Slovenia Business Week no. 23, June 12th, 2006
Table of Contents:
HEADLINES ................................................................................................................. 3
Inflation, Exports, Imports Up, IMAD Report Says................................................... 3
Chamber of Commerce and Industry of Slovenia to Prepare Thoroughly for
Changes ...................................................................................................................... 3
D&B Says Gradual Privatisation Good for Slovenia ................................................. 4
INTERNATIONAL COOPERATION .......................................................................... 5
Export Corporation Signs Deal with Russia's Largest Bank ...................................... 5
Slovenia, Vietnam Want to Boost Cooperation.......................................................... 5
New Slovenian Ambassador to Canada Presents Credentials .................................... 6
Official: Serbia Is an Attractive Investment Opportunity .......................................... 6
Parliamentary Visit to Russia Paves Way for Better Cooperation ............................. 7
Drnovsek Receives Egyptian, Philippine Ambassadors ............................................. 7
EUROPEAN UNION .................................................................................................... 8
Slovenia to Organise 9 Informal Ministerials as EU Chair ........................................ 8
EU Finance Ministers Endorse Slovenia's Euro Switch ............................................. 8
Slovenia Improves EU Fund Drawing Capacity ........................................................ 9
Slovenia in Favour of Regional EU Energy Markets ................................................. 9
LEGISLATION ........................................................................................................... 11
Parliamentary Finance Committee for Changes to Insurance Act ........................... 11
STATISTICS/FORECASTS........................................................................................ 12
Unemployment in Slovenia Hits Record Low .......................................................... 12
Slovenia Closes Export-Import Gap in April ........................................................... 12
Factory-gate Prices up 0.1% in May ........................................................................ 13
Labour Costs up 42.3% between 2000 and 2006 ..................................................... 13
GDP Growth at 5.1% in the First Quarter ................................................................ 13
Industrial Output up 0.6% Y/Y in April ................................................................... 14
FINANCE .................................................................................................................... 15
Cigarette Prices to Rise in July ................................................................................. 15
Petrol Prices Edge Lower ......................................................................................... 15
EBRD Will Hold on to NLB for Now ...................................................................... 15
Pricewatch: Major Price Hikes an Exception Rather than Rule ............................... 16
FCE Declares Gorenjska Banka Best Slovenian Bank in 2005................................ 16
Abanka Vipa Shareholders to Get a EUR 0.91 Dividend......................................... 16
Banka Koper Shareholders Get Hefty Dividends ..................................................... 17
Ljubljana Stock Exchange ........................................................................................ 17
Foreign Exchange ..................................................................................................... 18
REGIONAL INFORMATION .................................................................................... 19
Deal Signed on Management of Maribor Airport Infrastructure .............................. 19
BRANCH INFORMATION ........................................................................................ 20
Slovenian-Italian Company to Increase Electricity Exports..................................... 20
Five Wines, two Slovenian, Crowned Kings at International Wine Show............... 20
Share of Cleaner Energy Sources Increasing ........................................................... 21
Two Tabloids Slovenia's Top Periodicals ................................................................ 21
Three UMTS Licences Put up for Sale ..................................................................... 22
All Shops to Reopen on Sundays ............................................................................. 22
EU Vets Pleased Overall With Food-Processing Facilities ...................................... 23
COMPANIES .............................................................................................................. 23
Luka Koper Signs Deals with Two Israeli Export Companies ................................. 23
Telco Launches 10 Gigabit Ethernet Backbone Link ............................................... 24
Krka's Zyllt Medicine Temporarily Banned in Serbia-Montenegro ......................... 24
Infond Holding 2 Buys Majority Stake in Alpina .................................................... 25
Siol Introduces HDTV .............................................................................................. 25
Zlata moneta 2 Buys Fifth of Logistics Group Viator&Vektor................................ 26
CEO: Elan Needs to Invest into Production, Despite Mortgage .............................. 26
Ljubljana Dairies: Contentious Macedonian Milk not from Slovenia ..................... 26
Daily Vecer Shareholders to Get a Record EUR 4.16 Dividend .............................. 27
Mercata Buys Stake in Shipping Firm ...................................................................... 27
Helios Shareholders Get Dividends of EUR 12.2 per Share .................................... 27
SLOVENIA IN BRIEF ................................................................................................ 29
Portuguese, Slovenian Culture Ministers Call for More Cooperation ...................... 29
Serbia-Montenegro Embassy in Slovenia Renamed Serb Embassy ......................... 29
Parliamentary Committee Confirms Changes to Job-Seekers' Act .......................... 29
Slovenia, Austria, Hungary Check State of Environment at Border ........................ 29
HEADLINES
Inflation, Exports, Imports Up, IMAD Report Says
The latest edition of the Economic Mirror, published by the Institute of
Macroeconomic Analysis and Development (IMAD), recorded an increase in the
annual inflation rate (3.2%; May), exports (18.7%) and imports (18.1%) in Q1
The latest edition of the Economic Mirror, published by the Institute of
Macroeconomic Analysis and Development (IMAD), recorded an increase in the
annual inflation rate (3.2%; May), exports (18.7%) and imports (18.1%) in Q1.
Meanwhile, the monthly inflation rate stood at 0.9% in May, a rise attributed to an
increase in fuel, food and soft drinks prices, according to the May edition of the
Economic Mirror.
IMAD also saw Slovenian exports rise 18.7% in Q1 of 2006, caused by a favourable
economic climate in the EU.
Exports into EU members in the January-to-March period meanwhile grew by 18.8%,
with Great Britain, Austria and Italy being the EU's fastest-growing export markets
for Slovenian goods.
The growth of imports, although lagging behind exports, still grew by 18.1% in Q1,
mainly due to intermediate goods, a consequence of a rapid growth of industrial
output.
Labour market indices were also favourable in the January-to-March period, with
0.9% more people employed in comparison with the same period last year.
The number of unemployed was still relatively high, with 70,000 people (1.4% over
that of Q1 2005) looking for jobs. The number did drop by 5.4% in comparison with
that of Q4 2005, the report also states.
Chamber of Commerce and Industry of Slovenia to Prepare Thoroughly for
Changes
The CCIS's main task is to create an efficient chamber and start work anew
Jozko Cuk, the head of the Chamber of Commerce and Industry (CCIS) said on
Tuesday, 6 June that the CCIS will no longer deal with whether it is fair that different
rules apply to it than other chambers, but will thoroughly prepare itself for its
transformation.
Cuk, speaking after the session of the CCIS management board which discussed the
recently-passed Chamber of Commerce act, added that the CCIS's main task is to
create an efficient chamber and start work anew.
The act, passed in late May, introduced voluntary membership in chambers and
replaced the act which set down mandatory CCIS membership, Slovenia's lone
chamber of commerce.
The management board therefore discussed the timetable for the CCIS's activities,
including its plans to deal with the changes to its financing.
Membership fees currently account for 78% of CCIS's income, however, after the
transformation that number would drop to 30%, with the rest of the income coming
from the CCIS's services, Cuk explained.
He expressed his pleasure over the fact that the newly-established chambers will be
treated as representative only if its members produce at least 10% of sales revenues in
Slovenia and its members constitute at least 5% of all companies that can become a
chamber's member.
Cuk also believes that new chambers will only be established by people who have a
strong interest in setting them up, and called on would-be founders to approach the
project in a responsible manner.
He revealed that the CCIS currently employs 235 people and generates SIT 4.2bn
(EUR 17.46) of revenues a year. By 2008 the revenues are likely to drop to between
SIT 2.3bn and 3.3bn (EUR 9.56m and 13.72), while the CCIS would employ between
150 and 200 people.
Under the new act, the CCIS became its own legal successor and can keep its name,
with its members free to decide whether they will remain CCIS members or opt for
joining a possible newly-established chamber.
Under the new legislation, the CCIS will also have to amend its statute within five
months after the law enters into force.
D&B Says Gradual Privatisation Good for Slovenia
International rating firm Dun & Bradstreet (D&B) stated in its latest report that
gradual privatisation is working well for Slovenia, as it has enabled the country to
avoid "the sometimes severe dislocations suffered by other transition economies"
International rating firm Dun & Bradstreet (D&B) stated in its latest report that
gradual privatisation is working well for Slovenia, as it has enabled the country to
avoid "the sometimes severe dislocations suffered by other transition economies".
