local economy more stable".
The project dubbed "revitalisation of fig cultivation in Istria" is considered to be a turning
point in fig growing, according to Dino Pucer of the Slovenian Society of Olive Growers in
Istria (DOSI), which presented the project.
The project will be carried out in co-operation with several Slovenian institutions, including
the University of Primorska, the Slovenian Chamber of Agriculture and Forestry, and
Croatia's partner, the University of Rijeka.
The initiative is part of the INTERREG III crossborder cooperation between Slovenia,
Hungary and Croatia.
Analysis Finds Poor Business Cooperation in Gorisko Region
Cross-border cooperation of small and medium-sized enterprises (SMEs) in the area around
Slovenia's Nova Gorica and Italy's Gorizia leaves a lot of room for improvement, according
to an analysis conducted by Gorizia-based Slovenian Economic Association
Cross-border cooperation of small and medium-sized enterprises (SMEs) in the area around
Slovenia's Nova Gorica and Italy's Gorizia leaves a lot of room for improvement, according to
an analysis conducted by Gorizia-based Slovenian Economic Association.
The results, presented at a news conference in Gorizia on Friday, 20 January, revealed that
while workers from across the border are commonplace at companies based in Italy, they are
not present on the Slovenian side of the border.
Both sides are lacking technically skilled personnel and have similar plans with regard to
future employments, with the Italian side planning an increase of its current number of
employees by a third and the Slovenian by a fourth.
All companies encompassed in the survey are ready to expand their operations across the
border, those based in Italy because of easier access to workers, and those in Slovenia because
of easier access to EU markets.
According to Joze Elersic, the head of the cooperation project, many companies are already
cooperating with their neighbours, the mutual support, however, is not based on long term
business integration.
Mirjam Bozic, director of Slovenia's Northern Primorsko Chamber of Commerce and Industry
of Slovenia, which also assisted in the analysis, said that SMEs in the region would only be
able to compete in the global market if they joined forces. A strengthening of the cooperation
is thus needed, according to Bozic.
18
For this purpose, The Slovenian Economic Association has already drawn up a number of
initiatives, including a monthly paper on the issue and the establishment of a business help
service which could evolve into a cross-border help office.
19
BRANCH INFORMATION
Watchdog Preparing 3G Tender
The telecommunications watchdog has told STA that it is preparing a public tender for thirdgeneration mobile telephony, which it plans to publish in the first half of 2006
The telecommunications watchdog has told STA that it is preparing a public tender for thirdgeneration mobile telephony, which it plans to publish in the first half of 2006.
The Agency for Post and Electronic Communication (APEK) is already drafting the necessary
documentation and the proposal for the license fee, which must be approved by the
government.
The agency intends to grant three 3G licenses at the most, APEK said on Tuesday, 17
January.
Checking interest in 3G licenses in November, APEK received responses from mobile
services provider Debitel, Slovenia's no. 2 mobile operator Simobil, and telecommunications
companies Voljatel and T-2.
In November 2001, Slovenia's biggest mobile operator Mobitel received the first licence for
third generation services. Mobitel is still the only mobile operator in Slovenia to offer UMTS
services, which it launched commercially in December 2003.
Publishers Concerned about Effect of Flat Tax Rate
The income of large Slovenian publishers would halve if a flat tax rate is introduced,
according to a survey carried out by publishers and book sellers and revealed to the press in
Ljubljana
The income of large Slovenian publishers would halve if a flat tax rate is introduced,
according to a survey carried out by publishers and book sellers and revealed to the press in
Ljubljana on Tuesday, 17 January.
Medium-sized publishers would just about be breaking even, small publishing houses,
magazines and weeklies would be in the red, and the income of dailies would fall
dramatically, according to the same survey.
The Association of Publishers and Book Sellers at the Chamber of Commerce and Industry of
Slovenia (CCIS) said they would present the results in greater depth once they received the
details of the possible effects of a flat tax rate on the publishing market.
The Association simulated the effect of the flat tax rate on small publishing houses (there are
78 of them in Slovenia), medium-sized publishing houses (5 of them), one of the two large
Slovenian publishers, as well as weeklies, dailies and magazines.
The Association has been waiting for answers since June 2005; in autumn they asked the
Ministry for Culture to provide information from the Economics Ministry on preparations for
the flat tax rate and how it would affect Slovenian publishing and book-selling.
Publishers stressed that they did not oppose reforms, but they wanted them to be carried out
"with responsibility and respect for the Slovenian written word and Slovenian authors".
The Printing and Media Association at the CCIS has formed a negotiating group which is
prepared to enter talks with the government and help it reach the best possible solutions, said
its president Mitja Zupancic.
Zupancic also stressed that the problem did not lie in wages being too high but rather that the
publishing sector was undeveloped and legislation on publishing and book-selling was
unregulated, bringing about a scattered market.
