Slovenia Business Week no 42, December 27, 2006 Table of Contents:
Slovenia Business Week no 42, December 27, 2006
Table of Contents:
Government Confirms Free Movement of Labour for Romania, Bulgaria ............................ 8
State-Run SOD Fund Cuts Loss from EUR 459m to EUR 150m ........................................ 13
Reprogramming to Cut Motorway Company's Interest Payments ....................................... 13
German and Slovenian Defence Ministers Discuss EU Presidency .................................... 28
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HEADLINES
PM Does not Expect Excessive Price Hikes Due to Euro Switch
Prime Minister Janez Jansa told the MPs that government measures, including a pledge not to raise capped prices and the implementation of dual pricing, would serve to prevent price hikes stemming from the approaching euro changeover
Prime Minister Janez Jansa told the MPs on Monday, 18 December that government measures, including a pledge not to raise capped prices and the implementation of dual pricing, would serve to prevent price hikes stemming from the approaching euro changeover.
Responding to questions from the floor at the continuation of parliament's December session,
Jansa said that he did not expect any serious issues regarding such hikes.
"We are not seeing any drastic changes... The changes that were detected are much smaller than in any other comparable country during its euro adoption process," the PM replied to the
National Party (SNS) deputy Saso Pece.
Franc Kramberger of the coalition People's Party (SLS) meanwhile quizzed Jansa on when
Slovenians could expect a completely liberalised flow of people and goods in the EU.
The PM answered that Slovenia had passed all the necessary political decisions, but problems emerged in putting them into practice.
If Slovenia's entrance to the Schengen no-border zone is delayed by a year, Slovenia could incur around EUR 100m in expenses.
However, with the upgrade to the Schengen Information System being confirmed at the recent
EU summit, Slovenia is expected to join the Schengen zone by March 2008.
Slovenian-Kuwaiti Business Forum Established
Janez Skrabec, the head of Slovenian civil engineering company Riko, and Kuwaiti businessman Hussein Al Kharafi signed a charter launching the Slovenian-Kuwaiti business forum which is to provide the platform for business cooperation between the two countries
Janez Skrabec, the head of Slovenian civil engineering company Riko, and Kuwaiti businessman Hussein Al Kharafi signed on Tuesday, 19 December a charter launching the
Slovenian-Kuwaiti business forum which is to provide the platform for business cooperation between the two countries.
According to Skrabec, the forum will present a meeting point for Slovenian companies entering the Kuwaiti market and vice versa. It will be presided by Al Kharafi, while Skrabec will be the vice-president.
When it comes to economic cooperation, the Slovenian government wishes to look beyond neighbouring markets, said Skrabec, adding that the forum enjoys strong support by the
Economy Ministry.
Slovenia and Kuwait have many things in common and their size is comparable, said Skrabec, adding that the countries can help each other in entering neighbouring markets.
Spending several days in Slovenia, Al Kharafi, one of the richest men in the world, highlighted the kindness of Slovenian people as a good starting point for business talks.
Expressing his belief that the Slovenian economy was in excellent shape, Al Kharafi said that this step would undoubtedly help enhance cooperation between the two countries.
Meanwhile, Zijad Becirovic, the director of the Ljubljana-based International Institute for
Middle-East and Balkan Studies (IFIMES), told STA that economic cooperation between
Slovenia and Kuwait was modest, leaving a lot of room for improvement.
According to Becirovic, potential for cooperation lies primarily in the areas of logistics,
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mechanical and electronic engineering, steel industry, spa tourism and in joint investments in the Balkans.
The way for the forum was paved during a visit by Prime Minister Janez Jansa and a strong business delegation to Kuwait on 14 November.
First Choice Launches Ljubljana-Gatwick Charter Flights
Representatives of First Choice told the press that the company would bring over 2,000
British tourists to Slovenia between 23 December and 24 March
British tour operator First Choice is launching weekly charter flights between Ljubljana and
London's Gatwick Airport, with a view to opening ski resort Kranjska Gora as a destination for family tourism.