However, the report urges the government to speed up the process, as "the
competitiveness gains enjoyed by the economy could have been greater if the state
had allowed the private sector to play a more prominent role", reads the report on
Thursday, 8 June.
Despite the confirmation of Slovenia's entry into the eurozone, the country's rating
remained unchanged at DB2c, keeping it on top in Eastern Europe alongside Slovakia.
D&B moreover believes that the resignation of Development Minister Joze P.
Damijan "is unlikely to herald an end to the reform process". Damijan resigned in
March after taking over the office on 1 January 2006.
Additionally, D&B believes that the recently signed Development Partnership pact
between almost all of the parliamentary parties bodes good for the reforms, as
"seeking broad consensus has been the mainstay of Slovenia's successful reform
process".
D&B moreover cites a survey by the Slovenian Employment Service which states that
a total of 7,328 jobs will be lost in 2006 "as a result of redundancies and bankruptcy".
Nevertheless, "D&B expects net job creation to be sufficient to lead to a further
decline in the unemployment rate, to 8.4% by end-2007".
INTERNATIONAL COOPERATION
Export Corporation Signs Deal with Russia's Largest Bank
The Slovenian Export Corporation (SID) and Russia's biggest bank Sberbank have
signed an agreement on cooperation aimed at facilitating trade between Slovenia and
Russia
The Slovenian Export Corporation (SID) and Russia's biggest bank Sberbank have
signed an agreement on cooperation aimed at facilitating trade between Slovenia and
Russia, SID said on Monday, 5 June.
The agreement, signed last Wednesday, 7 June during a three-day visit of PM Janez
Jansa and a strong business delegation to Moscow, envisages bilateral cooperation in
insuring and financing Slovenia's export of goods and services to Russia.
SID and Sberbank are to make joint decisions on which Slovenian export projects to
Russia they will support, with the bank acting as a loan taker, while the Slovenian
company will have the discretionary right to select the deals.
Sberbank, which employs more than 219,000 people and has around 20,000
subsidiaries, is Russia's seventh financial institution to close a cooperation agreement
or a memorandum of understanding with SID.
Sberbank of the Savings Bank of the Russian Federation bank holds a 60% market
share in terms of retail deposits, and a 50% market share in terms of retail loans, with
its total assets standing at over US$ 70bn, the press release also reads.
Slovenia, Vietnam Want to Boost Cooperation
Slovenian Foreign Minister met his Vietnamese counterpart Nguyen Dy Nien with
ways of boosting bilateral cooperation topping the agenda
Slovenian Foreign Minister met his Vietnamese counterpart Nguyen Dy Nien on
Monday, 5 June, with ways of boosting bilateral cooperation topping the agenda.
Rupel said that the mutual accreditation of ambassadors would help improve
cooperation, which Nguyen agreed with.
According to sources in the Slovenian delegation, Nguyen said that non-resident
ambassadors would soon be accredited in Ljubljana and Hanoi respectively.
Vietnam currently covers Slovenia from Budapest whereas the request Slovenia made
in May for non-resident coverage of Vietnam from China is still being processed.
Talks also touched on economic cooperation, with Rupel saying that Slovenia will try
to put together a business delegation soon and organise a business conference.
Both ministers also spoke in favour of bilateral agreements on economic cooperation,
promotion and protection of investments and avoidance of double taxation.
More specifically, Rupel presented the potential of the Slovenian Port of Koper as an
entry point to Europe, while Nguyen expressed interest for Slovenian foreign
investment, the same sources said.
Rupel moreover presented Slovenia's preparations for EU chairmanship in the first
half of 2008, emphasising Slovenia's interest in strengthening dialogue between the
EU and Asia through the ASEM forum.
The Slovenian minister also briefed his counterpart on the work of the Slovenia-run
ITF demining fund, which is looking to expand its activities to mine-infested
countries in Southeast Asia.
The pair also signed a memorandum of understanding between the foreign ministries.
Rupel concluded the first red-carpet visit by a Slovenian official with a courtesy call
on Deputy Prime Minister Nguyen Tan Dzung.
New Slovenian Ambassador to Canada Presents Credentials
Tomaz Kunstelj, the new Slovenian ambassador to Canada, presented his credentials
to Michaelle Jean, the country's governor general in the Canadian capital of Ottawa
Tomaz Kunstelj, the new Slovenian ambassador to Canada, presented his credentials
to Michaelle Jean, the country's governor general in the Canadian capital of Ottawa
on Tuesday, 6 June.
Kunstelj, appointed in mid-May, also discussed bilateral relations with his Canadian
host, labelling them traditionally good, yet adding that they could be improved upon.
Canada is well acquainted with Slovenia's foreign policy activities, including the
country's recent taking over the chairing of the Human Security Network.
The meeting was also attended by all three Slovenian honorary consuls, Joze
Slobodnik as the honorary consul general in Toronto, Ginette Gagne Koch from New
Brunswick and Branko Palcic from Vancouver.
Kunstelj said that his priorities as ambassador to Canada include continuing joint
projects, promoting economic cooperation and facilitating cultural exchange.
He moreover said that he hope Canada would open an embassy in Slovenia, which it
currently covers from Hungary.
Official: Serbia Is an Attractive Investment Opportunity
Serbia is one of Slovenia's top ten trading partners
Serbia's macroeconomic stability, geographic position, educated workforce,
stimulative tax system and access to other markets are just five of the reasons that
make Serbia an interesting investment opportunity, Vesna Petric of the Serb
Investment and Export Promotion Agency said.
FDI accounted for US$ 2bn in 2006, with Petric adding that Slovenian companies
come third overall with US$ 174m of investments. She mentioned that retailer
Mercator, automotive component producer Cimos and hardware retailer Merkur were
at the forefront of the investors.
Serb Deputy Minister of the Economy and Privatisation Mihailo Vesovic meanwhile
told a panel on possible Slovenian investments in Serbia on Wednesday, 7 June, that
the second wave of privatisation of Serb companies after the fall of Slobodan
Milosevic's regime in 2000 is scheduled to end in 2007.
He revealed that telecommunications, energy, insurance, banking, railroad and road
infrastructure and other companies are currently being privatised.
He added that 1,943 Serbian companies were privatised between 2002 and 2006,
while 468 companies will be privatised in 2006. The Serb authorities also want to
complete the restructuring of large companies in this year.
The Serb market, which is the final destination of 17% of Slovenian exports and 60%
of Slovenian investments, could also serve as a starting point for Slovenian exports to
the Western Balkan, said Andrijana Starina Kosem, state secretary at the Slovenian
Ministry of the Economy.
Serbia is one of Slovenia's top ten trading partners with Slovenian trade between the
countries amounting to US$ 480m, out of which Slovenian exports were worth US$
300m in 2005.
Parliamentary Visit to Russia Paves Way for Better Cooperation
According to the group's head, MP Rudolf Petan, the visit confirmed there is
readiness for cooperation on both sides
A delegation of the National Assembly's parliamentary friendship group with Russia
concluded a three-day visit to Russia on Thursday, 8 June. According to the group's
head, MP Rudolf Petan, the visit confirmed there is readiness for cooperation on both
sides.
After the visit, which came just a few days after an official visit by PM Janez Jansa
and a strong business delegation to Russia, Petan told STA that politics has paved the
way and that concrete proposals need to follow.
The Slovenian delegation, which visited Russia upon the invitation of the Russian
Duma, also included MPs Vasja Klavora in Matjaz Han.
They met Duma Deputy Speaker Valentin Kuptsov, the vice-chairman of the Council
of the Federation Dmitry Mesentsev and other representatives of Russian Foreign
Ministry and Duma.
Moreover, the delegation met representatives of Slovenians living in Russia and
visited the Slovenian Krka Rus pharma factory in the town of Iskra.
Drnovsek Receives Egyptian, Philippine Ambassadors
Slovenian President Janez Drnovsek has received the credentials of the new nonresident ambassadors of Egypt and the Philippines, Hisham Mohamed el-Zimaity and
Linglingay Fonacier Lacanlale, who will cover Slovenia from Budapest and Vienna
respectively
Slovenian President Janez Drnovsek has received the credentials of the new nonresident ambassadors of Egypt and the Philippines, Hisham Mohamed el-Zimaity and
Linglingay Fonacier Lacanlale, who will cover Slovenia from Budapest and Vienna
respectively.
