Slovenia Business Week no. 10, March 7th, 2005
Table of Contents:
HEADLINES ...................................................................................................................................3
Telekom Privatisation Topping Economics Ministry Agenda .....................................................3
Steel Plant and Foundry to Boost Competitiveness with Partnership ..........................................4
D&B: Slovenia on Course to Become First New EU Member in Eurozone ...............................4
INTERNATIONAL COOPERATION ............................................................................................4
Bosnian Delegation Discusses Open Issues with National Council.............................................4
Prodi Decorated for Efforts in Slovenia's EU Bid ........................................................................5
EUROPEAN UNION ......................................................................................................................7
Slovenia Wants to See Big Companies Get Rural Development Funds ......................................7
Slovenians Believe in Common Agriculture Policy.....................................................................7
EU Should Give More Cohesion Funds to Cities, Simsic Says ...................................................8
Slovenia Ranks High in Terms of Employment in EU, Drobnic Says .........................................8
Government to Boost the Drawing of EU Funds .........................................................................9
Potocnik: Research Programmes Must Contribute to Lisbon Goals ............................................9
STATISTICS/FORECASTS .........................................................................................................11
Fuel and Food Prices Push Up Inflation .....................................................................................11
ILO-Measured Unemployment at 6.4% in Q4 ...........................................................................11
General Government Deficit at 1.9% GDP, Debt at 29.4% GDP in 2004 .................................11
Slovenia's Price Competitiveness Less Weak in 2004 ...............................................................12
FINANCE ......................................................................................................................................13
NKBM Posts Higher Profit, Falls Short of Asset Target ...........................................................13
Probanka Sees 20% Increase in Profit ........................................................................................13
Slovenica Makes Profit in 2004 .................................................................................................13
Insurer Vzajemna Incurs Loss, Wants to Expand Its Business ..................................................14
Government Wants to Appoint New NKBM Supervisors .........................................................14
Former LJSE Chairman Sees Mixed Future for Newcomers' Financial Markets ......................15
Raiffeisen Krekova Banka Pleased with 2004 ...........................................................................15
Ljubljana Stock Exchange ..........................................................................................................15
Foreign Exchange .......................................................................................................................16
REGIONAL INFORMATION ......................................................................................................17
Government to Earmark EUR 20M of Funds for Pomurje ........................................................17
PM Says Government Plans to Bridge Development Gap in Pomurje ......................................17
Government Wants Local Communities to Help Address Structural Problems ........................18
Minister Promises to Help Pomurje Economy with Concrete Measures ...................................18
Pomurje Mayors and Businesses Want Equal Treatment of Regions ........................................18
BRANCH INFORMATION ..........................................................................................................20
Ministry Set to Draft a New Transport Policy Document ..........................................................20
Slovenian Fashion Design on Display in Venice .......................................................................20
COMPANIES ................................................................................................................................22
Dragonja Leaving Lek for Russia, Bratos to Succeed Him .......................................................22
Kolinska Profits Slump as Sales Target Missed .........................................................................22
Mlinotest Reports 37% Profit Drop............................................................................................22
Intereuropa's Results Above Expectations .................................................................................23
Luka Koper Increases Profits .....................................................................................................23
Ljubljana Airport Company Reports 12% Rise in Net Profit ....................................................23
Droga's Profit Down 25%...........................................................................................................24
Etol’s Sales Revenues Increase by 3.8 percent ..........................................................................24
Bankruptcy Protection of Nafta Lendava Confirmed by Higher Court .....................................25
Terme Catez Spa Posts Net Profit of EUR 2.8m ........................................................................25
Luka Koper Must Follow Environmental Standards, Minister Says ..........................................26
BTC Reports 40% Jump in Profits .............................................................................................27
Emona Obala Remains in the Red ..............................................................................................27
Glassworks Gets China Business ...............................................................................................27
Labour Ministry Provides Funding for Preservation of Mura Jobs............................................28
Portal of Online Hotel Booking Launched .................................................................................28
OMV Istrabenz Becomes OMV Slovenija .................................................................................29
SLOVENIA IN BRIEF ..................................................................................................................30
Slovenia's Donation to ITF SIT 89.7m in 2005..........................................................................30
Prodi and PM Jansa Discuss EU's Development .......................................................................30
Ministry Promises Active Employment Policy Measures ..........................................................30
Rupel Briefed by Locals on Problems along Croatian Border ...................................................30
Economic and Social Council Confirms Work Permit Quota for Foreigners ............................30
NEK Commission Endorses Decommissioning Plan .................................................................30
Rupel Calls on UN Security Council to Utilise OSCE ..............................................................30
Kosovo Dominates Rupel's Meeting with Annan ......................................................................31
Triglav AGM to be Held on 6 April ...........................................................................................31
HEADLINES
Telekom Privatisation Topping Economics Ministry Agenda
The ministry will also be focusing on energy market liberalisation and on curbing inflation
Providing competition on electronic communications market and drafting a privatisation strategy
for Telekom Slovenije will top the agenda of the Economics Ministry this year. The ministry will
also be focusing on energy market liberalisation and on curbing inflation, Minister Andrej Vizjak
told the press as he unveiled his agenda on Tuesday, 1 March. Vizjak announced that the
ministry would draft a privatisation strategy for the national telco, Telekom Slovenije, and
provide greater liberalisation on the electronic communications market. "This is a key move
before the privatisation of Telekom. If Telekom keeps a major monopoly, privatisation will bring
along negative effects for the users, which we do not want," the minister explained.
Providing competition on the electronic communications markets will be the priority of the
ministry's directorate of electronic communication, Vizjak said. A market analysis and measures
will be presented as early as March, he said, adding that the measures would also aim at
preventing a long-term dependency of subscribers on one operator. Vizjak believes such
commitments hinder competition on the market.
Vizjak expects great interest of European telecommunications giants in the privatisation of
Telekom. However, he said the government would not rush with the privatisation as it first wants
to regulate the domestic market.
Another priority will be to reduce inflation rate to a level that will meet the Maastricht criteria in
the part that refers to controlled prices. Another important goal will be the act on double price
tags.
As for entrepreneurship and competition, the ministry will draft a programme of measures for the
period between 2007 and 2013, while great attention will also be paid to the relationship between
economy and science, the encouragement of entrepreneurship and technical sciences, as well as
the promotion of innovative environment and competition.
Vizjak announced that the ministry would not directly support companies through competitions,
but would rather focus on creating the conditions for the development of entrepreneurship and
competition.
He announced changes to the act on state aids to ailing companies. He said state funds would be
allocated for programmes that open new opportunities, are development-oriented,
technologically advanced and create a high value added.
"I believe that direct aids or injections increase the passivity of receivers. What I also find
important is to set up supervision over used funds," stressed Vizjak, adding that the government
had not yet approved any new state aid in three months since it assumed office.
More attention will be paid to small and mid-sized companies with a high value added, which
will show the potential of creating new jobs, promoting innovative environment and cooperation
with science and research institutions.
The ministry will continue with the liberalisation of energy markets, which also includes the
establishment of a second energy pillar, Vizjak announced. Despite a formal liberalisation of
most of the electricity market, Slovenia actually lags behind other EU member states.
A final reorganisation of the energy system will aim at making it comparable to the systems in
developed EU member states. The ministry will also boost competition in natural gas and
electricity markets, and start privatisation procedures in the electricity production sector.
Another prime goal in the energy sector is providing reliable and sustainable electricity supply in
the country. Vizjak pointed out fresh investment in production and distribution capacities.
Twelve key items on the agenda of the Economics Ministry for this year also include the
establishment of a system for the participation of the Slovenian economy in NATO projects with
the aim of including Slovenian companies in the NATO supply system. The ministry would like
to prevent Slovenia becoming a net contributor to NATO.
Among other goals, the ministry will file changes to the act on the Slovenian Chamber of
Commerce and Industry (CCIS). The ministry believes that CCIS incomes depend to heavily on
membership fees rather than on market revenues, and advocates a reduction of incomes from
membership fees, Vizjak told the press.
Steel Plant and Foundry to Boost Competitiveness with Partnership
Steel plant Metal Ravne and foundry Mariborska livarna have signed an agreement on long-term
strategic cooperation, in a bid to combine know-how and improve their competitive edge abroad
Steel plant Metal Ravne and foundry Mariborska livarna have signed an agreement on long-term
strategic cooperation, in a bid to combine know-how and improve their competitive edge abroad.
The first result is joint work in the production of Ravnex, high performance steel which is made
by Metal, and the manufacture of tools for the automotive industry, according to Livarna
Maribor chairman Branko Zerdoner.
"The strategic partnership is designed to combine Slovenian know-how and prove that we can
succeed in foreign markets," Metal Ravne director Darko Mikec told the press on Wednesday, 2
March.
According to Mikec, steel for tools must be able to withstand great loads so it is crucial to test it
appropriately. The exchange of information and the possibility to test steel in Slovenia is
essential, he stressed.
Certificates of testing results and joint development make it possible to sell this steel abroad
where nobody would allow us to test is, Mikec said.
Metal is expected to start selling the new steel in the summer. The company sells 90 percent of
the production abroad, in particular to the EU, US and Asia.
D&B: Slovenia on Course to Become First New EU Member in Eurozone
International rating firm Dun&Bradstreet (D&B) believes that Slovenia is on course to meet
convergence goals and become the first of the new EU entrants to join the eurozone despite the
EU's warnings about the risk of budget expenditure overrun
International rating firm Dun&Bradstreet (D&B) believes that Slovenia is on course to meet
convergence goals and become the first of the new EU entrants to join the eurozone despite the
EU's warnings about the risk of budget expenditure overruns.
D&B believes that the economy is unlikely to slow significantly over the next two years. It
amended its GDP growth estimate up from 3.8% to 4% for 2004 and 2005, and from 3.9% to
4.2% for 2006. The estimates of other indicators remain the same.