The publishers and book sellers would not like to see problems caused by a flat tax rate being
countered with subsidies, which can never replace a healthy book market.
20
Flat Tax Would Exert Severe Pressure on Food Industry
An analysis by two leading economists has found that the food industry would come under
severe pressure if the flat tax rate, a cornerstone of the government's proposed reform
package, were to be introduce
An analysis by two leading economists has found that the food industry would come under
severe pressure if the flat tax rate, a cornerstone of the government's proposed reform
package, were to be introduced. The introduction of a 20% flat tax would reduce producer
prices by between 4% and 10%, the analysis concludes.
The impact would be asymmetrical: the producers would have to bear the brunt of the price
pressure, while the impact on consumers would be modest, explained on Wednesday, 18
January, Mico Mrkaic, the author of the analysis alongside Ales Kuhar.
Speaking to the management board of the Association for Food Industry at the Chamber of
Commerce (CCIS), Mrkaic added that any attempt to divert the price pressure to the primary
sector would erode supply resources.
According to him, dairies would be hit hardest; due to the market specifics, they cannot push
the price pressure down the line.
The analysis suggests the flat tax would raise retail prices by up to 6%. However, due to a
presumed lack of supply elasticity, the impact may be smaller: up to 2% for bread and meat
products, and less than 1% for milk.
Moreover, the analysis suggests that the price hike would curb end-demand by 1% to 5%.
As an overall result, the food industry would see revenues shrink by up to 10%, according to
Mrkaic.
The expected gains from a reduction, and eventual abolition, of the payroll tax are not nearly
big enough to compensate for the loss of revenue, the analysis concludes.
In the debate following the presentation, food industry executives agreed that companies in
the sector do not have the reserves to counter the anticipated effects.
The sector as a whole is in the red already; with the introduction of a flat tax rate, even wellperforming companies might get in trouble, according to Matjaz Pegam, the director of
beverage producer Vina Brezice.
Despite bleak assessment by food industry executives, Mrkaic and Kuhar said that excessive
pessimism is out of place, as the debate on the flat tax has only just begun.
Mrkaic said that the food industry might come up with an alternative proposal. He named a
"more serious" property tax as one possible example.
Similarly, the association of bus companies at the CCIS said that a 20% flat tax rate would
make bus services too expensive, as the companies could not possibly divulge the burden of a
11% price hike.
Sea Motorways a Priority Project, Official Says
The European sea motorways project, a part of the trans-European transport network (TENT), is one of the most important EU projects in the period until 2020
The European sea motorways project, a part of the trans-European transport network (TENT), is one of the most important EU projects in the period until 2020, State Secretary at the
Transport Ministry Peter Verlic said on Thursday, 19 January.
The TEN-T project includes the construction of a transport network to enable free flow of
people and goods, the establishment of sea routes, roads and ports, while achieving high
safety standards, said Verlic at a panel on motorways of the sea held at the seaside resort of
Portoroz.
Slovenia lies on the fifth and tenth trans-European transport corridors. The government has
already placed a section of the fifth corridor between Koper (W) and Hodos (NE) on its list of
priorities, he added.
21
Indeed, the cabinet has allocated SIT 18.3bn (EUR 76.38m) for transport infrastructure
projects by 2020, Verlic explained.
Port of Koper official Gordan Ban meanwhile said that the port has valuable experience in
dealing with international sea transport companies, while it is well connected to the
hinterland.
However, the port lacks piers, moorings, parking places and facilities for lorry drivers. Its
weak points are also complicated customs and administrative procedures, Ban added.
He also pointed to transport infrastructure-related bottlenecks, adding that for the sea
motorways to really come alive in Slovenia, the port of Koper has to become more widely
known as a transport hub.
Within the TEN-T project Europe is divided into four sea motorways: Baltic, Western,
Southeastern and Southwestern, with Luka Koper being ideally positioned for transports to
Central and Eastern Europe countries, explained Ales Zabukovec of the ministry.
The one-day panel entitled "Sea Motorways - Preparations and Activities in Slovenia" was
sponsored by the country's sole maritime port, Luka Koper.
Government Adopts Decree on 2006 Agriculture Policy Measures
The government has adopted a decree implementing the agricultural policy measures for
2006, which serves as a basis for the phasing of SIT 31bn (EUR 129.4m) in funds for
agricultural policy measures
The government has adopted a decree implementing the agricultural policy measures for
2006, which serves as a basis for the phasing of SIT 31bn (EUR 129.4m) in funds for
agricultural policy measures.
Presenting the decree on Thursday, 19 January, Agriculture Minister Marija Lukacic said that
one of the major novelties was the change of the basic reference unit.