In talks with the new Egyptian ambassador, Drnovsek underlined Egypt's role as a
country with crucial influence in the region, while el-Zimaity presented his country's
efforts in the resolution of the Israeli-Palestinian conflict, the president's office
reported.
The Egyptian ambassador also voiced support for Drnovsek's efforts to help alleviate
the humanitarian and security crisis in the Sudanese region of Darfur, saying that
Egypt believes aid to the three million persons displaced by the conflict could be more
efficient.
Philippine Ambassador Linglingay Fonacier Lacanlale meanwhile presented her
country's efforts to boost inter-religious dialogue in the light of inter-religious
tensions in the south of the Philippines.
Drnovsek expressed the conviction that religious leaders could do more to prevent the
escalation of tensions worldwide, and presented his efforts to strengthen interreligious dialogue, his office said.
Both ambassadors also presented copies of their credentials to Andrej Ster, the head
of the Foreign Ministry's directorate for international law and protection of interests.
The Egyptian ambassador told Ster, according to the Foreign Ministry, that the
Egyptian government has decided to open a representation office in Slovenia, which
is to be followed by an embassy.
EUROPEAN UNION
Slovenia to Organise 9 Informal Ministerials as EU Chair
The working group in charge of preparations for Slovenia's EU presidency on
Tuesday, 6 June decided that Slovenia will organise nine informal ministerial
meetings during its stint at the helm of the EU in the first half of 2008
The working group in charge of preparations for Slovenia's EU presidency on
Tuesday, 6 June decided that Slovenia will organise nine informal ministerial
meetings during its stint at the helm of the EU in the first half of 2008.
While eight of the meetings will be held in Slovenia, one will take place in Brussels,
according to a press release from the office of PM Janez Jansa, who chairs the
working group.
One of the sub-groups reported on "the inherited agenda", or topics that Slovenia
might have to be dealing with as part of its agenda.
A review of such topics is a basis for an 18-month programme of a troika of
successive EU presiding countries (Germany in the first half of 2007, followed by
Portugal and Slovenia), the office added.
The working group also discussed a draft calendar of events with third countries and a
proposal of Slovenia's corporate image, which however will be presented a month
before the country assumed EU presidency.
EU Finance Ministers Endorse Slovenia's Euro Switch
EU finance ministers gave Slovenia the go-ahead to become the 13th member of the
eurozone on 1 January 2007 as they met for their final session under Austria's EU
presidency in Luxembourg
EU finance ministers, including Slovenia's Andrej Bajuk, gave Slovenia the go-ahead
to become the 13th member of the eurozone on 1 January 2007 as they met for their
final session under Austria's EU presidency in Luxembourg on Wednesday, 7 June.
Slovenian Finance Minister Bajuk expressed his pleasure over the decision, labelling
the fact that his colleagues endorsed the positive separate opinions by the European
Commission and the European Central Bank (ECB) "another step in the right
direction".
The 1 January 2007 euro changeover was the consequence of Slovenia's "focused
policies and its attempts to understand the criteria it needed to meet. A broad
consensus was reached in the country, allowing us to suitably change the monetary
and fiscal policies," Bajuk said.
Yet all was not rosy at the meeting, as Slovenia was also issued some warnings
regarding the need to keep inflation under control and to retain financial discipline, he
revealed.
The EU's warnings also touched upon the stability of the public finance system,
largely connected, Bajuk believes, to Slovenia's low birth rate. However, such issues
can be resolved if the country achieves the necessary consensus, he added.
The ministers, however, did not endorse Lithuania's entry into the eurozone. Bajuk
labelled the decision as expected, as the rules were known in advance and all
candidate countries were treated in the same way.
He observed that changes to the conditions for eurozone entry should be discussed.
Slovenia has tried to open the issue during the drafting of the European constitutional
treaty, yet was not listened to, he said.
Already on Tuesday, 6 June, the Commission's mid-May positive assessment of
Slovenia's readiness to switch to the euro was given the green light by eurozone
finance ministers.
At their traditional separate meeting, the 12 ministers too rejected Lithuania's bid to
changeover to the common currency, in line with the Commission's
recommendations.
Slovenia Improves EU Fund Drawing Capacity
The supervisory board for the 2004-2006 Single Programming Document (SPD) has
discussed Slovenia's drawing of EU funds, saying that 70.8% of all contracts worth
SIT 56bn (EUR 232.8m) were signed by the end of April 2006, a rise from 58% in the
same period in 2005
The supervisory board for the 2004-2006 Single Programming Document (SPD) has
discussed Slovenia's drawing of EU funds, saying that 70.8% of all contracts worth
SIT 56bn (EUR 232.8m) were signed by the end of April 2006, a rise from 58% in the
same period in 2005.
Indeed, means worth 103.4% (SIT 81.6bn/EUR 339.23) of all available EU funds
were tendered out in 2006, with 91.3% of the means (SIT 72bn/EUR 299.32m) having
already been allocated, the board heard as it met in Mokrice on Wednesday, 7 June.
According to the government Office for Local Government and Regional Policy, by
the same time last year 88% of all means were tendered out and 77.6% allocated,
while the numbers stood at 57.7% and 36.4% in 2004, respectively.
Joint payments from the Slovenian and EU budgets totalled 35.6% (SIT 28.1bn/EUR
116.82m) of available funds by April 2006, while the numbers stood at 29.7% (SIT
23.5bn/EUR 97.69m) in 2005 and at 6.8% (SIT 6.8bn/EUR 28.26m) in 2004.
In Q1 of 2006 Slovenia moreover ranked first among the EU 2004 newcomers with
payments in comparison with the funds allocated for the country totalling 33.8%.
Yet, the country could still improve on its absorption capacity, mainly by cutting red
tape, employing enough qualified staff, simplifying the legislation and more active
management of available funds, the office added.
The improvements to the drawing of the funds could also be achieved by the
establishment of regions and by ensuring their autonomy.
The meeting of the council was attended by Local Government and Regional Policy
Minister Ivan Zagar, representatives of the European Commission, businesses, social
and regional partners as well as NGOs.
Slovenia in Favour of Regional EU Energy Markets
Slovenia has joined the majority of EU member states in its support of the formation
of regional energy markets which can represent a transitional phase in the formation
of a single EU energy market
Slovenia has joined the majority of EU member states in its support of the formation
of regional energy markets which can represent a transitional phase in the formation
of a single EU energy market, a senior government official has said.
Igor Salamun, the acting head of the Economic Ministry's directorate general for
energy, told STA at a close of the session of EU ministers in charge of energy on
Thursday, 8 June that the energy council voiced unanimous support for the creation of
a more efficient internal energy market.
The debate also showed strong support for the development of renewable energy
sources and energy efficiency, said Salamun, adding that no technology should be
excluded a priori.
"Slovenia advocates the position that member states and the EU must first find an
answer in renewable sources and energy efficiency," he added.
According to Salamun, political and economic cooperation with third countries in the
region was also crucial in efforts to diversify energy sources.
LEGISLATION
Parliamentary Finance Committee for Changes to Insurance Act
The parliamentary finance and monetary policy committee voted in favour of the
government-sponsored changes to the insurance act
The parliamentary finance and monetary policy committee voted in favour of the
government-sponsored changes to the insurance act at its session on Tuesday, 6 June.
Apart from including the provisions of two EU insurance directives, passed after the
insurance act was last amended in 2004, the changes also demand that insurers abolish
their equalisation risk reserves by 1 January 2007, said Ziga Lavric of the Finance
Ministry.
The state secretary at the ministry added that the changes allow insurers only to create
such reserves for credit-based insurance, while the rest would have to be abolished.
The changes moreover allow the insurance companies to act as mediators in deals
involving investment coupons of mutual funds, Lavric revealed.
The insurers will moreover be allowed to perform a special and limited form of reinsurance, therefore strengthening their competitive position, he said.
The committee meanwhile rejected the upper chamber's proposal on amending the
personal income tax act and decided to deal with the opposition-proposed bill on legal
successors to authorised investment companies at one of its next sessions.