Representatives of First Choice told the press on Wednesday, 20 December that the company would bring over 2,000 British tourists to Slovenia between 23 December and 24 March.
First Choice sales manager Max Mason said that over 1,300 packages have already been sold, while an additional 400 tourists will come to Kranjska Gora via Salzburg, Austria.
He said his company was presenting Slovenia as a country with a similar standard of accommodation as Andorra for prices that are equal or below those in Bulgaria.
Due to the high demand, the company plans to launch charter flights from Manchester for the next skiing season, expanding the offer of accommodation to Bled and the neighbouring ski resorts of Kobla and Vogel.
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INTERNATIONAL COOPERATION
Kuwaiti Billionaire Looking for Opportunities in Slovenia
Kuwaiti businessman Hussein Al Kharafi met Slovenian Economy Minister Andrej Vizjak for talks that focused on investment opportunities in Slovenia and potential for joint ventures in
Southeastern Europe
Kuwaiti businessman Hussein Al Kharafi met Slovenian Economy Minister Andrej Vizjak on
Monday, 18 December for talks that focused on investment opportunities in Slovenia and potential for joint ventures in Southeastern Europe, the Economy Ministry said.
Vizjak and Al Kharafi reportedly agreed that a regular cargo ship line between the Port of
Koper and Kuwait would provide a crucial boost to bilateral trade.
Talks also touched on the visa regime, which makes it hard for Kuwaiti businessmen to visit
Slovenia, the press release reads.
"The successful visit of Kuwait provided the necessary push for stronger cooperation...Slovenia as well as Kuwait play an important role in their respective regions, and it is up to businessmen to identify opportunities and take advantage of then," Vizjak was quoted as saying.
Al Kharafi, whose family is 29th on Forbes' list of the world's richest people, was invited to
Slovenia by Riko and the Ljubljana-based International Institute for Middle-East and Balkan
Studies (IFIMES).
Slovenia Establishes Diplomatic Ties with Myanmar
The documents to that effect were exchanged at the headquarters of Slovenia's mission in New
York by Ambassador Roman Kirn and his Burmese counterpart Kyaw Tint Swe
Slovenia has established diplomatic relations with Myanmar, the country in southeastern Asia formerly known as Burma. The documents to that effect were exchanged at the headquarters of Slovenia's mission in New York on Monday, 18 December by Ambassador Roman Kirn and his Burmese counterpart Kyaw Tint Swe.
In the brief meeting on the occasion, Ambassador Kirn informed his opposite number of
Slovenia's preparation for EU presidency in the first half of 2008, and provided him with general information about the Slovenian economy.
Ambassador Tint Swe also talked about the state of Myanmar's economy, noting that it expanded by 13% last year. The ambassadors agreed their countries had the potential to boost economic cooperation.
Ambassador to Cyprus Hands Credentials to President
Slovenian Ambassador to Cyprus Vladimir Klomanic handed his credentials to the President of the Republic of Cyprus Tassos Papadopoulos
Slovenian Ambassador to Cyprus Vladimir Klomanic handed on Monday, 18 December his credentials to the President of the Republic of Cyprus Tassos Papadopoulos. He pointed out that Slovenia supported the UN efforts to solve the Cyprus issue and that it was ready to help find a peaceful solution for the unification of the island, Cypriot press agency CNA reported.
The Slovenian ambassador, who is based in Athens, assessed the relations between the two countries as excellent, adding that the relations will get even better after the scheduled visits to Slovenia by the Cypriot president, foreign minister and parliament speaker in 2007.
Papadopulos has also been invited to an official ceremony upon the launch of the euro beginning in 2007 and received the official invitation for his visit to Slovenia in May 2007.
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Regarding the cooperation of the two countries within the EU, Kolmanic said that "the countries are similar in terms of size and population, have many things in common and therefore should cooperate even more to get their voice heard."