Instead of the plot as defined in the land registry, the ministry will use aerial imaging-based
units (known by their Slovenian acronym GERK) broken down for each farm holding
depending on the type of actual use.
Applications for subsidies will be possible only on the basis of these units, Lukacic explained.
The term for applications has been extended from 45 days to two months and a half (from 1
March to 15 May) following criticism of short deadlines last year, she said.
Tourists from Hotter Parts Enjoying Snow in Slovenia
With its abundance of snow, this winter has produced a real wonderland perfect for the
enjoyment of nature
With its abundance of snow, this winter has produced a real wonderland perfect for the
enjoyment of nature. It is attracting not just the locals but also people from countries with no
snow to indulge in activities like walking, skating, Alpine and cross-country skiing.
Particularly attractive are the popular Slovenian tourist resorts Bled and Bohinj, with their
snow-covered landscapes, surrounded by snow-capped peaks and partly frozen-over lakes.
Tourists visiting Bled and interested in winter sports, far outnumber those who come
primarily for the health resort facilities, the STA was told by the Bled council for the
promotion of tourism, Turizem Bled.
British tourists are most numerous but they are not the only ones coming from a country with
virtually no ski-resorts of its own. Bled, with almost 90% of Winter tourists coming from
abroad, is also playing host to Greeks and Australians.
While western parts of the Gorenjska region have not seen this much snow for a long time,
the temperatures have not been low enough for the surface of the lake to freeze over entirely,
and enable safe skating and walking.
22
The lake in Bohinj has a thicker covering of ice but is equally dangerous to walk on. This is
why the tourists prefer to go skiing at the large skiing centres of Vogel, Kobla or Soriska
Planina, explains the Bohinj tourist association.
Efforts have been made in the past years to cater also for non-skiers, with activities such as
cross-country skiing and sledging on specially prepared tracks. Afterwards tourists can warm
themselves in the water park in Bohinj.
Slovenia's Wine Association Plans Breakthrough to Foreign Markets
The primary task of the Commercial Union for Viticulture and Wine of Slovenia in the next
three years is to increase the popularity of Slovenian wines abroad
The primary task of the Commercial Union for Viticulture and Wine of Slovenia in the next
three years is to increase the popularity of Slovenian wines abroad, the union's head Dusan
Brejc has recently told STA.
The aim of the union is to put Slovenia on the world wine map, as "the quality of Slovenian
wine has never been as high as it is now", Brejc added.
However, the country's winegrowers can only succeed abroad through marketing and unified
approach, he explained.
Moreover, the 38-strong union will get a new trademark and a new name, to be decided upon
at the union's AGM that is to take place in March, Brejc said.
According to the union, Slovenia produces some 100 million litres of wine per year, with just
over 16,000 hectares of vineyards registered in the country.
The data also shows that between 52 million and 54 million litres are sold in Slovenia, while 5
million litres are exported and the rest is sold on the black market.
The biggest export markets for Slovenia are the US, Croatia, Bosnia-Herzegovina, SerbiaMontenegro and Germany with dry and bottled wines presenting the largest chunk of exports.
Slovenians on average consume 27 litres per person every year, the statistical data also shows,
however, experts estimate the unofficial figure as even higher.
23
COMPANIES
Simobil Ends Year With 22.7% of the Market
Slovenia's second-largest mobile operator, Simobil, ended 2005 with 359,600 users
Slovenia's second-largest mobile operator, Simobil, ended 2005 with 359,600 users, for a
market share of 22.7%, Simobil's parent, Telekom Austria, said on Monday, 16 January.
The figure represents a drop of 1% on the year before, mostly because of changes in the
method for keeping user figures, Telekom Austria added.
Telekom Austria said Simobil's end-year results were "excellent" and that the number of users
grew by 10,600 in the final quarter.
As of the end of 2005, Simobil has 176,700 subscribers and 182,900 users of its pre-paid
packages.
"Simobil is satisfied with 2005 operations, especially since we have managed to improve the
quality of our user base. This was the first year that we have seen positive steps on the market,
and we expect authorities to keep working on protecting competition," Simobil said on
Monday, 16 January.
The company is expected to report 2005 business results in the coming weeks.
Turkish Airlines Expects Strong Demand for Istanbul Flight
The new Ljubljana-Istanbul route, launched on 16 January by Turkish Airlines is to carry
around 30,000 passengers annually, Halil Tokel of Turkish Airlines and Vinko Moze of
Aerodrom Ljubljana told the press
The new Ljubljana-Istanbul route, launched on Monday, 16 January by Turkish Airlines is to
carry around 30,000 passengers annually, Halil Tokel of Turkish Airlines and Vinko Moze of
Aerodrom Ljubljana told the press.