STATISTICS/FORECASTS
Unemployment in Slovenia Hits Record Low
Unemployment in Slovenia is decreasing at a record pace and is already lower than it
has ever been in the past 15 years
Unemployment in Slovenia is decreasing at a record pace and is already lower than it
has ever been in the past 15 years, the acting general manager of the Employment
Service of Slovenia Anka Rode told the press on Monday, 5 June.
According to Rode, the number of persons registered as unemployed at the end of
May was 87,111, which is the lowest figure for Slovenia since 1991.
Rode explained that employment growth has been extremely high this year, with the
number of newly employed people in May 2006 exceeding last-year's figures for the
same period by 12.2%.
Rode attributed the development to a good performance by the service and to
economic trends on the labour market.
"A total of 26,064 unemployed persons have found work this year, which is a 5.2%
increase over the same period last year," she stressed, adding that unemployment
figures continue to drop, with the figure standing at 86.986 on Monday, 5 June.
Meanwhile, Labour Minister Janez Drobnic has labelled the latest drop in
unemployment as one of the ministry's biggest recent achievements.
"The reason for this lies in the successful work of the employment service as well as
the work of the ministry," Drobnic wrote in a press release on Monday, 5 June.
"With such a team we will be able to honour my promise of 10,000 new jobs by the
end of the year and also modernise the service in order to find employment for even
more people and contribute to the reforms announced in Slovenia," he concluded.
According to the latest data released by the Statistical Office, Slovenia's ILO- and
Eurostat-compatible unemployment rate was 6.9% in the first quarter of 2006.
Slovenia Closes Export-Import Gap in April
Slovenia's exports totalled EUR 1.28bn in April, a 7.3% increase over the year
before, while imports stood at EUR 1.30bn, up 2.7% compared with April last year
Slovenia's exports totalled EUR 1.28bn in April, a 7.3% increase over the year before,
while imports stood at EUR 1.30bn, up 2.7% compared with April last year.
The country's trade gap stood at EUR 16.9m in April, which is but a ninth of the gap
recorded in March. This puts the export-import coverage at 98.7%, up 7.9 percentage
points over the month before, according to preliminary data from Slovenia's Statistical
Office.
In the first four months of 2006, Slovenia's exports reached EUR 5.26bn, which is an
increase of 16.5% compared with the same period last year. Imports upped 14.6% to
EUR 5.55bn, which so far puts this-year's export-import coverage at 94.7%.
In the first four months of 2006, Slovenia imported EUR 4.37bn of goods from EU
countries, an 11% rise over the same period last year, while imports from other
countries surged 30.5% to EUR 1.18bn.
Slovenia exported goods worth EUR 3.68bn to EU members (+16.7%), while EUR
1.57bn were exported to non-EU states (+16.1%).
Factory-gate Prices up 0.1% in May
Prices upped 2.4% year one year
Factory-gate prices rose 0.1% in May over the previous month, putting the price rise
since the beginning of the year at 1.3%, according to the National Statistical Office.
Prices upped 2.4% year one year, with the biggest increase recorded in mining
(4.5%), followed by electricity, gas and water supply (3.9%), manufacturing (2.1%)
and forestry (0.4%).
Compared with April, a slight increase was recorded only in manufacturing (0.2%).
Forestry and mining preserved their April levels, whereas electricity, gas and water
supply prices dropped 0.2%.
The prices of intermediate goods (energy products and raw materials) increased by
0.3%, in comparison with April, whereas prices of consumer goods were down 0.1%
and those of capital goods 0.3%.
Year-on-year, intermediate goods were up 3.4% and consumer goods 2.1%, while the
price of capital goods dropped by 0.8%.
Labour Costs up 42.3% between 2000 and 2006
In the analysed period, labour costs increased the most in mining and quarrying
(65.8%) and the least in other social and personal services (29.5%)
Labour costs per hour worked grew by 42.3% in Slovenia between the first quarter of
2000 and the same period this year, according to provisional data by the National
Statistical Office.
In the analysed period, labour costs increased the most in mining and quarrying
(65.8%) and the least in other social and personal services (29.5%).
On a yearly comparison, labour costs per hour worked grew by 2.2%, the preliminary
figures suggest.
GDP Growth at 5.1% in the First Quarter
Slovenia's gross domestic product at constant prices grew by 5.1% year-on-year in
the first quarter of this year, one of the highest growth rates in the past six years
Slovenia's gross domestic product at constant prices grew by 5.1% year-on-year in the
first quarter of this year, one of the highest growth rates in the past six years,
according to the National Statistical Office.
"The economy is currently in good shape because it has taken advantage of favourable
trends in the broader region," Karmen Hren, the head of the department for national
accounts, told the press on Friday, 9 June.
One of the main features of the first quarter was the 13.7% year-on-year increase in
exports, with imports growing at an annual 12.1% in real terms.
Although imports and exports are growing rapidly, 80% of the growth is a result of
soaring domestic expenditure, Hren pointed out.
The main reason is higher growth in gross capital formation, while the contribution of
final consumption expenditure remains the same as in 2006.
Final consumption expenditure increased by 3.3%, the same as in the first quarter of
2005. Private and general-government final consumption expenditure increased by the
same amount.
Housing construction continued to hop along at an annual rate of 13%, but Hren said
that the peak has been reached so the curve will start to flatten out gradually.
Value added in volume terms increased the most in manufacturing, but high growth
was also recorded in transport, hotels and restaurants and in trade.
In basic industries value added increased by 6.6%, in market services by 4.9% and in
the general government sector by 2.6%.
The statisticians also presented the main aggregates of the general government for the
first quarter, which suggest that general government deficit stood at 3.5% of GDP,
down 0.8 percentage points year-on-year.
For the last four quarters, general government deficit is estimated at 1.6% of GDP,
which is 0.2 percentage point less year-on-year.
Industrial Output up 0.6% Y/Y in April
Adjusted for the number of working days, however, it was up by 4.9%, according to
the latest data of the National Statistical Office
Slovenia's industrial output grew by 0.6% year-on-year in April. Adjusted for the
number of working days, however, it was up by 4.9%, according to the latest data of
the National Statistical Office.
The volume of industrial production increased the most in mining (21.7%). It was up
0.2% in manufacturing and dropped by 2% in electricity, gas and water supply.
Industrial production increased year-on-year in two of three main industrial
groupings: in consumer goods industries it was up by 2.1% and in capital goods
industries by 1.9%, but in intermediate goods industries it was down by 1%.
FINANCE
Cigarette Prices to Rise in July
The retail price of the best-selling cigarettes in Slovenia will rise 5.5% on 1 July, in
line with the amended act on excise duties
The retail price of the best-selling cigarettes in Slovenia will rise 5.5% on 1 July, in
line with the amended act on excise duties. A packet of the most popular cigarettes
will cost SIT 475 (EUR 1.97), SIT 25 (EUR 0.1) more than now.
In line with the act, excise duties on cigarettes will continue to amount to at least 57%
of the retail price, the minimum according to EU standards.
In total, the excise duties on 1,000 cigarettes will increase from EUR 54 to EUR 58 on
1 July.
The act on excise duties envisages regular increases in excise duties, until they reach
the European level by 2008.
Petrol Prices Edge Lower
Prices at the pump edged lower on 6 June, after reaching record heights in early May
Prices at the pump edged lower on Tuesday, 6 June, after reaching record heights in
early May. A litre of regular unleaded costs SIT 248.30 (EUR 1.03), down 3.3 tolars,
while diesel is being 6.9 tolars cheaper at SIT 233.6 (EUR 0.97).
Apart from the two most widely sold sorts, prices of premium unleaded and heating
oil also went down: the former by 3.5 tolars to SIT 252.30 (EUR 1.05) and the latter
by 4.1 tolars to SIT 153.80 (EUR 0.64) per litre.
The prices dropped in line with the government petrol pricing model, which monitors
prices of crude oil over the last month and adjusts petrol prices accordingly.
Economist France Krizanic said the drop will have a positive impact on inflation.
Against the backdrop of three consecutive months of high inflation, this is also
probably why the government has refrained from rising excise duties.
Krizanic pointed out that the global prices of oil will depend largely on the tensions
between the West and Iran: is there is a military conflict, oil will soar above the
current level of 70 US dollars per barrel, he said.
EBRD Will Hold on to NLB for Now
The European Bank for Reconstruction and Development (EBRD) has decided not to
accept any of the nine offers it received for its 5% stake in NLB
The European Bank for Reconstruction and Development (EBRD) has decided not to
accept any of the nine offers it received for its 5% stake in NLB, Slovenia's leading
bank on price grounds, TV Slovenija reported late on Monday, 5 June.