In its report for March, D&B maintains Slovenia's risk rating at DB2c, the highest in Eastern
Europe. The risk report continues to bear a mark indicating that Slovenia's rating could be
upgraded in the coming months.
The rating firm also estimates that Slovenia's relations with neighbouring countries continue to
pose a small risk element. Here, the report refers to the latest hauliers' spat with Croatia.
INTERNATIONAL COOPERATION
Bosnian Delegation Discusses Open Issues with National Council
The speaker of the Bosnian upper chamber of parliament, Velimir Jukic, welcomed the
parliamentary cooperation between Slovenia and Bosnia and the value of Slovenian experience
on its path to the EU for Bosnia
Outstanding issues topped the agenda as a delegation of the upper chamber of BosniaHerzegovina parliamentary assembly met with National Council president Janez Susnik in
Ljubljana on Monday, 28 February. Susnik told the press that the talks touched on the unsolved
issue of Bosnian savers of the former Slovenian Ljubljanska banka bank, the absence of an
agreement on social insurance and the problems surrounding the construction of an Islamic
cultural centre in Ljubljana.
The speaker of the Bosnian upper chamber of parliament, Velimir Jukic, stressed that the
strategic goal of Bosnia-Herzegovina is to join the EU. He welcomed the parliamentary
cooperation between Slovenia and Bosnia and the value of Slovenian experience on its path to
the EU for Bosnia.
Jukic told the press that some of the open issues, which he believes can be solved, would be
solved in a forseeable future. Here he pointed to the issue of the savers of the now defunct
Ljubljanska banka, saying that Bosnia was interested in having this problem resolved.
Another subject of discussions were problems faced by Bosnian workers in Slovenia and their
rights. Jukic particularly stressed the need to help these people and respect their rights, be it
cultural, religious or any other that refer to their identity.
Susnik said that problems surrounding the construction of the Islamic cultural centre in Ljubljana
had not been directly addressed. He told the press that the issue should be discussed by a group
of experts dealing with open issues.
Talks wrapped up with the conclusion that a team of experts should be formed to deal with old
outstanding issues. A commitment was also made to strengthen political, economic, cultural and
other relations that would help Bosnia in its integration in the EU and NATO.
Economic cooperation was another issue on the agenda, with the Bosnian delegation pointing out
a deficit in the Bosnian trade balance with Slovenia. The ratio stood at 1 to 3.3, which was an
improvement from 1 to 15 in 1995, Susnik said.
Slovenia's exports to Bosnia totalled EUR 447m in 2004, while the value of imports from Bosnia
stood at EUR 134m. Slovenian officials said the Slovenian economy was not the only factor to
blame for the situation.
The talks also touched on joint investments of Slovenia in Bosnia, which have amounted to EUR
313m since 1995. Bosnian officials said that Slovenia's input should be higher, particularly in the
production rather than banking and institutions, as this would boost the economy within
preparations for the EU accession.
The Bosnian delegation also proposed a bilateral agreement on the avoidance of double taxation
to be signed as soon as possible. Also touched upon were the opportunities for Slovenia to
participate in the Bosnian privatisation.
The delegation of the House of Peoples, headed by Velimir Jukic, was also received by Speaker
of Slovenian Parliament France Cukjati. The Bosnian officials expressed the expectation that
Bosnia would become a member of the EU and NATO.
Cukjati said that the length of the path leading to its goal depended on Bosnia's political will.
"I'm confident that your country has that will," Cukjati said, according to a press release.
Prodi Decorated for Efforts in Slovenia's EU Bid
Before Prodi, the Order of Extraordinary Merit was also presented to former Enlargement
Commissioner Guenter Verheugen and EU's High Representative for the Common Foreign and
Security Policy Javier Solana
Slovenian President Janez Drnovsek has decorated former President of the European
Commission Romano Prodi with the Order of Extraordinary Merit for his support for Slovenia's
accession to the EU and its recognition in the international community. Prodi thanked for the
merit, saying it was the most he could imagine given the good relations. Now that the path
towards the EU has been completed, attention must be paid to the cooperation between Slovenia,
Italy and Croatia, Prodi said on the occasion, adding that cooperation should be strengthened in
the Adriatic area as well. He also highlighted that Slovenia was now facing an important task of
assuming the single European currency.
Drnovsek credited Prodi with great contributions in Slovenia's becoming a full-fledged member
of the European community and an important member of the international community. He also
acknowledged Prodi's credits in the development of friendly relations between Slovenia and Italy
in a period when Prodi was the prime minister.
Drnovsek drew attention to his first meeting with Prodi, when the two, then both prime ministers,
managed to find a solution to a dispute burdening the relations between the two countries. This
was the issue of "optanti", Italian citizens who left Slovenia and Croatia after WWII, and a
temporary blockade of Slovenia's EU accession, he explained.
The two officials back then established that the EU is both the future of Italy and Slovenia, that
the past must be left behind, and that one must look into the future with optimism, according to
Drnovsek, who believes that this message is topical also today.
Prodi said that attention must now be paid to the cooperation between Slovenia, Italy and
Croatia. "If we remain apart, we will remain a province and we will have to think about the past.
But if we join forces, we can think about the future and we will succeed," Prodi, who wrapped up
his two-day visit to Slovenia on Tuesday, 1 March, is convinced.
Speaking ahead of upcoming parliamentary elections in Italy, Prodi, now the head of the Italian
centre-left opposition, said he would foster that cooperation. He said the Slovenian national
decoration was an encouragement and moral obligation to continue in this direction.
Prodi received the Order of Extraordinary Merit for his achievements as the president of the
European Commission. Prodi was a great advocate of EU enlargement and the EU accession of
countries of Central and Eastern Europe, as he understood the historical importance of
overcoming borders in Europe. Prodi was also a big and understanding friend of Slovenia and
was acknowledged for his contribution in Slovenia's successful path towards the EU, according
to the president's office.
Before Prodi, the Order of Extraordinary Merit was also presented to former Enlargement
Commissioner Guenter Verheugen and EU's High Representative for the Common Foreign and
Security Policy Javier Solana.
EUROPEAN UNION
Slovenia Wants to See Big Companies Get Rural Development Funds
Slovenia believes that large food processing companies that employ over 250 people should also
be eligible to money from the new fund for rural development within the EU's next financial
perspective and not only micro, small and mid-sized companies
Slovenia believes that large food processing companies that employ over 250 people should also
be eligible to money from the new fund for rural development within the EU's next financial
perspective and not only micro, small and mid-sized companies. This is what Agriculture
Ministry State Secretary Franc But said in Brussels on Monday, 28 February. Speaking on the
side of a meeting of EU agriculture ministers, But said that large companies were essential for
raising competition, which will be one of the main goals of the new fund.
"Moreover, if large companies are excluded, all Slovenian dairies and about 80 percent of the
meat processing industry will not be eligible for these funds," But said on the sidelines of the
ministerial, which is also discussing key mechanism for the implementation of the 2007-2013
financial perspective.
A final decision on the establishment of the rural development fund can be passed only after an
agreement is reached on the next financial perspective, expected in June. An agreement will also
have to be reached on the rules to finance the common agricultural policy, which also foresees an
agricultural guarantee fund.
The state secretary also said that it had been agreed that the EU would donate fishing boats that
are not used to SE Asia in the wake of the deadly tsunami in December. Slovenia welcomes the
move, said But, adding that it cannot take part, since it does not have a fleet to offer.
Slovenians Believe in Common Agriculture Policy
Slovenians share the EU view, as 71 percent support the shift away from production-related
payments to direct subsidies for farmers and rural development
EU citizens support the Union's common agricultural policy, according to the latest
Eurobarometer survey, as 66 percent back the recent reforms. Slovenians share the EU view, as
71 percent support the shift away from production-related payments to direct subsidies for
farmers and rural development.
When the reform was in the making, the support was much lower, the survey notes. In Slovenia,
for example, approval was up 14 percentage points compared to 2002. Support for the agriculture
policy measures dropped in Portugal and Hungary but is still above 50 percent.
People are convinced that the main objective of farm subsidies is to provide a stable source of
income for the farmers, a view shared by 36 percent of EU citizens and 40 percent of Slovenians.
Other priorities according to the respondents include providing healthy produce (30% in the EU,
32% in Slovenia), and protecting the environment (25% in the EU, 23% in Slovenia).
Yet the citizens are less convinced about the success of these measures. Only 37% believe that
the EU is successful in achieving the first priority while 43% disagree. In Slovenia, the figures
are 51 and 35 percent, respectively.
The belief that the common agricultural policy ensures healthy food is much more deep-rooted:
57% agree and only 26% disagree. In Slovenia, as much as 57% agree that this objective is being
fulfilled and only 26% disagree.
Other objectives that were assessed more negatively as positively include the protection of small
farms (30% positive, 40% negative), promotion of regional development (37% each) and
improvement of life in the countryside (40% each).
The agriculture policy got good grades for adjusting to the wishes of consumers (43:34),
protecting European products (45:30), promoting diverse production (45:29) and promoting
biological farming (47:31).
EU Should Give More Cohesion Funds to Cities, Simsic Says
"If cities are to play a comprehensive role in implementing EU goals, adequate financial
resources must be allocated for cohesion policy," Simsic said in Brussels
Mayor of Ljubljana Danica Simsic has said that the EU's structural and cohesion policy should
pay more attention to and allocate more financial resources for European cities. "If cities are to
play a comprehensive role in implementing EU goals, adequate financial resources must be
allocated for cohesion policy," Simsic said in Brussels on Thursday, 3 March.
"Budget funds allocated to urban regions must be sufficient for major projects in a number of
cities and urban areas," Simsic said at the conference "Cohesion and the Lisbon Strategy: The
Role of the Regions".
She spoke on behalf of the Eurocities network, which associates 121 major European cities,
where over 20 percent of all EU population lives.