Ad on CNN Deemed Successful
According to a survey by the Slovenian Tourism Board (STO), some 16% of viewers on key markets were incited to visit the country, while 15% had been to Slovenia already
An advertisement promoting Slovenia on cable news network CNN International Europe this year seems to have achieved its goal of raising Slovenia's profile. According to a survey by the Slovenian Tourism Board (STO), some 16% of viewers on key markets were incited to visit the country, while 15% had been to Slovenia already.
The ad "Slovenia. A diversity to discover" was aired on CNN between 8 May and 18 June, and again between 18 September and 6 November.
The ad highlights the Slovenian coast, saltpans, world-famous white Lipizzaner horses, vineyards and other attractions.
The total cost of making and broadcasting the ad is estimated at SIT 187m (EUR 780,000).
The STO survey was carried out in the key tourism markets for Slovenia, France, Great
Britain, Germany and Italy, including 2,000 respondents in each country.
In Italy and France, 13.5% and 10.2% of the respondents recalled the ad while the figures were just over 7% for Germany and Great Britain.
Among those who were able to remember the ad, some 7% said that it incited them to visit the main Slovenian tourism portal, www.slovenia.info.
Over 16% said that they would visit Slovenia based on the ad, with the figures ranging from
30% for France to 12% for Germany.
"We can conclude overall that the campaign...has fulfilled the objective of raising Slovenia's profile as a tourist destination in countries where the survey was carried out," STA said in a press release on Wednesday, 20 December.
Successors to Yugoslavia Divide Part of Diplomatic Assets
The successors to the former Yugoslavia managed to divide 44 embassy and consulate buildings around the world
The successors to the former Yugoslavia managed to divide 44 embassy and consulate buildings around the world in a meeting in Zagreb on Thursday, 21 December. Slovenia got the premises of the former Yugoslav embassy in Rome, as well as consulates in Klagenfurt and Milan, the Slovenian Foreign Ministry said on Friday, 22 December.
According to the framework succession agreement that the successor states signed in 2001,
Slovenia is entitled to 14% of the assets held by the former Yugoslavia.
In a previous round of talks Slovenia got the embassy building in Washington, DC, which means it got all that it is entitled to and wanted, the Foreign Ministry said.
The meeting of the committee in charge of the division of diplomatic assets came after an intermission of over a year and a half.
The negotiators agreed that the next meeting would be held in Macedonia on 15 and 16
January. The ministry said the talks in Skopje would focus on the division of embassy assets in northern and Sub-Saharan Africa as well as Asia.
The framework succession agreement, which was signed in Vienna on 29 June 2001, entered into force on 2 June 2004 when Croatia became the last successor to ratify it.
Slovenia got the embassy building in Washington, DC, Croatia the embassy in Paris, the then
Serbia-Montenegro the residence in Paris, Macedonia the consulate general in Paris and
Bosnia-Herzegovina the embassy in London.
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EUROPEAN UNION
Survey: Slovenia among Strongest Supporters of EU Enlargement
Some 74% are in favour of admitting new members to the block, compared to the EU average of 46%, according to the latest Eurobarometer survey
Slovenians are among the strongest supporters of EU enlargement. Some 74% are in favour of admitting new members to the block, compared to the EU average of 46%, according to the latest Eurobarometer survey.
Slovenians trail only Poles (76%), and are even more enthusiastic about enlargement than the two countries that are about to join the EU, Bulgaria and Romania, and two candidates for membership, Turkey and Croatia.
The survey also revealed that 57% of Slovenians support EU membership, which is only 4 percentage points above the EU average.
Some 62% perceive the block as positive, which places Slovenia after the Irish, 73% of whom see the EU as positive. The EU average in this category fell from 50% to 46%.
The level of trust in the European Commission and the European Parliament is the highest in
Slovenia (73%), while the EU average in these two categories stands at 48% and 52%.