The head of the EBRD office in Slovenia, Francois Lecavalier, has told Delo that the
offers were too low, but he refused to specify what would be the minimum acceptable
price.
Lecavalier refused to comment the subsequent steps that ERBD will make. "EBRD is
a financial investor and financial investors eventually sell their investments," he told
STA.
He would not reveal whether the bidders were foreign or domestic investors. "We
cannot comment on the identity of the bidders," he added.
EBRD paid EUR 64m for the stake in 2002. This is also the last time an official per
share price was released, SIT 34,000 (EUR 141.9). However, former Development
Minister Joze P. Damijan has recently put the current market price at SIT 60,000
(EUR 250).
It is questionable, however, if the EBRD would fetch such a price, for it offered its
stake broken up into slices ranging from 0.1% to 0.25% of the NLB share capital.
EBRD was forced to offer its stake for sale in accordance with a shareholder
agreement it signed four years ago.
The daily Delo has expressed doubt whether EBRD would offload its stake now if it
was not for that provision, given the uncertain situation at the bank following the
announcement of the majority shareholder, Belgian group KBC, to reassess its role in
the bank.
Pricewatch: Major Price Hikes an Exception Rather than Rule
The first results a three-month independent price monitoring project have revealed no
systematic price hikes as Slovenia gears up to switch to the euro in January 2007
The first results a three-month independent price monitoring project have revealed no
systematic price hikes as Slovenia gears up to switch to the euro in January 2007,
according to a consumer watchdog.
However, several cases of unjustified price rises have been recorded, Breda Kutin, the
president of the Slovenian Consumers' Association, told the press on Thursday, 8
June.
Presenting the results in Ljubljana, Kutin revealed that prices increased by an average
of 0.46% between mid-February and mid-May.
She pointed out that some goods have nevertheless become more expensive by several
percent, such as some sorts of bacon, rice, coffee, fruit, frozen fish, washing powders
and so on.
The association is monitoring 104 selected goods and services, including those which
were the most heavily subjected to price hikes when other countries were switching
over to the euro, including catering, hairdressing, cleaning services and gaming.
While no major price rises were noticed in these services, they expect that "more will
happen" in the next three-month monitoring period.
FCE Declares Gorenjska Banka Best Slovenian Bank in 2005
Gorenjska banka has been ranked the best Slovenian bank and its manager Zlatko
Kavcic named top Slovenian banker in 2005 by the London-based Finance Central
Europe (FCE) magazine
Gorenjska banka has been ranked the best Slovenian bank and its manager Zlatko
Kavcic named top Slovenian banker in 2005 by the London-based Finance Central
Europe (FCE) magazine, the bank said on Thursday, 8 June.
The UK magazine proclaimed the Kranj-based bank Slovenia's best in terms of return
on assets (ROA) and gross profit for the fourth year in a row.
The bank concluded 2005 with a pre-tax profit of SIT 14.5bn (EUR 60.28m) and SIT
11.3bn (EUR 46.98m) net profit, resulting in a 4.82% ROA, while return on equity
(ROE) amounted to 26.3%.
The press release also reads that the bank generated a pre-tax profit of SIT 4bn (EUR
16.63m) in the first four months of this year.
Gorenjska banka is the country's 7th largest bank by assets. Its majority owners are
chemical and tourism group Sava and hardware chain Merkur.
Abanka Vipa Shareholders to Get a EUR 0.91 Dividend
The bank will thus earmark SIT 1.2bn (EUR 4.98m) for dividends
Shareholders of Abanka Vipa, Slovenia's third largest bank, agreed on a dividend of
SIT 220 (EUR 0.91) per share at the bank's AGM held on Thursday, 8 June.
The bank will thus earmark SIT 1.2bn (EUR 4.98m) for dividends, out of its 2005
accumulated profit of SIT 2.3bn (EUR 9.56m).
The remaining profit will be distributed into reserves, while the management will be
given SIT 12.65m (EUR 52,500) in bonuses.
The shareholders were unanimous in backing a counter proposal by insurer
Zavarovalnica Triglav and appointed Irena Vodopivec Jean and Andrej Klanjscek as
the new members of the bank's supervisory board.
The annual general meeting also voted in favour of a discharge of the bank's
management and supervisory boards.
Abanka Vipa posted a net profit of SIT 4.77bn (EUR 19.83m) last year and increased
its assets by 24.2% to SIT 598.3bn (EUR 2.48bn), giving it 8.6% of the Slovenian
banking market.
In the first half of the year, the bank also issued 700,000 shares, increasing its capital
by SIT 6.3bn (EUR 26.19m).
Banka Koper Shareholders Get Hefty Dividends
Shareholders of Banka Koper have endorsed the management board's proposal to
allocate almost the entire distributable profit for 2005 (SIT 2.65bn/EUR 11m) for
dividends at SIT 5,000 (EUR 20.9) per share
Shareholders of Banka Koper have endorsed the management board's proposal to
allocate almost the entire distributable profit for 2005 (SIT 2.65bn/EUR 11m) for
dividends at SIT 5,000 (EUR 20.9) per share.
The annual general meeting, held on Thursday, 8 June, also decided that retained net
profit which stems from the migration to International Standards of Accounting on 1
January 2006 (SIT 1.44bn/EUR 6m) remain undistributed, the bank said in a press
release on Friday, 9 June.
The term of the current supervisory board expires on 27 June, so the shareholders
appointed Giuseppe Cuccurese, Janko Kosmina, Marjan Babic, Flavio Gianetti, Carlo
Moretti and Michele Raris for another three-year term.
They will be joined by Andrej Lovsin, the chief exec of logistics group Intereuropa,
which holds 10% of the share capital.
Banka Koper's majority owner is the Italian bank San Paolo IMI, which has a 63.51%
stake.
Ljubljana Stock Exchange
Stock market firmly in bear territory
The Ljubljana Stock Market was bearish this week, in part reflecting the prevailing
gloom of the global financial markets. The benchmark SBI 20 lost 44.3 points to
5,043.01, with the blue chip SBI TOP index down 2.91 points to 1,159.05.
According to financial consultant Matej Tomazin, the trading shows that the LJSE is
still quite isolated from the global trends, but no longer completely decoupled as it
had been in the past.
Drug maker Krka was the pace-maker with a steady bearish run that resulted in a
weekly loss of 2.4% for a closing price of SIT 148,386 (EUR 619.20). Deals with
Krka were worth SIT 1.55bn (EUR 6.5m).
Similarly, energy, food and tourism group Istrabenz shed over 2% to SIT 8,100 (EUR
33.80) on deals worth SIT 1.1bn (EUR 4.6m).
Petrol was the exception among the blue chips, countering the trend with a weekly
gain of 2.08% to SIT 88,920 (EUR 371.05).
Most other blue chips lost ground on less than thrilling demand.
The free market was even more subdued than the official market, as volumes were
wafer-thin on most trading days.
The PIX investment fund index shed 33.74 points to 4,038.05, with the bond BIO
index losing 0.79 points to 118.54.
This week's deals were worth a combinen SIT 7.9bn (EUR 33m), with block trade
accounting for 37% of the total.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.62 (-0.01)
U.S. dollar (USD) - SIT 189.81 (+2.32)
Swiss franc (CHF) - SIT 153.66 (+0.43)
British pound (GBP) - SIT 348.85 (-0.21)
REGIONAL INFORMATION
Deal Signed on Management of Maribor Airport Infrastructure
The long-awaited deal was signed between the Transport Ministry and Aerodrom
Maribor, the operator of Maribor's international airport
A two-year agreement was signed Wednesday, 7 June on the use and management of
ground facilities at Maribor airport. The long-awaited deal was signed between the
Transport Ministry and Aerodrom Maribor, the operator of Maribor's international
airport.
The deal ends the four-year search for a solution of legal relations between the state,
which owns the majority of the airport's infrastructure, and Aerodrom Maribor, the
minority owner of the infrastructure.
In line with the deal, Aerodrom Maribor will be in charge of the regular infrastructure
maintenance, and will share the costs for investment maintenance with the state.