According to Tokel and Moze, who spoke to the press after Turkish Airlines first plane landed
at a little after 3 PM, the new route is of great importance for the development of Brnik
airport, run by Aerodrom Ljubljana, as well as for the Slovenian and Turkish tourism
industries.
The new Boeing 737-800 plane with 165 seats will fly every Monday, Tuesday and Saturday
between Brnik and Istanbul's Ata Tuerk airport. Turkish Airlines will thus join Slovenia's flag
carrier Adria Airways in operating regular flights between Ljubljana and Istanbul.
However, the two airlines are not to "steal" customers from one another, according to Jure
Meznarsic of Aerodrom Ljubljana. "Our experiences show that offering another flight to the
same destination only increases the number of passengers," he added.
Meznarsic pointed to the low-fare carrier EasyJet which led to as many as 144,000 clients
flying to London from Ljubljana in 2005, while only 45,000 passengers were transported to
London and back before EasyJet's arrival in May 2004.
"The services of the new carrier, which also opened a branch office at Brnik, will especially
be interesting for businessmen and tourists travelling to Asia," Moze is convinced. Turkish
Airlines has good onward connections to most of the Balkan states as well as the Middle and
Far East.
At the same time, Moze hopes foreign tourists will take these flights in order to visit Slovenia.
Tokel meanwhile stressed that the recent cases of bird flu in Turkey should not affect the
number of passengers. "Turkish authorities have everything under control, therefore, tourist
are not in danger," he said.
24
Turkish Airlines, one of top ten airlines in Europe with 83 planes transporting 14 million
passengers a year to 107 destinations, is the eighth carrier to operate regular flights to Brnik
airport.
Aerodrom Ljubljana plans to increase the presence of foreign airlines in the future. It is
already in talks with budget airline Wizz Air, which is to fly from Brnik to two new
destinations either in Benelux or Scandinavian countries.
Mercator to Build Shopping, Residential Centre in Zagreb
The project is part of Mercator's aim to expand on the markets of the former Yugoslavia
Mercator, Slovenia's leading grocer, has signed a EUR 10m contract with Croatian
construction company Tehnika on the construction of a large shopping and residential centre
in Zagreb.
The "Ljubljanska" centre, as the project has been dubbed, will be located in an uptown section
of Zagreb, the Croatia business weekly Business.hr reported on its website on Monday, 16
January.
According to the weekly, this will be Mercator's first centre in Zagreb. Apart from the
shopping section, the centre will also have a residential section.
The centre is to have a total of 38,000 sq. metres of residential and shopping areas, with half
of that made up of a car park.
The project is part of Mercator's aim to expand on the markets of the former Yugoslavia.
Major Trimo Owners Re-Launch Takeover Bid
A consortium of five major owners of Trimo, the Trebnje-based maker of pre-fabricated
construction components, have re-launched their bid to buy out minority shareholders after
their initial bid petered out due to time constraints
A consortium of five major owners of Trimo, the Trebnje-based maker of pre-fabricated
construction components, have re-launched their bid to buy out minority shareholders after
their initial bid petered out due to time constraints.
The bank Probanka, its leasing arm Probanka Leasing, investment firms Medaljon and Zlata
moneta 2, and Trimo Investments, which own some 42% of Trimo, announced their intention
in late November 2005.
Yet they backed down in December, saying that it was impossible to harmonise their interests
and make the necessary filings at the Securities Clearing Corporation (KDD).
The companies have now tweaked the original shareholder agreement and will publish a
formal takeover bid within 30 days as required by law, Zlata Moneta 2 director Peter Zoric
told STA on Tuesday, 17 January.
In the shareholder agreement, the bidders have altered the allocation of shares they are set to
acquire, and consequently the division of the money required to complete the acquisition, he
explained.
Zoric refused to name the price per share that they will offer in the bid, which is endorsed by
the Trimo management.
Andrej Lovsin Appointed New Intereuropa Chairman
The company's supervisory board elected Lovsin for a five-year term
Andrej Lovsin, a businessman and former head of the Defence Ministry's intelligence
department, has been appointed the new chairman of Koper-based logistics company
Intereuropa.
The company's supervisory board elected Lovsin for a five-year term on Tuesday, 17 January,
Intereuropa spokesperson Damjana Jerman told STA. Zvezdan Markezic, currently a manager
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at the company, was named deputy chairman while the works council is expected to appoint
the third and last board member shortly, she said.
Intereuropa is one of Slovenia's largest logistics companies, employing 2,800 workers. The
group, which has branch offices in 12 European markets, is in mixed ownership: port operator
Luka Koper is the biggest owner with 25%, followed by financial institutions (24%) and small
shareholders (14%).