Cities play a key role in the EU as centres of economic development, which means that they also
play a key role in increasing economic competitiveness as well as social and territorial cohesion
of the EU as a whole, according to Simsic.
The advantage of cities must be used, said Simsic, adding that the urban dimension must be
made an important part of the core pillars of cohesion policy. She believes that cohesion policy
and regional programmes must support sustainable urban development measures.
Simsic spoke at the conference organised by the European Commission at which about 500
participants discuss the role of the regions in implementing a reformed Lisbon Strategy.
Slovenia Ranks High in Terms of Employment in EU, Drobnic Says
He particularly pointed to a low unemployment rate at between 6% and 7%, while some EU
countries face unemployment rates close to 20%
Slovenia ranks fairly high in terms of employment among the EU member states, Labour
Minister Janez Drobnic said in Brussels on Thursday, 3 March. He particularly pointed to a low
unemployment rate at between 6% and 7%, while some EU countries face unemployment rates
close to 20%.
Speaking on the sidelines of a meeting of EU employment and social affairs ministers, Drobnic
commented on the 2004/2005 employment policy assessment according to which Slovenia has
made only limited progress in implementing priorities.
The Joint Employment Report, which was released by the European Commission in January, was
confirmed by the ministers. The Commission observed in the report that Slovenia had made
limited progress in increasing the employment rate among those over 55, as the 23.5%
employment rate among this population segment places the country at the bottom among all EU
member states.
Drobnic said that this was indeed an area that required attention. He said that Slovenia would
consider the report's assessments and recommendations in drafting future guidelines.
The report showed that no EU member state had took into account all recommendations and met
all priorities, which is why employment has often been called Europe's Achilles heel.
A reformed Lisbon Strategy, which was discussed by the ministers, is expected to improve the
situation. Minister Drobnic said that the reform of the Lisbon Strategy must keep bringing the
economics, social and environmental policies together in a coherent policy that will be a
guarantee for the development of the EU.
Drobnic said he also highlighted at the meeting that free access to the labour market for all EU
citizens would help solve EU's problems with unemployment and the lack of qualified staff. He
drew attention to the labour market restrictions that some member states imposed ahead of 2004
EU enlargement.
Government to Boost the Drawing of EU Funds
The government passed a number of decisions to boost the drawing of money from the EU
structural funds, as it discussed a report on the drawing of funds from the Cohesion Fund on the
basis of the Single Programming Document in 2004
The government passed a number of decisions to boost the drawing of money from the EU
structural funds, as it discussed a report on the drawing of funds from the Cohesion Fund on the
basis of the Single Programming Document in 2004.
"The decisions are aimed at substantially boosting activities related to drawing money from the
structural and cohesion funds," Minister of Local Self-Government and Regional Development
Ivan Zagar told the press after the government session on Thursday, 3 March.
The subject was put on the government agenda as virtually no applications for structural funds
have been addressed to the European Commission so far and no money has been reimbursed
from structural funds for Slovenia as yet.
The reasons for sluggish drawing of funds lie in very complicated procedures, Zagar said. The
government will aim at having all funds available until 2008 to be drawn fully, he said.
According to the government report, SIT 57bn (EUR 238m) of structural funds were approved
for Slovenia from the EU budget for the 2004-2006 period. The country can draw the money
through projects carried out by ministries.
Until the end of 2004, SIT 17bn (EUR 71m) worth of projects were approved, contracts have
been signed for SIT 6.7bn (EUR 28m) worth of projects, and SIT 4bn (EUR 17m) were paid to
end-users.
SIT 46bn (EUR 192m) have been approved from the Cohesion Fund, with 20% to be allocated
for co-financing environmental and transport projects.
Potocnik: Research Programmes Must Contribute to Lisbon Goals
In order to deliver the Lisbon goals, an increase of the EU budget for science and research as
well as a rise in individual members' budgets are necessary, said EU Commissioner for Science
and Research Janez Potocnik in an interview for the Brussels bulletin EurActiv
In order to deliver the Lisbon goals, an increase of the EU budget for science and research as
well as a rise in individual members' budgets are necessary, said EU Commissioner for Science
and Research Janez Potocnik in an interview for the Brussels bulletin EurActiv. He also pointed
out that these funds should be properly managed.
In its next long-term budget, the EU plans to double the research budget. Potocnik said this
increase should be viewed from a wider perspective, taking into account its influence on the
society and economy in general. He said he is convinced all member states should agree with the
budget increase.
According to him, it is not simply the amount that matters, but also the structure of the finances.
He said it would make sense to lower the expenses for common agricultural policy by 10 percent
and invest that amount in the Lisbon agenda.
Potocnik pointed out it is necessary not only to increase public finances, but also private ones. To
increase private investments, however, adequate working conditions would be required for the
companies to remain in Europe.
The Seventh Framework Programme for Research and Technological Development, which is
now being prepared by the European Commission, is to contribute to delivering the Lisbon goals.
Potocnik said it would encompass more priorities than the sixth one, including space and
security.
In order to improve the present conditions in science, Potocnik suggested among other things
that creativity should be encouraged in schools, promoting an innovative and open approach.
Furthermore, the commissioner stated he is convinced that science should be brought closer to
the public.
STATISTICS/FORECASTS
Fuel and Food Prices Push Up Inflation
The annual inflation rate stood at 2.6 percent, up 0.4 percentage points over January
Dearer fuel and food are behind a rise in inflation in February, the first increase in the rate since
November last year, the Slovenian Statistics Office has said. The annual inflation rate stood at
2.6 percent, up 0.4 percentage points over January. The monthly rise in consumer prices
amounted to 0.6 percent, the office said as it presented its preliminary consumer price index
(CPI) figures for February on Monday, 28 February.
The 3 percent rise in fuel prices and the 1.2 percent rise in food prices were the main driving
forces behind the rebound in inflation, the office said.
The Statistics Office registered very few substantial price declines, with clothes and footwear
continuing to be the price group slowing overall inflation the most.
The latest rise in inflation comes after marked falls in December and January, when the rate
moved close to euro zone compatible levels.
ILO-Measured Unemployment at 6.4% in Q4
This is a 0.4 percentage point rise over the third quarter
Slovenia registered a 6.4 percent unemployment rate in the fourth quarter of 2004, according to
the results of the labour force survey based on ILO and Eurostat standards. This is a 0.4
percentage point rise over the third quarter. According to the Slovenian Statistics Office, the
country's labour force numbered 1,003,000 people, 938,000 of them in paid employment and
65,000 out of a job.
The unemployment rate stood at 5.7 percent among men and 6.4 percent among women. The
participation rate stood at 58.7 percent according to the survey, and the employment-topopulation rate at 54.9 percent.
According to the latest data on registered unemployment, the jobless rate was 10.4 percent in
December. This means that 90,728 persons were registered as unemployed by the Slovenian
Statistics Office.
General Government Deficit at 1.9% GDP, Debt at 29.4% GDP in 2004
The report compiled by the Finance Ministry in cooperation with the Statistics Office has been
sent to the European Commission, which will use it to examine whether Slovenia meets the
Maastricht convergence criteria
The current deficit of the general government sector in 2004 amounted to SIT 117.32bn (EUR
489m) or 1.9% of GDP and debt totalled SIT 1,823.94bn (EUR 7.61bn) or 29.4% of GDP, a
report compiled by the Finance Ministry in cooperation with the Statistics Office says. The
report has been sent to the European Commission, which will use it to examine whether Slovenia
meets the Maastricht convergence criteria. Slovenia currently meets the Maastricht criteria
according to which the ratio of government deficit to GDP must not exceed 3% and the ratio of
government debt to GDP must not exceed 60%.
The Statistics Office forecast for 2005 is that the deficit would amount to SIT 127.44bn (EUR
532m) and remain at 1.9% of GDP, while the debt is expected to rise to SIT 1,994.53bn (EUR
8.32bn) to 30.1% of GDP.
The report, which covers the 2001-2005 period, shows the deficit drop from 2.8% GDP in 2001
to 1.9% GDP. According to 2005 forecast, the greatest increase in deficit, from 1.8% to 2.7% of
GDP, is expected in the central government. Debt meanwhile increased from 28.1% GDP in
2001 to 29.4% GDP in 2004.
The data for 2004 and the forecast for 2005 were prepared by the Ministry of Finance in cooperation with the Statistics Office on the basis of available information for the previous year
and forecasts for the current year for the units of the general government sector, which are based
on adopted budget and financial plans.
Data for 2001-2003 period are the same as published in September 2004. Revised data for the
whole period will be published in September 2005 in a regular autumn report sent to the
European Commission.
Slovenia's Price Competitiveness Less Weak in 2004
A moderate rise of relative prices curbed the deteriorating trend of Slovenia's price
competitiveness last year, the government Institute for Macroeconomic Analysis and
Development (IMAD) has stated in its latest issue of "Economic Mirror”
A moderate rise of relative prices curbed the deteriorating trend of Slovenia's price
competitiveness last year, the government Institute for Macroeconomic Analysis and
Development (IMAD) has stated in its latest issue of "Economic Mirror".
According to the IMAD figures, the growth of domestic prices compared to the foreign ones
dropped from 4 percent in 2003 to 1.6 percent in 2004. The growth of relative prices of industrial
products, which was already stable at 1.5 percent in 2003, meanwhile stood at 1.9 percent in
2004.
As the nominal value of the US dollar over the euro continued to drop in 2004, the Slovenian
tolar strengthened in real terms compared to the principal OECD currencies (including euro, US
dollar, Swiss franc and British pound), although its growth was weaker than in 2003.
In comparison to the euro, the tolar dropped by 0.5 percent in real terms in 2004, while it gained
on 0.9 percent in 2003. If taking into account the deflator of relative prices of industrial products,
the tolar actually stagnated in 2003.
Similar to the year of 2003, the growth of Slovenia's market shares in its 15 major trade partners
was rather modest in the first ten months of 2004. The country's market share dropped for a
second year in a row in Germany, Poland and the Czech Republic, and also turned downward in
Italy, Slovakia and Hungary.