Aerodrom Maribor, owned by car-seat coverings manufacturer Prevent Global, will
be obliged to earmark 25% of its sales revenues, or up to SIT 83.3m (EUR 346,300)
for this purpose. However, the deal does not reveal the amount of the state's share.
As Transport Minister Janez Bozic explained, the state's investment will depend on
the annual budget. "However, considerable means will be needed to ensure Schengen
standards," the minister said as he signed the deal.
"We first have to make an accurate estimate of the amount of means needed for the
airport infrastructure," said Prevent Global CEO Joze Kozmus. He estimated that
several million euros will have to be invested for the most necessary equipment.
Bozic and Kozmus, whose company bought bankrupt Aerodrom Maribor for just over
EUR 1m four years ago, stressed it is in the best interest of both the government and
the company to develop the airport into an up-to-date European juncture.
The agreement was announced by Bozic in March in a move that broke the deadlock
over the management of the ground facilities. After two years, the ministry would
propose long-term solutions based on the principles of public-private partnership.
The development came after the ministry for years faced severe criticism for failing to
come up with a management system that would be acceptable for the privately-held
airport management company and the state.
BRANCH INFORMATION
Slovenian-Italian Company to Increase Electricity Exports
The KB 1909 financial company, owned by Slovenian and Italian companies, will try
to increase exports of electricity from Slovenia to Italy
The KB 1909 financial company, owned by Slovenian and Italian companies, will try
to increase exports of electricity from Slovenia to Italy, KB 1909 CEO Boris Peric
said on Tuesday, 6 June in Italy's border city of Gorizia.
One of its more important projects will be the construction of a power line between
the Slovenian village of Vrtojba (W) and Italy's Redipuglia, Peric revealed upon
presenting the company's plans to the press.
The EUR 30m project, drafted by KB 1909 in cooperation with Slovenian energy and
tourism holding Istrabenz and Italian Iris company, will greatly facilitate exports of
Slovenian electricity to Italy, he added.
The company is moreover thinking of getting listed on the Ljubljana Stock Exchange
(LJSE), with Peric revealing that it will continue to strengthen its role as a pillar of
Slovenian minority's economy in Italy.
KB 1909, a legal successor to the Slovenian minority bank Kmecka Banka, is also to
open a cultural-educational centre which will host representative offices of Slovenian
companies on Friday, 9 June in Gorizia.
Hosted in the renovated building of the former Kmecka banka, the KB Centre will
host 13 cultural, socioeconomic and political institutions, including a library, a
research institute and the Slovenian Cultural and Economic Association (SKGZ), a
minority organisation.
According to Peric, the company which employs 420 workers, "supports the active
role of Slovenian companies and strengthens the presence of Slovenians in the Udine,
Gorizia and Trieste provinces". KB 1909 posted a profit of EUR 613,000 in 2005.
It includes 26 companies active in the markets of Central and SE Europe, and deals in
managing financial and real estate investments as well as in manufacturing and
development of electronic parts and foodstuffs.
Its largest owners are the fund Ivan Trinko from Italy, while large owners from
Slovenian include Istrabenz, logistics company Intereuropa and port operator Luka
Koper.
Five Wines, two Slovenian, Crowned Kings at International Wine Show
The awards will be conferred at a ceremony staged at the Ljubljana City Hall on 13
June
Five wines, including two Slovenian vintages, were crowned world champions at the
52nd Ljubljana International Wine Tasting, which finished on Tuesday, 6 June.
The 2003 Ciconia Traminer from Slovenia's Radgonske Gorice was declared world
champion among dry white wines, the organiser Gospodarsko razstavisce fair said on
Wednesday, 7 June.
The same award went to the 2004 Wine made from dried grapes (produced by the
Bric vinery) among dry white wines with residual sugar.
Villanyi Caberbet Sauvignon Jammertal Dulo Selection 2003 from Hungary's Bock
Pince Kft and the 2003 Tannant dayman Castel La Puebla from Urugvay were
meanwhile crowned champions among dry red wines.
Sparkling wines also received their new king, with Brazil's Aurora Espumante
Moscatel, produced by Cooperativa Vinicola Aurora, taking the title.
The champions, selected from among 524 wine samples, were selected by 63 wine
tasters from all over the world.
The assessors moreover awarded four large gold, 66 gold and 84 silver medals during
the June 2 to 5 event.
The awards will be conferred at a ceremony staged at the Ljubljana City Hall on 13
June.
Share of Cleaner Energy Sources Increasing
The share of clean energy sources is increasing in Slovenia, as domestic brown coal
is being replaced by cleaner imported coal, industry is undergoing restructuring and
services account for an ever bigger share of the economy, according to the 2006
energy use projections adopted by the government
The share of clean energy sources is increasing in Slovenia, as domestic brown coal is
being replaced by cleaner imported coal, industry is undergoing restructuring and
services account for an ever bigger share of the economy, according to the 2006
energy use projections adopted by the government on Thursday, 8 June.
While the sources are getting cleaner, overall consumption is still growing: industry is
to use 0.5% more energy than last year, transport 0.9% more and other users 2.9%
more, the document suggests.
Oil derivatives will account for the bulk of final consumption this year (74.3%),
followed by electricity with 22.8%, natural gas with 14.7%, renewables with 9.4%,
heat with 4.2% and solid fuels with 1.6%.
Gas consumption is thus projected to be 5.7% smaller than last year, as non-energy
users are expected to use 29.5% less and several major industrial users switch to other
sources.
Diesel consumption is to rise 8.9% over last year, mostly as a result of greater demand
by road haulage companies. The consumption of petrol is set to decrease by the same
amount as Slovenian drivers increasingly switch to diesel engines.
The consumption of energy from renewables is to increase by 4.1% year-on-year.
There is expected to be a mixed record on emissions of harmful substances: while
sulphur dioxide emissions are to drop by 1.5%, those of CO2 are to increase by 0.5%
and nitrogen oxides by 1.2%.
Two Tabloids Slovenia's Top Periodicals
The daily tabloid Slovenske novice and the weekly Nedeljski Dnevnik, a separate
tabloid-style edition of the daily Dnevnik, were the most widely read Slovenian
periodicals in 2005 and in the first quarter of 2006, a survey shows
The daily tabloid Slovenske novice and the weekly Nedeljski Dnevnik, a separate
tabloid-style edition of the daily Dnevnik, were the most widely read Slovenian
periodicals in 2005 and in the first quarter of 2006, a survey shows.
Since the beginning of 2005, around 90,000 copies of Slovenske novice were sold per
quarterly, while the figure reached 91,370 in the first quarter of this year.
The leading serious paper Delo is in second place, however, the number of sold copies
dropped from around 75,000 in the first quarter of 2005 to 70,000 in the same period
this year.
Delo is followed by the dailies Dnevnik and Vecer. Yet, while Dnevnik sold around
49,000 copies in the first three months of 2006 over 46,800 year-on-year, Vecer's
quarterly circulation dropped from 50,000 to 47,000 in the same period.
The business daily Finance noted a rise from 11,000 to 12,000 copies, while the sports
daily Ekipa also registered a drop in sales from 7,600 to 7,000.
Nedeljski dnevnik leads among the weeklies with 130,000 copies sold per quarter of
the year, and is followed by the tabloid Lady (54,000), Nedelo - the Sunday edition of
Delo (52,000) and the religious paper Druzina (48,000).
The national readership survey, commissioned by the Advertising Chamber, also
showed that Cosmopolitan is the most popular monthly, while Zurnal tops the list of
free weeklies.
Three UMTS Licences Put up for Sale
The Slovenian Agency for Post and Electronic Communications (APEK) has
published a public tender for the awarding of three nation-wide UMTS/IMT-2000
licences at a minimum price of SIT 1.5bn (EUR 6.25m) each
The Slovenian Agency for Post and Electronic Communications (APEK) has
published a public tender for the awarding of three nation-wide UMTS/IMT-2000
licences at a minimum price of SIT 1.5bn (EUR 6.25m) each.
"Currently the price is as it is. I think it is realistic, motivating enough for foreign
investors," the head of APEK Tomaz Simonic told STA on Friday, 9 June.
He personally expects at least two domestic companies to apply, Slovenia's second
largest mobile operator Simobil, and the recently-established Tus mobil.
"I would also like to see a foreign company apply," he revealed.