Adria Supervisors Endorse Plan for Lease of New Jets
The supervisory board of flag carrier Adria Airways has given the management the go-ahead
to lease an Embraer 120 cargo plane as part of efforts to restructure the fleet
The supervisory board of flag carrier Adria Airways has given the management the go-ahead
to lease an Embraer 120 cargo plane as part of efforts to restructure the fleet, which is blamed
for the record losses at the company last year.
If the plane fulfils the company's expectations, Adria would proceed to lease a passenger
version of the Embraer 120, supervisory board chairman Branko Grosl told STA on Tuesday,
17 January, a day after the supervisory board meeting.
The cargo plane is to be deployed in the first half of January. If Adria finds that the type of jet
is not appropriate for passenger transport, the second jet on lease from Aurora Airlines will
also be used for cargo transport, he said.
Moreover, Adria representatives have recently met with managers of Canadian plane maker
Bombardier (most of Adria's fleet is composed of its Canadair CRJ-200 Regional Jets) to
discuss the lease of a bigger, 70-seat version of the jet.
The new management board of Adria has put fleet overhaul at the top of the restructuring
agenda. Acting chairman Iztok Malacic has criticised the current fleet of two Airbus A-320
planes with 162 seats and eight Canadair CRJ-200 Regional Jets with 48 seats each.
He has said Adria needs aircraft with 70 to 120 seats. Both Airbuses are to be leased out;
Grosl said there is considerable interest from foreign carriers.
According to Malacic, Adria last year posted revenues of SIT 32.8bn (EUR 137m), with net
losses standing at around SIT 2bn (EUR 8.3m).
Luka Koper Happy with Rejection of Port Directive
Slovenia's lone seaport Luka Koper has joined numerous European ports in welcoming
decision of the European Parliament to reject plans to liberalise port services across the EU,
the Slovenian company told STA
Slovenia's lone seaport Luka Koper has joined numerous European ports in welcoming
decision of the European Parliament on Wednesday, 18 January to reject plans to liberalise
port services across the EU, the Slovenian company told STA.
Luka Koper moreover said that the most prominent maritime experts, who attended the
international meeting on docks and logistics in Slovenia's coastal town of Portoroz in October
2005, also opposed the directive.
If passed, the directive would have jeopardised social security and lead to the ports being
subordinated to handlers, Luka Koper is convinced. "With the directive on port services, the
ports would have become only one of the system's element controlled by the handlers," the
company explained.
The European Parliament voted 532-120 against the draft legislation, which proposed opening
cargo handling to competition in ports where loading and unloading is currently run by
monopoly handlers.
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Focus on Expansion to Markets of Former Yugoslavia, Era Boss Says
Retailer Era will focus on expanding to the markets of the former Yugoslavia after it sold its
retail network in Slovenia and Croatia to Slovenia's largest retailer, Mercator, chairman of
the Velenje-based company Gvido Omladic told the daily Finance
Retailer Era will focus on expanding to the markets of the former Yugoslavia after it sold its
retail network in Slovenia and Croatia to Slovenia's largest retailer, Mercator, chairman of the
Velenje-based company Gvido Omladic told the daily Finance on Thursday, 19 January.
Omladic told the business daily that Era wanted to expand in Macedonia, Kosovo and
Montenegro, while it also has plans to start retail networks in other SE European countries,
such as Albania.
Era's vision is based on strengthening niche retail programmes, developing its retail network
abroad, selling office equipment, offering business services and organising trade fairs, said
Omladic, who expects the new strategy will bear first results in the next two years.
The Era group plans to employ some 350 people in Slovenia and generate SIT 14bn (EUR
58.43m) in revenues. Together with its subsidiaries in Montenegro, Macedonia, Kosovo and
Croatia the number of employees will rise to 500 and revenues to SIT 18bn (EUR 75.13m).
Chief Lek Supervisor Claims Lek Is Successful Company
Pharmaceutical company Lek has been, it is, and we believe that it will remain a successful
company in the future, CEO of generics pharmaceutical Sandoz and head of Lek's supervisory
board Andreas Rummelt told the press
Pharmaceutical company Lek has been, it is, and we believe that it will remain a successful
company in the future, CEO of generics pharmaceutical Sandoz and head of Lek's supervisory
board Andreas Rummelt told the press on Thursday, 19 January in Basel.
More important than Lek's business results as an independent company is its share on
individual markets and its contribution to the overall business results of Sandoz, the generics
unit of Lek's owner Novartis, Rummelt added.
He also denied plans of any mass layoffs at Lek, explaining that the planned expansion of
Lek's operations mean that the company would have to employ more people, especially in the
fields of development, biopharmacy, information technology and production.
However, minor redundancies are expected in administrative sectors due to Sandoz's
restructuring and in areas with a surplus of workers, he added, mainly because Lek would not
become Sandoz's regional hub for Eastern Europe. The role would be taken by Germany's
Hexal, which was acquired in 2005 by Sandoz, Rummelt explained.