On the other hand, Slovenia increased its shares on the markets of France and Croatia after the
2003 decline, and continued to see a growing market share in Austria and Russia. The country
also reported a major increase in Belgium and Spain, which used to be minor trade partners, the
IMAD reports.
FINANCE
NKBM Posts Higher Profit, Falls Short of Asset Target
Slovenia's second largest bank, Nova Kreditna banka Maribor (NKBM), generated SIT 5.96bn
(EUR 25m) in pre-tax profit last year
Slovenia's second largest bank, Nova Kreditna banka Maribor (NKBM), generated SIT 5.96bn
(EUR 25m) in pre-tax profit last year, which is 4.6% more than planned and 10.4% more than in
2003. According to unaudited results released by the bank on Monday, 28 February, total assets
increased by 10.8% to SIT 602.95bn (EUR 2.5bn), which is SIT 72bn (EUR 300m) short of the
target. According to the press release posted on the web site of the Ljubljana Stock Exchange,
the bank last year issued EUR 50m worth of subordinate notes, which are quoted on the
Luxembourg stock exchange.
Last year saw changes in the structure of the bank's liabilities. The share of foreign currency
liabilities increased by 1.9 percentage points to 34.2%, while the share of foreign currency
investment in the assets went up from 33.8% to 35.9% of all investments.
The bank generated SIT 2.98bn (EUR 12.43m) in net profit, which is planned to go up to SIT
4.3bn (EUR 18m) this year. This year's pre-tax profit is to amount to SIT 6bn (EUR 25m), while
the total assets are to increase by 8% to SIT 651.45bn (EUR 2.7bn).
The bank believes cost-cutting will be necessary to achieve the above targets. Due to a drop in
the interest margin, operating costs will have to stay at the 2004 level, which means a decrease of
2.8 percent in real terms.
According to the press release, NKBM plans to expand its operations throughout Slovenia. This
will be achieved together with Postna banka Slovenije (PBS), the postal bank which last year
became a member of the NKBM group. The bank expects greatest synergy effects in consumer
banking.
In a separate press release, PBS said its 2004 net profit, at SIT 64.06m (EUR 267.2m), reached
only 49 percent of what was planned. The total assets increased by 10 percent to SIT 110.97bn
(EUR 462.86m), which was still short of the planned 14% growth.
Probanka Sees 20% Increase in Profit
The bank increased the share of interest revenues in the overall revenues in 2004, increasing net
interests by 30 percent over 2003
Probanka, a small private bank from Maribor, increased its total assets by 20 percent to SIT
122.84bn (EUR 512m) in 2004. According to unaudited results quoted in a press release posted
on the web page of the Ljubljana Stock Exchange, gross profit was up 11 percent to SIT 894m
(EUR 3.7m). Net profit was up 12 percent to SIT 714m (EUR 2.98m). The overall volume of
dealings increased by 21 percent to SIT 169bn (EUR 705m), according to the press release.
The bank increased the share of interest revenues in the overall revenues in 2004, increasing net
interests by 30 percent over 2003.
Financial dealings profit of SIT 1.9bn (EUR 7.9m) was higher than expected, resulting from the
bank's activity in the financial and capital markets. Reserves totalled SIT 6.5bn (EUR 27.1m).
In 2005, Probanka plans to consolidate its market position, reaching a 2.25% market share,
increase the volume of operations by 16% and gross profit by 14%.
Slovenica Makes Profit in 2004
The insurer's profit, according to preliminary data, was SIT 221m (EUR 0.92m) in life insurance
and SIT 56m (EUR 233,578) in property insurance
Insurer Slovenica collected SIT 17.34bn (EUR 72.33m) worth of premiums and covered SIT
9.3bn (EUR 38.79) worth of damages last year. The insurer's profit, according to preliminary
data, was SIT 221m (EUR 0.92m) in life insurance and SIT 56m (EUR 233,578) in property
insurance. Slovenica, which was in 2004 still a uniform composite insurance company, now
continues to do business in property insurance without the life insurance part Slovenica
Zivljenje, which emerged after the split.
Slovenica conducted business operations successfully in the past year, chairman of the
company's management board Anton Koncnik told a press conference on Tuesday, 1 March.
The growth of its insurance premiums was above average, while the growth of damages was
lower. Given that Slovenica had seen loss in the year before, Koncnik is satisfied with the
results. The insurer plans to achieve a profit of SIT 429m (EUR 1.79m) this year.
Since the end of last year, Slovenica is preparing for a merger with the insurance company
Adriatic, of which it is the majority owner.
According to Koncnik, a time schedule as well as valuation of both insurance companies, needed
for the further merging activities, are to be performed by the auditor Deloitte&Touche. However,
the final decision lies in the hands of the owners, said Koncnik.
Insurer Vzajemna Incurs Loss, Wants to Expand Its Business
Slovenia's only mutual insurance company, health insurer Vzajemna, would like to expand its
operations to accident and life insurance, as well as related business
Slovenia's only mutual insurance company, health insurer Vzajemna, would like to expand its
operations to accident and life insurance, as well as related business. This is according to a
statement that Vzajemna shareholders endorsed on Wednesday, 2 March.
At the general meeting, Vzajemna chairman Marko Jaklic presented an estimate of the insurer's
2004 operating results. Although it ended the year in the red, Vzajemna performed well in the
given conditions and in line with the targets, Jaklic said.
The loss amounted to SIT 1.9bn (EUR 7.93m), but it would have reached SIT 2.9bn (EUR
12.10m) had the company not used its risk equalisation reserves of SIT 1.067bn (EUR 4.45m).
The loss, which is chiefly the result of the large number of old subscribers the insurer has, was
already announced in mid-2004.
At the time, Vzajemna blamed its loss on the failure to introduce risk equalisation schemes in
Slovenia that would put it on equal terms with insurance companies with much younger,
healthier members. Vzajemna said it would cover the loss with distributable profits from the
past.
According to its press release, Vzajemna collected SIT 56.5bn (EUR 235.67m) in premiums in
2004, which is about as much the year before, while it paid out SIT 51.8bn (EUR 216.06m) in
damage claims, up 4 percent. Compared to 2003, highest increase was posted in expenditure for
ambulance transport (17.8%), basic health care (8.8%) and specialist hospital care (7.2%).
Despite fierce competition, the insurer says it increased the number of subscribers to 1,130,000,
and sold by 3 percent more medical assistance insurance polices for abroad. It also offered new
services and benefits to its members.
Government Wants to Appoint New NKBM Supervisors
The government has called for a general assembly at Slovenia's second-largest bank, the NKBM,
as it seeks to appoint new supervisors at the bank
The government has called for a general assembly at Slovenia's second-largest bank, the NKBM,
as it seeks to appoint new supervisors at the bank.
The government wants the general assembly at the state-owned bank to be held as soon as
possible, setting 19 March as the last possible day.
According to the government, the aim is to appoint a new supervisory board at NKBM in a bid to
ensure the best management and oversight of the company.
Government spokesperson Jernej Pavlin said the government believes changes are needed in the
financial sector in order to adjust to changes brought on by Slovenia's EU entry as well as the
implementation of the Lisbon Strategy.
Former LJSE Chairman Sees Mixed Future for Newcomers' Financial Markets
Delivering a lecture at the London School of Economics and Political Science (LSE), Veselinovic
said the more upbeat outlooks suggested the EU newcomers, including Slovenia, will be able to
overcome their smallness by selling the specific local know-how they have
Former chairman of the Ljubljana Stock Exchange Drasko Veselinovic predicts a mixed future
for the financial markets of the new EU members. Whereas some forecasts suggest the financial
sovereignty of these countries will be reduced due to takeovers from large multinationals, others
believe these countries have great potential for development through market niches.
Delivering a lecture at the London School of Economics and Political Science (LSE),
Veselinovic said the more upbeat outlooks suggested the EU newcomers, including Slovenia,
will be able to overcome their smallness by selling the specific local know-how they have.
Veselinovic stressed that the future of financial markets in these countries will be dominated by
growing cross-border investments; new technologies, particularly electronic services; and the
growth of institutional investors.
The professor at the Ljubljana Economics Faculty also said Slovenian was doing the right thing
by working to meet the conditions for the adoption of the euro. For small countries, having an
own currency comes with extensive costs, Veselinovic said.
Veselinovic believes the euro will make the financial markets of the newcomers even more
international, while also helping to increase their liquidity.
The Slovenian financial market is expected to become even more interesting for countries of the
former Yugoslavia after the country joins the eurozone, he said.
Touching on the Slovenian economy, he said one of the main problems was that too much focus
is still being paid to labour-intensive sectors. Moreover, Slovenia's labour force is more
expensive than that of other newcomers and there is also a shortage of good investment ideas.
Veselinovic, who recently became the chairman of Dezelna banka, a small privately-owned
Slovenian bank, was invited to the LSE by Slovenian students there.
Raiffeisen Krekova Banka Pleased with 2004
Raiffeisen Krekova banka, a small Austrian-owned bank based in Maribor, posted a pre-tax
profit of SIT 281.8m (EUR 1.17m) for 2004
Raiffeisen Krekova banka, a small Austrian-owned bank based in Maribor, posted a pre-tax
profit of SIT 281.8m (EUR 1.17m) for 2004. Total assets were up 25% to SIT 160.5bn (EUR
669.5m).
The bank's performance was examined on Thursday, 3 March by the supervisory board and
assessed as solid.
The most successful segment last year was loans to customers, where the bank claims to hold a
5% market share.
The supervisors also labelled as successful the investment banking segment, in particular the
marketing of foreign mutual funds, and the brokerage business.
Ljubljana Stock Exchange
The SBI 20 benchmark index ended the week at 4,978.94 points
Blue chips hit two-month lows last week in some of the dullest trading of the year. The SBI 20
benchmark index shed 45.58 points (0.91 percent) on the week to fall below 5,000 points and
end the week at 4,978.94 points.