The tender for the three radio frequencies, which is open for domestic and foreign
mobile providers, will close on 1 September.
It was published in the Official Gazette of the Republic of Slovenia on Friday, 9 June
and is also available on APEK's website www.apek.si.
Only one mobile operator, market leader Mobitel, currently has the UMTS licence;
Mobitel paid almost 100 million euros for the 3G licence in 2001.
All Shops to Reopen on Sundays
Employers and employees in the retail sector have broken a deadlock over the Sunday
opening of shops with an agreement that Sunday opening hours will be governed by
the sectoral collective agreement, not the trade act
Employers and employees in the retail sector have broken a deadlock over the Sunday
opening of shops with an agreement that Sunday opening hours will be governed by
the sectoral collective agreement, not the trade act.
The social partners are expected to finalise the collective agreement by 30 September,
the negotiators told the press on Friday, 9 June, adding that the compromise would
satisfy retailers and employees as well as consumers.
"The Calvary over opening hours has been dragging on for over two years...Any
solution that is not a result of social agreement is bad and inadequate," Economic
Affairs Minister Andrej Vizjak told the press.
He announced that the ministry would immediately draw up the appropriate
amendments to the trade act, but they will enter into force only after the new
collective agreement for trade is signed.
Until that is done, the current system will remain in place, as the amendments would
likely need several rounds of harmonising, Vizjak revealed.
The head of the Retail Trade Union Franci Lavrac welcomed the deal, adding that he
is convinced that the trade union's aim, namely to protect employees, has been
achieved.
Retailers were also pleased with the deal, with Peter Zavrl, the head of the Trade
Association at the Chamber of Commerce and Industry of Slovenia (CCIS), saying
that retailers have shown maturity by reaching the agreement.
According to the compromise, pregnant employees and those taking care of children
under the age of three will be exempt from Sunday work except if they agree to it in
writing.
Workers with pre-school children older than three can work only up to ten Sundays a
year, whereby every working Sunday must be followed by two off duty.
All other employees can work up to two Sundays a month and no more than 26 a year.
At the same time, the negotiators agreed that Sunday work will be paid double, with
work on special holidays such as Christmas or New Year's triple.
Employers and trade union representatives moreover agreed on the holiday allowance
for 2006, putting it at SIT 145,000 (EUR 602.81) and, in case of poor business results,
at no less than SIT 125,000 (EUR 519.66).
EU Vets Pleased Overall With Food-Processing Facilities
A team of vets from the European Commission's Food and Veterinary Office ended
their visit to Slovenia on 9 June, assessing the supervision of food-processing
facilities and production of foods of animal origin as good overall
A team of vets from the European Commission's Food and Veterinary Office ended
their visit to Slovenia on Friday, 9 June, assessing the supervision of food-processing
facilities and production of foods of animal origin as good overall.
The conclusions of the visit that began on 30 May were presented at the meeting, with
the inspectors also submitting several recommendations.
They mainly called for improved information flow between the competent authorities
for supervision of foods of animal origin should.
The inspectors also called on Slovenia to improve the contents of lab tests reports and
define more clearly the competencies in marking food-stuffs, the Agriculture, Forestry
and Food Ministry said.
The two inspectors moreover assessed as suitable the certificates of Slovenian
products destined for the Russian market, and as very good the handling of animals
prior to being slaughtered.
The second EU veterinary team to visit Slovenia this year came on top of the May
check-up of the legislation on authorities tasked with inspecting food quality, while
the third group of inspectors is expected in Slovenia in the autumn to evaluate animal
health care.
COMPANIES
Luka Koper Signs Deals with Two Israeli Export Companies
Slovenia's lone seaport operator Luka Koper has signed a cooperation agreement
with Agrexco and Arava, two major Israeli exporters of fruit and vegetables, which
would like to increase their foothold on European markets
Slovenia's lone seaport operator Luka Koper has signed a cooperation agreement with
Agrexco and Arava, two major Israeli exporters of fruit and vegetables, which would
like to increase their foothold on European markets, Luka Koper said on Monday, 5
June.
Agrexco and Arava believe that the Port of Koper is a suitable port and distribution
centre, as its fruit terminal offers the best conditions and a variety services for this
type of goods, the company said in a press release.
Agrexco supplies Western European markets through France's Marseille, while it has
selected the Port of Koper to expand sales to Central and Eastern Europe.
Arava has mainly used Luka Koper for its exports to the Netherlands, however the
second biggest Israeli export company of vegetables also exports to Russia.
Israeli companies export large amounts of vegetables to the EU, Russia and the US,
especially during winter, with the export figures increasing every year, the press
release also reads.
The agreement was signed by Luka Koper's CEO Robert Casar and member of the
board Aldo Babic during their visit to Israel the previous week.
Telco Launches 10 Gigabit Ethernet Backbone Link
The link will serve to improve communication between the capital and Slovenia's
second largest city, Maribor (NE), while an equally capable connection will soon link
Slovenia and Germany
National telco Telekom Slovenije launched on Monday, 5 June a new 10 Gigabit
Ethernet backbone link at its telecommunications centre in Ljubljana.
The link will serve to improve communication between the capital and Slovenia's
second largest city, Maribor (NE), while an equally capable connection will soon link
Slovenia and Germany.
The company moreover intends to continue upgrading its regional network centres in
Slovenia, and should in the autumn reach data speeds of up to one terabit per second,
Telekom Slovenije revealed.
The throughput of Telekom's backbone network is especially important for retail ISPs
as well as content, applications and voice services providers.
The first data link by Telekom Slovenije was established in 1991 and could carry data
with the speed of 9,600 bits per second. Five years later Telekom established a 128
Kbit/s link.
Krka's Zyllt Medicine Temporarily Banned in Serbia-Montenegro
Krka-Farma has already appealed against the decision
The commercial court in the Serbian city of Novi Sad has temporarily prohibited the
sale of the Zyllt drug, manufactured by Slovenian pharma company Krka.
The ban on all sales activities by Krka's Serbia-Montenegro subsidy Krka-Farma was
imposed on demand of the French pharma giant Sanofi Aventis, Krka said on
Tuesday, 6 June.
Krka-Farma has already appealed against the decision, however, the ban will stay in
place until a settlement is reached between the two companies, Krka's press release
also reads.
Sanofi Aventis requested the ban because it believes Krka-Farma was in breach of its
patent in connection with the drug's active ingredient Clopidogrelum in SerbiaMontenegro.
The court granted the proposal without calling Krka-Farma to the court.
According to Krka, the Zyllt drug is manufactured in a process that was arrived at by
Krka independently. Furthermore its properties do not violate patents granted in
Serbia-Montenegro.
"Krka-Farma at the same time filed a demand to ascertain that patents awarded to
Sanofi Aventis contrary to the then valid legislation, should be nullified," Krka
explained.
As the projected sales of the drug were low, Krka will not create any long-term
reservations in connection with the issue, the company added.
Infond Holding 2 Buys Majority Stake in Alpina
Four major owners of Slovenian footwear maker Alpina have sold their combined
56.56% stake in the company to financial group Infond Holding 2 for SIT 1.76bn
(EUR 7.3m)
Four major owners of Slovenian footwear maker Alpina have sold their combined
56.56% stake in the company to financial group Infond Holding 2 for SIT 1.76bn
(EUR 7.3m), the state-owned Restitution Fund (SOD), one of the sellers, said in a
press release on Wednesday, 7 June.
SOD was joined in the sale, which concludes the six-month long procedure of selling
Alpina's majority stake, by the state-owned Pension Fund Management (KAD), the
European Bank for Reconstruction and Development (EBRD) and financial group
Maksima Invest.
According to SOD, the companies will receive much more than they would have had
they accepted any of the bid from the first tender, which closed earlier this year.
SOD added that Infond Holding 2 offered SIT 15,010 (EUR 62.40) per share, which
is SIT 5,000 (EUR 20.79) more than was offered in the first tender.
Infond Holding 2, which is to purchase a total of 177,218 shares, was also chosen
because it presented the most appropriate vision of Alpina's development of all three
bidders.
Infond Holding's chief exec Matjaz Rutar told STA that "Alpina is a solid company
with a future". Its basic strategy is good and only minor corrections are needed, he
added.
He refused to say more about the deal, as the purchase will be finalised in the next 15
days.