Future of Slovenia's Sole Sugar Factory Still Uncertain
The fate of Slovenia's lone sugar factory in Ormoz (NE) will be decided in two weeks' time
The fate of Slovenia's lone sugar factory in Ormoz (NE) will be decided in two weeks' time,
head of Tovarna sladkorja Ormoz Jurij Dogsa told STA on Thursday, 19 January.
The agreement on finding a joint solution in two weeks at the latest was taken at a meeting
between the company's owners and Agriculture Ministry officials, Dogsa added.
The agreement was also confirmed by the factory's supervisors, who met in Ljubljana, even
though the management expected that the supervisors would take a final decision on future
sugar beet processing and sugar production in Ormoz.
Meanwhile, Agriculture Minister Marija Lukacic refused to reveal to the press the details of
the meeting on Wednesday, 18 January, saying the decision now rests with the company's
supervisors and its assembly.
Lukacic said that a press conference would be staged as soon as the sugar producer makes its
final decision, explaining that the negotiations were aimed at keeping the full scale of sugar
production.
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The majority owners of the Ormoz sugar factory are Dutch food group Cosun (60%) and
Italian sugar producer SFIR (20%).
The owners see several obstacles to keeping the production intact: the lack of suitable sugar
growing areas and a 2002 agreement signed between the EU and SE European states under
which the latter can export sugar to the EU free of duties and other charges.
Moreover, the European Commission adopted a sugar reform in November envisaging a 36%
decrease in sugar prices in the course of the next four years. Under the reform, sugar growers
are to be compensated for the loss of income by a direct subsidy worth 64.2% of the price
drop.
Steel Group Expects Level Performance in 2006
The Slovenian Steel Group expects net profits of SIT 4.4bn (EUR 18.4m) on sales of SIT
110bn (EUR 495.1m) in 2006
The Slovenian Steel Group expects net profits of SIT 4.4bn (EUR 18.4m) on sales of SIT
110bn (EUR 495.1m) in 2006, according to a 2006-2011 strategy paper that the company's
supervisory board reviewed on Thursday, 19 January.
The figures are level with preliminary projections for 2005 made by chairman Tibor Simonka
in mid-December 2005.
The figures are based on a presumed decline in purchase prices, slower demand and the
resulting pressure on producer prices, the company's press release reads.
The company expects to maintain the present unit output and relatively high margins, which
however will be lower than last year due to the cooling market.
By 2011, the group expects sales to top SIT 132bn (EUR 551m), with average net profit of
SIT 4.8bn (EUR 20m).
Investments in the period are to average EUR 34.7m per year.
Retailer Engrotus to Employ 900 in Macedonia
Slovenian retailer Engrotus plans to open 23 new supermarkets in Macedonia in the next
three years
Slovenian retailer Engrotus plans to open 23 new supermarkets in Macedonia in the next three
years, creating some 900 new jobs. The investment is valued at EUR 61m, head of the Celjebased retailer Aleksander Svetelsek told STA on Thursday, 19 January.
According to Svetelsek, the company plans to open the first supermarket as early as 2006,
however, could not give a definite location due to complicated procedures necessary to obtain
construction permits.
Engrotus plans to open supermarkets in all large Macedonian cities, as well as build a
logistics facility to supply its retail network.
One of the largest Slovenian retailers wants to construct a total of 40 supermarkets in
Macediona as well as a "Planet Tus" mall, which would house a supermarket and various
other shops, as well as a cinema.
Kapital Gives Out Awards for Best Mutual Funds
Financial magazine Kapital has selected Obiettivo America Latina of Italy's Sanpaolo IMI
Asset Management best mutual share fund in 2005
Financial magazine Kapital has selected Obiettivo America Latina of Italy's Sanpaolo IMI
Asset Management best mutual share fund in 2005. Kombinirani sklad of Slovenia's NLB
Skladi was chosen No. 1 in the mixed category, and the award for the best bond fund was
received by Bonds Europe Asset Backed Securities A of SGAM Luxembourg.
The assessment of mutual funds copied similar practices abroad, Kapital explained in a press
release on Thursday, 19 January. The aims of the assessment are to achieve greater market
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transparency, to emphasise that past returns must not be the sole criteria governing the choice
of mutual funds, and to promote saving.
The mutual funds were assessed for the second year running by a group of independent
experts and included all mutual funds officially registered for trading in Slovenia on 31
December 2005 which had traded for at least a year up to this date.
Assessment took into account profitability and stability as the main criteria. If two funds
gained the same number of points, then yield was also taken into account as an extra criterion,
Kapital added.
The awards were given out at a special ceremony in Ljubljana on Thursday, 19 January.