Volumes amounted to a paltry SIT 4.46bn (EUR 18.6m), which is 40 percent below the weekly
average for the year.
The big names fared poorly in one of the weakest trading weeks so far this year. Brewer
Pivovarna Lasko topped the list of losing shares, dropping 2.15 percent to SIT 7,537 (EUR
31.44).
Among the other big names, home appliance maker Gorenje lost 0.93 percent to SIT 6,266 (EUR
26.14), although news that the management bought shares last week caused a late recovery.
Drug maker Krka shed 0.8 percent to SIT 84,171 (EUR 351.08) and petrol retailer Petrol edged
0.22 percent lower to SIT 69,044 (EUR 287.98).
Among the best performing active shares last week was retailer Mercator, which remained
virtually unchanged at SIT 41,495 (EUR 173.08).
The action slowed to a snail's pace on the free market, where the PIX investment fund index lost
58.35 points (1.27 percent) to 4,578.86 and the IPT free market index was off 65.13 points (1.54
percent) at 4,231.83.
The BIO bond index closed at 122.24 points, down 0.05 points (0.04 percent) on the week.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.74 (+0.01)
U.S. dollar (USD) - SIT 182.83 (+0.62)
Swiss franc (CHF) - SIT 154.73 (-0.65)
British pound (GBP) - SIT 348.66 (+0.89)
REGIONAL INFORMATION
Government to Earmark EUR 20M of Funds for Pomurje
The Agriculture Ministry will earmark a total of SIT 56bn (EUR 233.5m) for rural development,
pricing policy and structural changes from the whole of Slovenia
Agriculture Minister Marija Lukacic has announced that the government will earmark over SIT
5bn (EUR 20.8m) in rural development and structural funds for Slovenia's poorest region this
year.
The Agriculture Ministry will earmark a total of SIT 56bn (EUR 233.5m) for rural development,
pricing policy and structural changes from the whole of Slovenia, Lukacic told a press
conference in Murska Sobota, held as part of a visit of cabinet officials to Pomurje.
Lukacic also said the ministry's service of consultants would advise farmers on how to apply for
subsidies from the national budget and EU funds. Under EU legislation, the deadline for
applications is 15 May, but the ministry plans to extend it until June.
One of Slovenia's 12 statistical regions, Pomurje is the most agriculture-oriented region of
Slovenia, both in terms of farmland and the number of farmers. As much as 22 percent of all
farmland in the country is in this northeastern-most region.
The agriculture sector is especially important given the absence of other industry in the region,
with one third of its population depending on farming for their livelihood. According to Lukacic,
this is the reason why the government attributes especial importance to the region, raising funds
by 5% each year.
The minister drew attention to the problem of fragmentation of farmland, which increases the
costs of production and reduces farms' competitive ability. The government plans to speed up
structural changes in this respect with a relevant law and amendments to the farmland fund act.
According to Lukacic, the changes are aimed at increasing the size of individual pieces of
farmland and improving production prospects for Slovenian farmers. She said the government
would seek to achieve this through land consolidation and land lease measures.
PM Says Government Plans to Bridge Development Gap in Pomurje
The government is to make the effort to help Pomurje, Slovenia's least developed region, near
the average rate of development over the next four years
The government is to make the effort to help Pomurje, Slovenia's least developed region, near
the average rate of development over the next four years. Visiting the region on Wednesday, 2
March, Prime Minister Janez Jansa explained that that was the reason the government came to
Pomurje at the beginning of its term in office.
According to Jansa, the agreements made in cooperation with the local authorities here will be
easy to check out at the end of the government's term.
Jansa explained it was important for the government to know the location and the stakeholders in
development projects that would be carried out in individual regions. The Jansa team therefore
held some 60 meetings with representatives of local institutions and companies.
Jansa himself held talks with representatives of the Hungarian ethnic minority living in the
region, Head of the Lutheran Evangelical Church Geza Ernisa and representatives of the Roma.
He was also at hand for the signing of an agreement encouraging the opening of new jobs, signed
on behalf of the government by Minister of Labour, Family and Social Affairs Janez Drobnic.
Jansa explained that Pomurje today reached 70 percent of the GDP average for Slovenia and that
this gap should be bridged over the next four years.
The Agriculture Ministry will earmark some SIT 5bn (EUR 20.8m) for the region this year, the
Ministry of Labour SIT 2bn (EUR 8.34m) for active employment policy, the Education Ministry
SIT 2bn (EUR 8.34m) and the Ministry of Local Self-Government and Regional Policy SIT 5bn
(EUR 20.8m) for five projects in tourism.
Government Wants Local Communities to Help Address Structural Problems
The government has called on local communities in Pomurje to work together with state
authorities in order to resolve the plentiful development issues in the region
The government has called on local communities in Pomurje to work together with state
authorities in order to resolve the plentiful development issues in the region. It is impossible to
achieve everything at the state level, PM Janez Jansa said during a visit to the region on
Wednesday, 2 March.
Minister of Local Self-Government and Regional Development, Ivan Zagar is adamant that
money which has so far been funnelled into the region top-down is insufficient. "Yet it is
possible to direct the so-called indirect incentives to the local level and use the resources more
rationally," he said.
While there is little money for direct incentives, there are still hidden reserves in indirect
resources distributed by individual ministries, Zagar is convinced.
He said the ministry would tweak the current system whereby funds are distributed top-down and
the local communities are not active participants. "Our goal is to redirect the system," he said,
adding that measures will be taken to improve cooperation with the local communities.
Jansa suggested that special EU funding could be obtained through cross-border projects. We
have to take advantage of the fact that Pomurje is a border region, which has not become an
advantage, said Jansa, stressing that this is an opportunity which must be seized.
Zagar also underlined EU structural funds. He noted that two-thirds of the SIT 3bn (EUR 12.5m)
available for this budget period has been earmarked for tourism, which he believes "could help
resolve the region's development problems".
Minister Promises to Help Pomurje Economy with Concrete Measures
Economics Minister Andrej Vizjak has pledged that his ministry would adopt concrete measures
in a bid to contribute to the development of Pomurje
Economics Minister Andrej Vizjak has pledged that his ministry would adopt concrete measures
in a bid to contribute to the development of Pomurje. The first such step is the projects based on
this year's budget, the minister told local business people on Wednesday, 2 March.
"The gap between the available budget funds and development ambitions of the Pomurje
economy is wide, but it can be bridged," the minister was quoted as saying in a press release
issued by his ministry.
As part of the government's visit to the region, Vizjak visited Mura, Slovenia's top clothing
company, and oil refinery Nafta Lendava, while he also held a meeting with representatives of
one of Europe's largest energy corporations, Eon Energie of Germany.
Eon officials said they were very keen to invest in Slovenia, so as to contribute to the
liberalisation of the electricity market and to further development of electricity companies in
Slovenia, according to the Economics Ministry's press release.
The minister is reported to have briefed them on the priorities of the government energy policy.
These include further liberalisation of energy markets and securing sustainable energy supply for
Slovenia.
Pomurje Mayors and Businesses Want Equal Treatment of Regions
Building the Pomurje part of the motorway network is essential for the region's development
Building the Pomurje part of the motorway network is essential for the region's development,
mayors and businessmen said as they met with the government cabinet on Wednesday, 2 March.
They also urged the government to provide equal development opportunities for all parts of the
country.
While mayors stressed in particular the importance of the motorway, businessmen also
underlined the urgent reform of the tax legislation and the need to cut red tape. They further
called for greater tax breaks on investments.
The government made no concrete promises, yet PM Janez Jansa stressed that they want to
preserve the healthy cores of companies and promote development. "There are healthy cores in
Pomurje," Finance Minister Andrej Bajuk added.
Labour Minister Janez Drobnic stressed that his ministry would promote employment policies in
the region. He noted that although Pomurje has high unemployment, certain businesses have
difficulties finding appropriate workers.
"The ministry will promote in particular training," he said. They will also continue subsidising
restructuring and re-qualification, and increase private investment in public services, notably old
people's homes.
BRANCH INFORMATION
Ministry Set to Draft a New Transport Policy Document
The Transport Ministry has set itself 16 top priorities for this year, the most important of which
will be the adoption of a resolution on transport policy, followed by the drawing of EU funds
The Transport Ministry has set itself 16 top priorities for this year, the most important of which
will be the adoption of a resolution on transport policy, followed by the drawing of EU funds.
According to Minister Janez Bozic, further priorities are the construction of a second railway
track between Divaca and Koper in the southwest, the introduction of an electronic motorway
tolling system and a solution for the state's relationship with Luka Koper, the company running
Slovenia's only commercial port.
"We will need a proper legal basis to attain all these goals. We will have to pass changes to
seven laws, as well as three resolutions and as many as 85 by-laws," the minister told the press
on Tuesday, 1 March.
The ministry has already set up inter-ministerial working groups tasked to examine the problems
of hauliers, find ways for a more effective railway system and regulate relations with Luka
Koper, according to State Secretary Peter Verlic.
The resolution on Slovenia's transport policy was withdrawn from procedure upon the change in
government. Transport Ministry officials say a new document must be drafted under the coalition
agreement, which calls for a balanced transport policy based on the guidelines from the EU's
White Paper on alternative means of transport.
The document will serve as a basis to meet goals in transport, such as the reduction of negative
effects on the environment, greater safety, optimal accessibility and mobility, adequate quality of
services and encouragement of alternatives to road transport.
Once the strategy is passed, the ministry will draft national programmes for air and railway
transport, maritime and state roads, the Transport Ministry officials explained.
According to them, the ministry expects to draw SIT 23.17bn (EUR 96.64m) from EU funds in
the period between 2005 and 2007, while Slovenia is to secure a further SIT 20.08bn (EUR
83.75m) from the budget.