The management of Alpina expressed satisfaction that the ownership structure has
been consolidated considering that the sellers had been looking for a buyer since
December.
"We are definitely counting on Infond Holding to endorse our development strategy
so that Alpina will continue to be a successful company," Alpina chief executive
Andraz Kopac told STA.
Although sales dipped by 7% last year to SIT 11bn (EUR 45.9m), Alpina upped its
net profit by 2.4% to SIT 211m (EUR 0.9m).
Siol Introduces HDTV
Slovenia's leading Internet provider Siol presented on Wednesday, 7 June its highdefinition television (HDTV) project which is to be launched as part of the upcoming
Football World Cup
Slovenia's leading Internet provider Siol presented on Wednesday, 7 June its highdefinition television (HDTV) project which is to be launched as part of the upcoming
Football World Cup.
As Siol representatives told the press, visitors of restaurants and pubs equipped with
HDTV will be able to watch all the 54 matches of the World Cup in Germany in high
definition quality - 1920x1080 pixels as opposed to the 704x480 standard.
Siol invested just over SIT 50m (EUR 208,646) into the project, which includes the
purchase of the exclusive rights for HDTV broadcast of the matches. Currently the list
of pubs participating is 42 names long.
"This-year's Football World Championships are a milestone event. When we found
out that the organisers decided to broadcast in high definition, we figured we should
take the opportunity to introduce a new generation of services," Siol's director Tomat
Berginc explained.
Zlata moneta 2 Buys Fifth of Logistics Group Viator&Vektor
Slovenian logistics group Viator&Vektor confirmed on Wednesday, 7 June that it has
sold 19.57% of its stocks to investment firm Zlata moneta 2
Slovenian logistics group Viator&Vektor confirmed on Wednesday, 7 June that it has
sold 19.57% of its stocks to investment firm Zlata moneta 2. According to Zlata
moneta 2, the deal was worth SIT 1.6bn (EUR 6.68m).
Another company acquiring a significant slice of Viator&Vektor's cake, 4,91%, was
bought by the relatively unknown Areal company, which is allegedly linked to Infond
Holding.
CEO: Elan Needs to Invest into Production, Despite Mortgage
Even though the 15-year bankruptcy procedure of ski equipment manufacturer Elan is
still ongoing and the building housing its production facilities is under mortgage, the
company still plans to invest into the factory, Igor Umek, chief exec of Elan's owner
Skimar said
Even though the 15-year bankruptcy procedure of ski equipment manufacturer Elan is
still ongoing and the building housing its production facilities is under mortgage, the
company still plans to invest into the factory, Igor Umek, chief exec of Elan's owner
Skimar said.
"The investments are a must if we want to be competitive," Umek told the press on
Wednesday, 7 June in Begunje na Gorenjskem, commenting on the likely autumn
EUR 2.6m investment into a new production facility for Elan's sailing vessels division
Elan Marine.
The company intends to embark on the project despite warnings by Elan administrator
Andrej Marinc, who has said that in case of unfavourable verdict, the company could
even lose ownership over all of its mortgaged facilities.
Skimar management believes that should the push come to shove, Elan would move
its production, even though that would cost it a few years of investments into
production.
However, as the combined value of claims by two Slovenian banks stand at SIT
21.5bn (EUR 89.38m), while the mortgaged assets are valued at SIT 4bn (EUR
16.62m), the move is a better option, believes Umek.
Skimar management is in talks with the two banks, yet a final solution seems
impossible until a mortgage claim between the bankrupt Elan, and one of the banks is
reached, Marinc added.
Ljubljana Dairies: Contentious Macedonian Milk not from Slovenia
The Ljubljanske mlekarne dairies told STA that the milk imported to Macedonia from
the Bosnian dairy in Tuzla owned by Ljubljanske mlekarne did not come from
Slovenia as is being suspected by the Macedonian authorities
The Ljubljanske mlekarne dairies told STA that the milk imported to Macedonia from
the Bosnian dairy in Tuzla owned by Ljubljanske mlekarne did not come from
Slovenia as is being suspected by the Macedonian authorities.
According to the Macedonian press agency Makfax, suggestions that the mentioned
milk came to Macedonia from Slovenia as opposed to the dairy in Tuzla, as officially
recorded, prompted the Macedonian government to launch an investigation.
Meanwhile, Ljubljanske mlekarne explained that the Tuzla factory only uses milk
provided by Bosnian farmers and that the controversial milk, while indeed processed
in line with the recipe of Ljubljanske mlekarne, does not originate in Slovenia.
Makfax also reports that the Macedonian government has decided to send a
diplomatic note to the government of Bosnia-Herzegovina calling on it to observe the
agreement on free trade and the trade quotas agreed between the two states.
Daily Vecer Shareholders to Get a Record EUR 4.16 Dividend
The decision, taken at the annual general meeting (AGM) means that Vecer will have
to pay out SIT 255.9m (EUR 1.06m) in dividend
The shareholders of the daily Vecer have voted in favour of a counter proposal by
newsstand operator Delo Prodaja, which means that they will get a record dividend of
SIT 1,000 (EUR 4.16) per share, instead of the management-proposed SIT 700 (EUR
2.91).
The decision, taken at the annual general meeting (AGM) on Thursday, 8 June, means
that Vecer will have to pay out SIT 255.9m (EUR 1.06m) in dividends.
The proposal was supported despite warnings by Vecer director Milan Predan, who
said that the EUR 2.91 dividend was a result of talks between the company's
management and supervisory boards.
Vecer shareholders also confirmed changes to the company's statute, facilitating the
process of issuing new publications.
Mercata Buys Stake in Shipping Firm
Slovenian financial group Mercata has used its pre-emptive right and purchased a
21% stake in shipping company Splosna plovba Portoroz
Slovenian financial group Mercata has used its pre-emptive right and purchased a
21% stake in shipping company Splosna plovba Portoroz that German shipping firm
Peter Doehle had been eyeing too.
Mercata bought the stake from the bank Banka Koper for US$ 16m with an EUR
12.5m loan that the company's supervisory board approved on Thursday, 8 June, the
company said in a press release on Friday, 9 June.
This will raise Mercata's stake in Splosna plovba to 40%, making it the second largest
owner after the state which holds 43% of the share capital.
German shipping firm Peter Doehle, a long-time partner of Splosna plovba, had also
expressed interest in the stake, but Mercata had the pre-emptive right.
Peter Doehle is already an indirect owner of Splosna plovba through its stake in
investment company Pomorska druzba, which owns 15.8% of the shipping firm.
Helios Shareholders Get Dividends of EUR 12.2 per Share
The remaining SIT 2.3bn (EUR 9.6m) will remain undistributed
The shareholders of chemical company Helios have voted to earmark about one fifth
of the company's distributable profit, or SIT 642m (EUR 2.7m), for dividends
amounting to SIT 2,981 (EUR 12.2) per share.
The remaining SIT 2.3bn (EUR 9.6m) will remain undistributed, the AGM decided on
Friday, 9 June.
The shareholders moreover authorised the management to buy up to 10% of own
shares at a price up to 10% higher of lower that the three-month average price on the
stock market.
SLOVENIA IN BRIEF
Portuguese, Slovenian Culture Ministers Call for More Cooperation
Slovenian Culture Minister Vasko Simoniti and his Portuguese counterpart Isabel
Pires de Lima called for increased cooperation in culture after holding talks in
Ljubljana on Tuesday, 6 June. Cooperation in literature needs to be strengthened in
particular, they said.
Serbia-Montenegro Embassy in Slovenia Renamed Serb Embassy
The Embassy of Serbia-Montenegro in Ljubljana officially became the Embassy of
Serbia on Monday, 5 June, the Slovenian Foreign Ministry told STA on Wednesday, 7
June.
Parliamentary Committee Confirms Changes to Job-Seekers' Act
The parliamentary committee for labour, family, social affairs and the disabled
endorsed the changes to the job-seeker and insurance against unemployment act late
on Wednesday, 7 June, sending them to parliament despite a walkout by all three
opposition parties.
Slovenia, Austria, Hungary Check State of Environment at Border
The president of the Slovenian Court of Audits Igor Soltes and his Austrian and
Hungarian counterparts Josef Moser and Arpad Kovacz, have signed an audit report
on the protection of the environment in the area of the three countries' borders in the
2000-2004 period.