Packaging Manufacturer Gets New Management Board
Besides appointing the new supervisory board, the shareholders also decided to delist
Saturnus Embalaza from the Ljubljana Stock Exchange (LJSE)
The supervisory board of packaging manufacturer Saturnus Embalaza elected a new threemember management board on Thursday, 19 January appointing Alessandro Dazza the
company's chairman.
Dazza of the Austrian packaging maker Vogel&Noot Verpackungstechnik, which has recently
taken over the Slovenian company, has replaced Zvonko Zepic, who nevertheless remains on
the management board. Vogel&Noot's boss Friedrich Nitsche is the third member.
At their constitutive session, the supervisors also appointed Benjamin Kosat the president of
the supervisory board. He is the head of the chemistry and metallurgy company Treibacher
Schleifmittel from Ruse (NE).
The supervisors met after Saturnus Embalaza shareholders held their first AGM on 19
January.
Besides appointing the new supervisory board, the shareholders also decided to delist
Saturnus Embalaza from the Ljubljana Stock Exchange (LJSE). The LJSE has accordingly
stopped all trading in Saturnus shares.
Former Mag Editor Appointed Chairman of Delo
The supervisory board of Slovenia's leading newspaper company, Delo, has named the former
editor-in-chief of right-leaning weekly Mag, Danilo Slivnik, to head the company's
management board
The supervisory board of Slovenia's leading newspaper company, Delo, has named the former
editor-in-chief of right-leaning weekly Mag, Danilo Slivnik, to head the company's
management board.
The appointment was made at a session of the supervisory board on Friday, 20 January, the
first since three new supervisors were elected to the six-member board in late December.
It has been revealed that the previous chairman Tomaz Perovic tendered his resignation at the
session.
Slivnik was originally appointed to Delo's management board in October. Not long after, Delo
acquired Mag and asset management firm KD Group - whose chairman is thought to be an
ally of the government of Janez Jansa - bought nearly 20% of Delo.
Slovenia Selects London Law Firm for NEK Arbitration
The government has decided to hire London-based law firm Allen&Overy in the dispute with
Croatian power utility HEP over undelivered electricity from the Krsko nuclear power plant
(NEK)
The government has decided to hire London-based law firm Allen&Overy in the dispute with
Croatian power utility HEP over undelivered electricity from the Krsko nuclear power plant
(NEK).
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The recommendation has been made by a government working group in charge of the NEK
arbitration procedure, the Economics Ministry said in a press release on Friday, 20 January.
HEP launched the arbitration procedure at the International Centre for Settlement of
Investment Disputes late last year.
The Croatian grid operator wants EUR 31.7m in compensation for the power it says Slovenia
failed to deliver from 1 July 2002, when Croatia ratified the agreement, to 18 April 2003,
when Slovenia started supply electricity from NEK to Croatia.
Slovenia believes that the damage claim is excessive and that Croatia has also included a
period during which it asked for a deference in the start of supply.
The two countries signed an agreement on the status of the jointly-constructed NEK in 2002
with which they confirm they are equal owners of the Slovenian-based plant, and settle a
number of past disputes regarding the facility.
Lek Boss Puts Number of Redundancies at 40 to 50
Job cuts will be made across all of Lek's departments with the exception of R&D and
biopharmaceuticals, where new openings should appear
The chairwoman of Ljubljana-based pharmaceutical company Lek has said that the company
plans to cut around 40 to 50 jobs this year.
Janja Bratos made her remarks in response to news that this subsidiary of Swiss pharma giant
Novartis's generics unit, Sandoz, was planning layoffs.
"The number of job cuts is expected to stand at between 40 to 50, but is not final as there will
be up to 50 new openings at the company," Bratos told the press in Ljubljana on Friday, 20
January.
Layoffs will be made across all of Lek's departments with the exception of R&D and
biopharmaceuticals, where new openings should appear, she said.
The majority of the employees have been informed of the planned staff restructuring and there
are efforts to include some of those who will lose their jobs in the new hirings, Bratos said.
According to her, the company will also resort to early retirement for a number of the planned
layoffs.
Talks are underway on the severance package for those whose employment contracts would
be terminated, Bratos explained.
This would be a second wave of layoffs at Lek, which was acquired by Novartis in late 2002 last year the company reduced its workforce by 194 to 2,843.
The staff restructuring is a consequence of restructuring at Sandoz, Bratos said, adding that no
Slovenian facilities would be shut down as a result.
She explained that most of the restructuring had been carried out in 2005, but that the process
would continue in the coming years.
Sandoz, she said, had given Lek the role of a supply centre for central and eastern Europe.
She denied suggestions that Lek's role in Sandoz was being diminished. According to her,
investment activity shows that Lek is a key pillar of development at Sandoz, carrying out a
quarter of all research and development in the group.