Apart from relations with Luka Koper, the ministry also plans to regulate property relations with
the companies running the Ljubljana and the Maribor airports, the air traffic control service and
other companies using state property.
"By attaining those goals, we will gain extra budget revenues on account of rents, while we will
also increase the value of the leased or rented property," Bozic explained.
The ministry also identified three priorities in railway transport: the modernisation of the KoperDivaca railway, the construction of a second track between Divaca and Koper, and the
electrification and reconstruction of the railway line between Pragersko and Hodos, in the NE.
The objective of the modernisation is to increase the capacity of the Divaca-Koper railway line
from 53 to 81 trains a day, while the cargo capacity is to increase from 8 to 14 million tonnes a
year.
The investment is to cost the budget SIT 1.53bn (EUR 6.38m) this year, while a further SIT
3.7bn (EUR 15.43m) is to be earmarked for the construction of the other track.
Slovenian Fashion Design on Display in Venice
Visitors to the A+A gallery have an opportunity to see clothes, shoes, jewellery and other
accessories at the show which is entitled "Fresh" and features 19 Slovenian contemporary
fashion designers
An exhibition of Slovenian fashion design, which first opened at the Maribor Art Gallery in
Slovenia in early June, has travelled to the Slovenian gallery in Italy's Venice. Visitors to the
A+A gallery have an opportunity to see clothes, shoes, jewellery and other accessories at the
show which is entitled "Fresh" and features 19 Slovenian contemporary fashion designers.
The curators of the show, Simona Vidmar and Jure Purgaj, believe the selected fashion designers
are "the trend-setters of the Slovenian fashion scene changing the Slovenian fashion
consciousness. They have a clear identity and a distinguished style".
Fashion design in Slovenia has been completely overhauled since the early 1990s, with the
changed geopolitical situation prompting the relatively underdeveloped fashion industry into fast
development, the curators said.
"Fresh" features the works of Uros Belantic; Lara Bohinc; Tanja Devetak Gomez; Urska &
Tomaz Draz; Ursa Drofenik; Zoran Garevski; Petra Grmek; Marjeta Groselj; Leonora
Jakovljevic; Tomaz Jastrobnik; Olga Kosica; Monika Lorber; Zvezdana Pelengic Strajinovic;
Natasa Persuh; Jelena Prokovic; Almira Sadar & Marija Jenko; Nika & Jana Urbas; Matjaz Vlah;
and Marta Vodeb.
After closing at the Maribor Art Gallery on 30 September 2004, the exhibition first travelled on
to Vienna's "Unit F" gallery. The Venice show, however, will close on 1 April.
COMPANIES
Dragonja Leaving Lek for Russia, Bratos to Succeed Him
The Lek supervisory board will discuss a proposal to replace Dragonja with management board
member Janja Bratos on 22 March
The CEO of the pharmaceutical company Lek, Metod Dragonja, is to become the manager of
Novartis's generic division in Russia, the Ljubljana-based Lek said on Monday, 28 February. The
Lek supervisory board will discuss a proposal to replace Dragonja with management board
member Janja Bratos on 22 March. According to Lek, a swap in the company's management is
part of the reorganisation at Sandoz, the generics arm of Novartis, which started last year. Lek
has been part of Sandoz since the company was taken over by Swiss giant Novartis in 2002.
Bratos, who is to take over Lek and all Sandoz activities in Slovenia, is to assume a key role in
the introduction of organisational changes and the integration of production facilities into a
global production infrastructure.
According to Sandoz chairman Andreas Rummelt, Dragonja has been successful in managing the
Ljubljana-based Lek for more than 15 years. By leaving for Russia, he will take over the
management on a growing market with great potential, Lek said in a press release.
"Managing Lek was a great challenge for me. I'm grateful to the colleagues who have supported
me and have contributed to Lek's successful results. I'm looking forward to managing our
business in Russia, which is one of the most interesting generic pharmaceutical markets," said
Dragonja.
His successor Bratos has been with Lek for the past 30 years and a member of the board since
1999. During that time, she has gained experience in development and intellectual property. She
has also been in charge of marketing and sales.
Kolinska Profits Slump as Sales Target Missed
According to the group, sales grew by only 2 percent to SIT 24bn (EUR 100.1m)
Food group Kolinska missed profit targets by 42 percent as its sales lagged behind forecasts in
2004. According to the group, sales grew by only 2 percent to SIT 24bn (EUR 100.1m), causing
profit to dip 39 percent compared to 2003 to SIT 721.7m (EUR 3m). In its summary of 2004
results, Kolinska did not specify what caused it to miss both sales and profits targets. However,
the worse-than-expected results are in line with the general weakness in the Slovenian food
industry.
The group, which is in the midst of a merger with fellow Slovenian food company Droga,
intends to spend 2005 focusing on the promotion of its line of products. It said it intended to
increase spending on marketing of its leading brands and products.
Kolinska suggested it would offshore some of its production to its affiliated companies in SE
Europe and Russia in a bid to cut costs and raise cost efficiency.
Mlinotest Reports 37% Profit Drop
Food producer Mlinotest reported unaudited net sales revenues of SIT 4.7bn (EUR 19.6m) last
year
Food producer Mlinotest reported unaudited net sales revenues of SIT 4.7bn (EUR 19.6m) last
year, which is an increase of 3 percent over 2003. The net profit amounted to SIT 212m (EUR
0.88m), plummeting by 37 percent year-on-year, the Mlinotest management told a news
conference on Monday, 28 February. As chairman of the board David Nabergoj explained, worse
results in some areas have not been prompted by poor business operations but are mainly a result
of changed tax legislation in line with which the company had to pay an extra SIT 35m (EUR
0.14m) in taxes.
Poorer performance has also been prompted by a fire in the Mlinotest facility in Ajdovscina that
caused damages of SIT 290m (EUR 1.2m) directly and of SIT 50m (EUR 0.2m) indirectly,
Nabergoj said.
Moreover, fiercer competition after Slovenia's EU entry has forced the food producer to lower
the prices of its products in between 5 and 10 percent, according to Nabergoj.
The producer meanwhile managed to keep its market share on the Slovenian market, which
amounts 22 percent in pasta, 10 percent in bread and 15 percent in milling products.
Intereuropa's Results Above Expectations
Logistics group Intereuropa generated net sales revenues of SIT 51bn (EUR 212.7m) in 2004, an
increase of 13 percent over the previous year
Logistics group Intereuropa generated net sales revenues of SIT 51bn (EUR 212.7m) in 2004, an
increase of 13 percent over the previous year, while the net profit amounted to SIT 2.9bn (EUR
12m). The results are above expectations, the company told a news conference on Monday, 28
February. According to the management, the group's rate of profitability stood at 8.4 percent,
while the productivity growth amounted to 18 percent. In other encouraging figures, the value
added per employee amounted to SIT 6.3m (EUR 26,300) and the group's capital increased by 2
percent.
The land transport, which accounts for more than half of all revenues, increased by 13 percent
last year. Meanwhile, an 18-percent drop was reported in the volume of customs services, which
the management said was a result of a drastic fall in customs services after Slovenia's EU entry.
This year, the group anticipates to generate revenues of SIT 53.8bn (EUR 224.4m), which would
be an increase of 5 percent over 2004. The management also announced the group's plan to
remain the leading logistics company in Southeastern Europe.
Despite the satisfactory 2004 business results, the management is facing a strike that the workers
have announced after their wages have been reduced by 6.2 percent in January. The management
claims the wages had to be cut due to lower revenues in customs services.
Luka Koper Increases Profits
Port manager Luka Koper generated a net profit of SIT 4.2bn (EUR 17.5m) last year, which is
an increase of 8 percent year-on-year
Port manager Luka Koper generated a net profit of SIT 4.2bn (EUR 17.5m) last year, which is an
increase of 8 percent year-on-year. Operating revenues meanwhile amounted to SIT 16.7bn
(EUR 69.6m), the company said on Monday, 28 February. According to the company's press
release, the operating revenues saw a 15-percent increase year-on-year and were 6 percent above
the targets. The growth in revenues was especially encouraging on foreign markets, where the
company creates four fifths of all revenues.
The company also said it transhipped a total of 12,402,607 tonnes of cargo last year, which is an
all-time record and an increase of 12.4 percent over the previous year.
The 2004 business report was confirmed on Monday, 28 February by the supervisory board, who
also approved the management's proposal on the distribution of the 2004 balance sheet profit in
the amount of SIT 5.787bn (EUR 24.1m).
According to the proposal, SIT 2.201bn (EUR 9.18m) would go for the shareholders' dividends
and SIT 2bn (EUR 8.34m) for the reserves, while a decision on the remaining SIT 1.586bn (EUR
6.61m) is to be taken in coming years.
Ljubljana Airport Company Reports 12% Rise in Net Profit
Aerodrom Ljubljana, the company running the Ljubljana airport, saw its net profit increase by
12% to SIT 2.04bn (EUR 8.51m) last year
Aerodrom Ljubljana, the company running the Ljubljana airport, saw its net profit increase by
12% to SIT 2.04bn (EUR 8.51m) last year. Operating revenues were up by 14% to SIT 5.53bn
(EUR 23m), which is 6% above the target, according to unaudited results released by the
company on Monday, 28 February. Last year, the airport saw the number of its passengers top
one million for the first time ever. Their number increased by 13% over 2003 to 1,048,238. The
number of arrivals and departures increased from 31,737 in 2003 to 35,502 in 2004.
The year 2004 marked the launch of scheduled flights by Hungarian air carrier Malev, budget
carrier EasyJet, Austrian Airlines and Air France. The company invested into the construction of
a multi-storey car park, which is expected to be completed in May.
The company highlights the arrival of new foreign airlines, an increase in passengers upon EU
entry, its clear strategy and good prospects for the future as the most decisive factors for the 97%
increase in the price of the Aerodrom share.