Slovenians proved rather conservative when asked whether gay marriage should be allowed throughout Europe. Some 31% are in favour of gay marriage, compared to the EU average of
44%.
EU citizens overall as well as Slovenians even are more reserved when it comes to cannabis.
Overall some 26% believe that personal consumption of marijuana should be legalised throughout Europe, with the number standing at 22% in Slovenia.
Slovenia Satisfied with Marine Strategy Objective
Slovenia welcomes the provision stating that trans-boundary environmental impacts should be considered in protecting the sea
The EU environment ministers reached agreement on Monday, 18 December on the Marine strategy directive. Slovenia welcomes the provision stating that trans-boundary environmental impacts should be considered in protecting the sea, Slovenian minister Janez Podobnik said after the meeting.
"We know which issue is important when it comes to trans-boundary impact, that is the Gulf of Trieste, that is big investments which are planned there," Podobnik said, referring to liquefied natural gas terminals that are to be constructed in the Italian part of the gulf.
Slovenia especially supports the provisions of the directive that give all the members the same possibilities for reaching environmental objectives, Podobnik said.
The regions and subregions defined in the directive have different environments and negative impacts. Moreover, some regions fall under jurisdictions of different countries, which significantly influences the reaching of the directive's objectives, he explained.
In line with the directive, Slovenia should prepare a strategy for the protection of the part of the Adriatic sea under its sovereignty and harmonise it with Italy, Croatia, Bosnia-
Herzegovina, Montenegro and Albania.
The ministers also discussed climate change, which will be one of the priorities during
Slovenia's EU presidency in the first half of 2008, Podobnik said.
Slovenia has been successfully combating climate change, Podobnik said, adding that in the near future he would establish a special sector for climate change at the ministry.
Podobnik also explained that the key problem in climate policy in Slovenia was traffic.
"Slovenia has a specific problem - transit traffic. Approximately 15-20% of all traffic
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emissions come from transit," Radovan Tavzes of the ministry explained. The aim is that
Slovenia and the EU share this burden, he added.
Tavzes also said that public transport represented another problem in reaching the Kyoto objectives, since Slovenia is lagging behind in public transport and the emissions from the daily migrations are too high.
"We believe that Slovenia, with all the obligations and rights coming from the carbon sinks, will reach the Kyoto objectives," Tavzes said, adding that these objectives are a bit unfair to
Slovenia.
Government Confirms Free Movement of Labour for Romania, Bulgaria
Slovenia will not enact restrictions on the free movement of workforce from Bulgaria and
Romania
Slovenia will not enact restrictions on the free movement of workforce from Bulgaria and
Romania, the government agreed on its session on Wednesday, 20 December. The workers from the two soon-to-become EU members will be able to work without restrictions from 1
January onwards when the two countries join the EU.
According to a press release by the government's PR and Media Office, such a decision is in line with Slovenia's endeavours towards free flow of labour in the EU.
Workers from the two countries will also not endanger the Slovenian labour market, the cabinet agreed.
A total of 13 Bulgarians and 12 Romanians performed services in Slovenia in October, while additional 112 Bulgarians and 126 Romanians were employed in the country.
The cabinet will perform monthly monitoring of employment of foreigners. Should there be any disturbances on the labour market, the cabinet has a chance to enforce a safeguard clause, the press release also reads.
EU Says Everyone Seems to Be Ready for the Euro in Slovenia
The European Commission believes that the final practical changeover preparations are well under way and everybody, from the banks to the retail sector and consumers themselves, seems to be ready
The European Commission believes that the final practical changeover preparations are well under way and everybody, from the banks to the retail sector and consumers themselves, seems to be ready.
"We wish Slovenians all the best and may they be as excited by the adoption of the euro as we were five years ago," Amelia Tores, spokeswoman for the European commissioner for monetary and economic affairs, said in Brussels on Thursday, 21 December.
The Commission says that commercial banks have started receiving euro notes in early
December and disbursed them to retailers. The same happened with coins, which the central bank started shipping to commercial banks in mid-September.