Meanwhile, chief financial officer Anette Weber revealed that Lek's operating profit dropped
18% to US$ 101m in 2005. The company generated sales revenues of US$ 657m, up 0.4% on
the year before.
"The business results are good and are in line with expectations," Bratos said. She added that
Lek generated 14% of all of Sandoz's sales.
The bulk of the sales, US$ 529m, was generated with prescription medication, while over-thecounter drugs (US$ 75.2m) and other sales (US$ 52.3m) made up the rest.
Sales in Slovenia accounted for 10.2% of all of Lek's sales. The biggest geographic market
was that of Eastern and Central Europe, making up for 52.3% of all sales.
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Moreover, the US remained the single-largest Lek market, while Russia was the fastestgrowing market, with sales growth of nearly 41%.
Holding Autocommerce Will List on the LJSE
After years of preparations the conglomerate Autocommerce will finally list on the Ljubljana
Stock Exchange (LJSE) on 24 January, in a move the company's CEO Herman Rigelnik
labelled as signalling the end of its ten-year restructuring period
After years of preparations the conglomerate Autocommerce will finally list on the Ljubljana
Stock Exchange (LJSE) on Tuesday, 24 January, in a move the company's CEO Herman
Rigelnik labelled as signalling the end of its ten-year restructuring period.
After announcing already in 2003 that Autocommerce's shares would list on the LJSE, the
company finally submitted the necessary papers to the LJSE in June last year, receiving a
clearance earlier this month to list 2,886,877 shares worth SIT 2.89bn (EUR 12.06m).
However, according to Marko Garbajs, a stock market expert at the management firm Ilirika
"the stocks will not be too popular, as the company's ownership structure is quite closed
already".
Autocommerce's major owner is the Protej company, set up by Autocommerce managers in
2005. By November Protej owned 75.31% of Autocommerce.
Therefore Garbajs believes that a "better time to list on the LJSE would have been some two
years ago, when Autocommerce's share was on the rise".
Meanwhile Autocommerce boss Herman Rigelnik said nearly two weeks ago that the LJSE's
approval to list the company's shares presents an important turning point for Autocommerce.
He has also voiced criticism against the dispersed shareholder structure at many Slovenian
companies, which he says is the worst thing that an executive has to deal with.
"Just look as what is happening because of replacements at the top! Instead of dealing with
development, managers are preoccupied with building defence walls against the state,"
Rigelnik told the supplement of the daily Dnevnik on Saturday, 21 January.
The Autocommerce conglomerate consists of 39 companies, operating in five areas, namely
car sales (AC-Intercar, Avto Triglav, AC-Mobil), investment banking, IT (Perftech), hotel
management (Grand hotel Union) and manufacture (Adria Mobil).
In 2004 the group generated revenues of SIT 94bn (EUR 392m), however, managed to
surpass the figure already in the first ten months of 2005 with SIT 101.7bn (EUR 424m) in
revenues.
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SLOVENIA IN BRIEF
Slovenian Ambassador Meets Croatian Foreign Ministry Official
The new Slovenian Ambassador to Croatia Milan Orazen Adamic discussed bilateral relations
with Croatian Foreign Ministry State Secretary Hido Biscevic on Monday, 16 January in
Zagreb. The pair called for constructive dialogue between the countries.
Government Proposes Separate Insurance Company Restructuring Law
The government adopted changes to the act on health insurance on Monday, 16 January
envisaging the adoption of s special law that would give the insurers of Slovenia's only mutual
insurance company, Vzajemna, a say in the restructuring of the insurer into a joint stock
company. The new act's proposal, adopted at the government's correspondence session, also
lays out changes to Vzajemna's statute and sets the election of representatives into its
assembly scheduled for 1 May this year.
FM Rupel Congratulates New Israeli Foreign Minister
Foreign Minister Dimitrij Rupel has sent his congratulations to Tzipi Livni, the new Israeli
foreign minister, the Foreign Ministry said on Wednesday, 18 January. Rupel expressed his
wish to preserve and upgrade the friendly relations and fruitful cooperation between Slovenia
and Israel, the ministry added.
Government Appoints UK Ambassador Permanent Representative to the IMO
The government has appointed Iztok Mirosic, Slovenia's Ambassador to the UK, the country's
permanent representative at the International Maritime Organisation (IMO), the Government's
PR and Media Office said on Thursday, 19 January.
FM Rupel Sends Condolences to Slovak Counterpart
FM Dimitrij Rupel sent his condolences on Friday, 20 January to his Slovak counterpart
Eduard Kukan over the accident of a Slovak transport military aircraft which crashed in
Hungary.
President Drnovsek in Bolivia
President Janez Drnovsek has been received with state honours in Bolivia, where he arrived to
attend the inauguration of new Bolivian President Evo Morales, the president's office said on
Friday, 20 January.
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