Revealing its plans for 2005, the company said pre-tax profit is to amount to SIT 2.26bn (EUR
9.43m). It also projects a 16 percent increase in the number of arrivals and departures and a 15
percent increase in the passenger numbers. Investments are to amount to SIT 2bn (EUR 8.34m).
Droga's Profit Down 25%
The food company Droga posted SIT 18.5bn (EUR 77,16m) in sales revenues last year, up 5%
over 2003
The food company Droga posted SIT 18.5bn (EUR 77,16m) in sales revenues last year, up 5%
over 2003. Operating profit totalled SIT 1.2bn (EUR 5m), an increase of 28%, the company said
in a press release. SIT 1bn (EUR 4.2m) of gross profit reflects high extraordinary expenditure
because of an additional tax on 2003 profit, the company said, explaining that this resulted in a
net 2004 profit of SIT 668.5m (EUR 2.8m), which is 25% less than in 2003.
The tax inspection ordered additional tax on 2003 profit in January, which resulted in higher tax
burden on 2004 profit, Droga explained in a press release.
Losses in associated companies in former Yugoslavia were also higher than expected, most
notably in Sarajevo's Konzum, Droga Skopje and Droga Beograd.
Droga sells most, 64% of its products on the home market, where it saw sales increase by 6%,
which is more than planned. Coffee accounts for half of the sales revenues on the domestic
market, while its meat products account for 71% of sales on the foreign markets.
The market of former Yugoslavia is the prime foreign market with an 82% percent share.
Foreign market sales increased by 8%, which was still 10% below target figures. The reason for
this were poor sales, mainly in the Russian Federation and the Middle East. Sales in the EU
increased by 9%, exceeding the plans by 5%, the company said.
Droga is in the midst of a merger with Kolinska, another Slovenian food company.
Etol’s Sales Revenues Increase by 3.8 percent
The Celje-based producer of flavourings and essential oils, Etol saw its sales revenues increase
by 3.8 percent to a little over SIT 7bn (EUR 29m) last year
The Celje-based producer of flavourings and essential oils, Etol saw its sales revenues increase
by 3.8 percent to a little over SIT 7bn (EUR 29m) last year. Net profit meanwhile increased by
10.6% to SIT 865.4m (EUR 3.6m), according to unaudited results quoted in the company's press
release. The company had planned a 10.3 percent growth in sales. It failed to meet the target
because of lower sales on the domestic market, which the company says were due to
unfavourable weather conditions.
The company claims to have posted best sales figures in the programme of aromas, powder
programme, in particular baby food, while it also developed a new range of powder aromas.
Last year Etol also won a grant from the Slovenian development fund for a new project in the
spices section. The company also reports that its subsidiary Etol Ukraine acquired a share in the
distributor Etol Kiev, while Etol Southeastern Europe launched its operations in SerbiaMontenegro.
Plans for this year include 13.3 percent growth in sales, 8.35 percent return on equity and SIT
16.6m (EUR 69,239) value added per employee. The management also plans to expand the sales
network with its own companies.
Bankruptcy Protection of Nafta Lendava Confirmed by Higher Court
According to the bankruptcy protection plan, the creditors should be paid off within a year
Nafta Lendava has received a court order of the Maribor Higher Court which confirms its
bankruptcy protection and rejects an appeal by the company Jadranski naftovodi (Janaf), the
refinery's second biggest creditor after the state. In line with the ruling issued on Monday, 28
February the creditors will be paid off 20 percent of their claims, that is SIT 1.12bn (EUR
4.67m), while the SIT 10bn (EUR 41.71m) of debts to the state will be transformed into a
contribution to the capital of the company.
The ruling, passed by the Murska Sobota District Court last November and now confirmed by
the Higher Court, will enable Nafta Lendava to get rid of SIT 15.5bn (EUR 64.65m) worth of
past debts, ending its integral reorganisation that started in 2002.
The company director Cveto Zalik was pleased with the court's decision and pointed out that the
ruling will end a 30-year long problematic period for the company, which is now looking
forward to an upward turn.
According to Zalik, the refinery's new investments will focus on ecological projects, including
biodiesel and geothermal ones, and on updating the petrochemistry.
According to the bankruptcy protection plan, the creditors should be paid off within a year. The
refinery owed SIT 10bn (EUR 41.7m) and SIT 5.6bn (EUR 23.3m) to the state and Janaf
respectively, and some minor sums to other creditors.
Janaf, which is a Croatian oil company, appealed to the higher court after the first instance court
dismissed its argument that the principle of creditor equality - Janaf requested the same status as
the Slovenian state and demanded that its claims be transformed into a contribution to the
company's capital - had been broken.
Moreover, Janaf was convinced that Nafta Lendava could meet its commitments to the creditors
without debt enforcement. It also claimed that according to the balance sheet, the creditors could
be paid off in bigger shares than envisaged in the bankruptcy protection proposal.
These arguments have been rejected as unfounded already by the creditor's representatives, and
additionally by the trustee of the bankruptcy protection procedure, who said the proposal was in
accordance with the law and warned the refinery would file for bankruptcy if the settlement
failed.
Nafta Lendava has claimed it had run into such huge debts due to harmful political decisions
made over the past decades, including a failed investment into a new refinery in the 1970s.
Terme Catez Spa Posts Net Profit of EUR 2.8m
Revenues amounted to SIT 5.4bn (EUR 22.5m), with a major share posted on the Slovenian
market, according to the company, which said it had consolidated its status of the leading tourist
centre in Slovenia last year
The spa company Terme Catez posted a net profit of SIT 663.8m (EUR 2.8m) in 2004. Revenues
amounted to SIT 5.4bn (EUR 22.5m), with a major share posted on the Slovenian market,
according to the company, which said it had consolidated its status of the leading tourist centre in
Slovenia last year. Expenditures totalled SIT 4.7bn (EUR 19.6m), while revenues increased by
9.8% in 2004 year-on-year. Overall profit was up by 26.5%, however the net profit was down
5.6% due to a higher tax on profit, the company said.
The streamlining of operations and cost efficiency reflected in a 19.5% increase in operating
profit, which grew faster than the operating revenues, according to the company's business
report.
The company in September signed a contract on the construction of Zdravilisce II, a hotel with a
wellness centre, which is also co-funded by the Economics Ministry and the European Regional
Development Fund with SIT 889m (EUR 3.7m).
Another investment has been made in the Bosnian health resort Terme Ilidza, where the
Slovenian company holds a 90-percent stake. The construction of a water park there is estimated
at EUR 15m.
The company is also making preparations for the construction of holiday apartments at the
Slovenian sea-side Portoroz, also co-funded by the Economics Ministry and the European
Regional Development Fund in the amount of SIT 608m (EUR 2.5m).
The company believes that fresh investment, better services and takeovers are the only way to
increase its market share. Terme Catez anticipates an 8% growth in operating revenues, and a 7%
increase in the number of night stays in 2005.
Luka Koper Must Follow Environmental Standards, Minister Says
The port of Koper must consider environmental criteria in its development, as economic interests
ignoring the environment do not enable development in the long-term, said Environment
Minister Janez Podobnik
The port of Koper must consider environmental criteria in its development, as economic interests
ignoring the environment do not enable development in the long-term, Environment Minister
Janez Podobnik said on Tuesday, 1 March. Speaking in a debate about the development of
Slovenia's only port, Podobnik said that no study had been made to examine the influence of the
port's development on the environment. The state must offer the economy development
opportunities, and the same goes for Luka Koper, which is making efforts to construct a third
pier for container transport. The company met with strong opposition of the local population to
the project.
The government will do its best for Luka Koper to remain a strong company, said Podobnik, who
advocates a compromise between the local population and the company on the construction of
the third pier.
Bruno Korelic, the CEO of Luka Koper, highlighted that commercial ports represented important
transport infrastructure for the national economy. Unlike in the construction of roads and
railways, ports cannot choose among different locations in expanding their infrastructure, he
said.
He highlighted that the port with accompanying activities generates US$ 200bn of revenues and
SIT 100bn of value added per year.
Korelic said that the Koper port can make Slovenia a leading logistic and port route for countries
of Central and Eastern Europe. Luka Koper can sell logistics and other related services at
competitive terms, he said.
Slovenia can easily set the goal of generating EUR 1bn of annual revenues from goods transit
and accompanying services, said Korelic, adding that this would also open new jobs. According
to him, Luka Koper has become a leading port for transit in the Adriatic.
Korelic also touched on the disputed second pier, used for the transport of bulk cargo, mainly
iron ore and coal, which was criticised by the local population as hazardous to health. Korelic
rejected these claims, saying that the infrastructure of the port resembled that of a mid-sized
Slovenian city.
He said the company had passed a number of measures, including pollution measurement, and
the setting-up of a protective fence. However, the port cannot cut the volume of transported
cargo in the short term because of long-term contracts, according to Korelic.
Korelic said the only way the port opens a new, container terminal is through expansion. He
highlighted this was the most acceptable port activity in term of development, income and
environment.
Marija Dumanic, a local representative, said that the port could close the second terminal for
bulk cargo and instead open a much cleaner, container terminal.
Mayor of Koper Boris Popovic, meanwhile, stressed the importance of the port for the coastal
region and Slovenia as a whole. He said Luka Koper would have to make better use of its space
if it wanted to increase the transport of cargo with a higher value.
Janez Pozar, the acting director general of the Transport Ministry's maritime directorate, said that
most ports in Europe were specialising in container transport, which is why Luka Koper will
have to develop in this direction as well.
BTC Reports 40% Jump in Profits
BTC, the operator of a Ljubljana shopping and storage hub, has reported revenues of SIT 8.3bn
(EUR 34.62m) for 2004
BTC, the operator of a Ljubljana shopping and storage hub, has reported revenues of SIT 8.3bn
(EUR 34.62m) for 2004, an increase of 4.3 percent over 2003. Unaudited figures put the
company's net profit at SIT 1.37bn (EUR 5.7m), up by 40 percent on the year before, the
company said in a press release.
The company continued to invest heavily into its infrastructure, earmarking SIT 5.1bn (EUR
21.3m) for development. Its biggest project has been the construction of a water fun park in
Ljubljana's BTC City centre, which is set to begin operating at the end of April.
The supervisory and management boards of BTC, which celebrated 50 years of operations last
year, said they were pleased with 2004 results. Plans for this year envisage a 19 percent rise in
revenues and a 28 percent rise in profits.
BTC is expected to continue focus on development, investing up to SIT 3.3bn (EUR 13.8m) this
year, including in a new water fun park in Velenje, central Slovenia.
Emona Obala Remains in the Red
Wholesaler and retailer Emona Obala has reported a loss of SIT 2.046bn (EUR 8.5m) for 2004
Wholesaler and retailer Emona Obala has reported a loss of SIT 2.046bn (EUR 8.5m) for 2004,
which is SIT 1.6bn (EUR 6.7m) better than the massive loss made in 2003. The group, which
runs a chain of round-the-clock grocery stores, says it has overcome its problems related to EU
entry and mistakes in the balance sheets from previous years.
Emona Obala generated net sales revenues of SIT 13.4bn (EUR 55.9m) last year, which is an 18
percent drop on 2003. Sales slumped after Slovenia joined the EU due to extensive pricing
pressures, the group said in a press release.
According to the management of the group, all of the improprieties in the balance sheets have
been done away with and the group is optimistic about this year's operations.
The group, an importer of respected foreign brands, is looking to strengthen its wholesale
operations by acquiring new product lines and stepping up marketing of current brands.
Emona Obala chairman Ales Skraba expects the group will complete consolidating its wholesale
network in the countries of the former Yugoslavia this year. Expansion into Serbia-Montenegro
and Macedonia is also planned for this year.
Cost-cutting will continue to be the order of the day at the group. As a result, the company is
expected to sell out-of-use premises.
Glassworks Gets China Business
Glassworks Steklarna Rogaska has signed a one-year deal with Chinese company Beijing
Faaite, which will become the authorised dealer of Rogaska's products in China
The cash-strapped glassworks Steklarna Rogaska has signed a one-year deal with Chinese
company Beijing Faaite, which will become the authorised dealer of Rogaska's products in
China. The company hopes the deal is the first step towards long-term cooperation.
According to Steklarna, the Chinese company, which deals in high-end glass products, has
committed itself to registering the Rogaska Crystal brand name in China and becoming the
authorised dealer of Rogaska products in China.
The deal is initially expected to bring Steklarna 1 million US dollars, although the company
hopes it will lead to long-term cooperation.
Rogaska has so far sold its brands in China through furniture and glass trader Da Vinci, which is
present in Indonesia, Malaysia and China.
According to Tugomer Kladnik, Steklarna's marketing director, the company has already worked
out a comprehensive marketing strategy for China.
Steklarna is currently in bankruptcy protection. Its creditors have filed claims of SIT 15.5bn
(EUR 64.65m) with the administrative receiver of the company.
The administrator, Tomaz Kos, is currently sifting through the claims sent in by 212 creditors to
come up with a final figure for the company's liabilities.
The total amount of registered liabilities exceeds the estimate given by Steklarna's general
manager Bojan Bevc by almost SIT 3bn (EUR 12.5m).
Banks, which are said to be owed almost SIT 10bn (EUR 41.7m) by Steklarna, have already
begun asking for the payouts of state-guaranteed loans from the Finance Ministry.
Bevc hopes the banks will back the restructuring of the company, since the company would
otherwise have to close down.
Labour Ministry Provides Funding for Preservation of Mura Jobs
Representatives of the government, textile company Mura and the garment maker RLS Moda
signed a contract worth SIT 118.5m (EUR 0.5m), which will enable the launch of the newly
established RLS Moda and preserve 79 jobs
Representatives of the government, textile company Mura and the garment maker RLS Moda on
Wednesday, 2 March signed a contract worth SIT 118.5m (EUR 0.5m), which will enable the
launch of the newly established RLS Moda and preserve 79 jobs.
RLS Moda is a joint venture of Mura and German fashion firm Rene Lezard. According to the
contract, the company will take on 79 Mura workers, Mura said in a press release.
The money has been provided by the Ministry of Labour, Family and Social Affairs under the
employment programme of the National Employment Service.
The agreement will speed up restructuring at the company and make it possible to reduce the
number of employees while not reducing overall unemployment in the region.
The contract was signed by Labour Minister Janez Drobnic, Rene Lezard board member Joachim
Clug and Mura chairman Borut Meh.
According to Mura, the greatest advantage of cooperation with RLS Moda is a long-term
business cooperation agreement in which Rene Lezard is bound to buy services from Mura over
the next five years.
Portal of Online Hotel Booking Launched
A new portal www.hotel.si has been launched at the start of the week, enabling users to check
availability and pricing of accommodation in Slovenian hotels online
A new portal "www.hotel.si" has been launched at the start of the week, enabling users to check
availability and pricing of accommodation in Slovenian hotels online. It offers information in
Slovenian, English, German and Italian.
The portal is still in the test mode for the moment: it enables to book 10 hotels directly online,
while it provides information on a total of 26 hotels ranging from 5 to 2 stars.
The online booking system has been set up by Slovenian companies Mais Informacijski sistemi
and Ars informatika in a project worth of SIT 50m (EUR 0.2m). The Economics Ministry
provided 10 percent of the funds.
OMV Istrabenz Becomes OMV Slovenija
Oil Trader OMV Istrabenz has been officially renamed OMV Slovenija, dropping the name
Istrabenz after the Slovenian partner Istrabenz in the Austrian-Slovenian joint venture pulled out
of the oil business altogether
Oil Trader OMV Istrabenz has been officially renamed OMV Slovenija, dropping the name
Istrabenz after the Slovenian partner Istrabenz in the Austrian-Slovenian joint venture pulled out
of the oil business altogether.
The renaming is effective as of 21 January, the company said on Friday, 4 March. The Austrianowned company will still be based in the Slovenian city of Koper and Dimitrij Zadel, the
erstwhile chairman of the board, will remain at the helm as director.
The company said that the next step would be an intensive overhaul of the corporate brand at all
102 service stations around the country. The process is to be completed by the end of the year.
Austrian oil trader OMV Marketing&Refining officially became the sole owner of OMV
Istrabenz after striking a deal worth EUR 95m with its partner, the energy and tourism holding
Istrabenz, in June.
OMV Slovenija will be part of the regional group OMV Adriatic alongside OMV Hrvatska,
OMV BiH and OMV Italia. OMV Adriatic is the holding company formerly also called OMV
Istrabenz.
SLOVENIA IN BRIEF
Slovenia's Donation to ITF SIT 89.7m in 2005
Slovenia will donate SIT 89.7m (EUR 374,000) to the Slovenian-run international demining fund
in 2005 in a move that makes Slovenia one of the most generous donors to the International
Foundation for Demining and Mine Victims Assistance (ITF), the Defence Ministry said. A
contract to that effect was signed on Monday, 28 February by Minister of Defence Karl Erjavec
and ITF director Dorijan Marsic. Minister Erjavec considers it right for Slovenia to help demine
countries in the southeast of Europe.
Prodi and PM Jansa Discuss EU's Development
The former president of the European Commission Romano Prodi, who paid a two-day visit to
Slovenia, met PM Janez Jansa on Tuesday, 1 March to discuss development problems the EU is
expected to face in the future, the prime minister's office said. Jansa praised the work of the
European Commission, which greatly facilitated the realization of the historical process of EU
enlargement when it was led by Prodi. The prime minister also took this opportunity to
congratulate Prodi on a state honour which was to be bestowed on him after the meeting by
President Janez Drnovsek.
Ministry Promises Active Employment Policy Measures
Labour Minister Janez Drobnic announced active employment policy measures on Tuesday, 1
March, which the minister promises would increase employment rather than prevent
unemployment. According to Drobnic, the ministry has a budget of almost SIT 21bn (EUR
87.59m) in 2005 for implementing the measures. Drobnic explained at a news conference that
this year's programme foresees a total of 149,900 people to be included in the active employment
policy.
Rupel Briefed by Locals on Problems along Croatian Border
Foreign Minister Dimitrij Rupel met with representatives of the Hungarian ethnic minority in
Lendava on Wednesday, 2 March. Rupel, who was part of the cabinet team visiting the NE
region of Pomurje, also inspected the situation on the Slovenian-Croatian border.
Economic and Social Council Confirms Work Permit Quota for Foreigners
The Economic and Social Council confirmed the regulation on the proposed work permit quota
for 2005 at its session on Friday, 4 March. According to the document, a total of 16,700 permits
will be issued to citizens from third countries.
NEK Commission Endorses Decommissioning Plan
The Slovenian-Croatian commission overseeing the implementation of the bilateral accord on the
joint management of the Krsko Nuclear Power Plant (NEK) endorsed a NEK decommissioning
plan during a meeting on Friday, 4 March.
Rupel Calls on UN Security Council to Utilise OSCE
Foreign Minister Dimitrij Rupel called on the UN Security Council to make better use of the
OSCE as he addressed the body on Friday, 4 March. According to Rupel, the OSCE chairmanin-office, the OSCE is facing difficulties and efforts must be stepped up to preserve it. Rupel
spoke of the problems faced by the OSCE as he addresse the Security Council.
Kosovo Dominates Rupel's Meeting with Annan
The future of Kosovo dominated the talks between Foreign Minister Dimitrij Rupel and UN
Secretary General Kofi Annan at UN headquarters in New York on Friday, 4 March.
Triglav AGM to be Held on 6 April
The management of Zavarovalnica Triglav, Slovenia's largest insurer, has called an extraordinary
general assembly for 6 April in response to a request by the state-run Restitution Fund (SOD).
The shareholders of the insurer are expected to vote on a new supervisory board at the meeting.