Consumers themselves have been able to get euro kits, which typically contain several of the eight coin denominations from the 1-cent to the 2-euro coin, worth EUR 12.52. A total of
450,000 mini-kits have been prepared.
Consumers also appear to be adhering to a campaign, launched by Slovenian banks beginning of December, for them to deposit tolar cash in their accounts at the euro conversion rate and free of charge, so as to reduce the backflow of tolar banknotes and coins in January.
The Commission notes that Slovenian companies are confident the changeover will be a smooth operation for them and for consumers. More than 97% of the businesses polled mid-
November in a flash Eurobarometer survey expect their accounting, invoicing and payroll systems to be fully ready for switching to the euro.
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"Significantly, the large majority (93%) also say that they have no intention to raise their prices on the occasion of the changeover. Regrettably, almost 7% admitted to plan to adjust prices upwards. This is particularly the case among hotels and restaurants," the Commission's press release reads.
Even though the government has recently adopted a commitment for preventing unjustified price rises and recommended consumers to remain vigilant towards such unfair practices, the
Commission points out that consumers themselves must be on the alert during the changeover period.
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LEGISLATION
Amended Public Procurement Legislation in Effect
Reformed public procurement legislation took effect on 23 December, separating public contracting for water management, energy, transport and postal services from public procurement in other areas
Reformed public procurement legislation took effect on Saturday, 23 December, separating public contracting for water management, energy, transport and postal services from public procurement in other areas.
The amended public procurement act and the new public procurement in water management, energy transport and postal services act are to make public contracting more transparent and ensure effective expenditure of public funds.
The classic public procurement of construction, goods and services is separated from the procurement in the above sectors also in the EU. This means that the new piece of legislation transposes the relevant EU regulations.
The EU introduced uniform regulations governing public procurement in individual sectors due to their specific role and the special relation between the state and those sectors.
Companies in the mentioned sectors operate in rather closed markets as the authorities often grant them exclusive licences to provide services.
The regulations on public procurement in these sectors as a rule correspond to the rules governing classic public procurement, such as the protection of competition and equal treatment of bidders.
The regulations binding on contractors for the mentioned sectors are generally more simple.
The threshold value beyond which such procurement has to be published in the Official
Journal of the European Communities is nearly three times as high as that for classic procurement of goods and services.
Procurement of goods and services in water management, energy, transport and postal sectors has to be published in the Journal if the value of the contract exceeds EUR 422,000, while the threshold for construction is EUR 5.278m.
The reformed legislation does not stipulate a procedure for contracts up to EUR 10,000, or up to EUR 20,000 in construction. Selection procedure is meanwhile obligatory for the purchase of goods or services of between EUR 10,000 and EUR 40,000 (EUR 20,000-EUR 80,000 in construction).
When goods or services top EUR 40,000 (EUR 80,000 in construction), public procurement has to be posted on a special public procurement portal, or, until this is set up, published in the
Official Gazette. A public tender-opening is obligatory.
The purchase of goods and services exceeding European threshold values - EUR 137,000 for goods and services and EUR 5.278m for construction procured by government bodies and local communities - are again governed by different regulations.
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STATISTICS/FORECASTS
October Unemployment Rate at 8.9%
The unemployment rate for the first three-quarters of the year stood at 9.6%
Slovenia's registered unemployment rate for October was 8.9%, up 0.1 percentage point on
September. The unemployment rate for the first three-quarters of the year stood at 9.6%, according to Monday, 18 December report from the National Statistics Office.
As many as 81,302 jobless people registered in October, which is 1.3% more than in
September. While the unemployment rate among men was 7.2%, it reached 11% among women.
The country's labour force in the month totalled 915,023, out of whom 833,721 were in paid employment. Out of these, 83,642 were self-employed.
Report Highlights Ageing as Slovenia's Top Challenge
Ageing represents the biggest challenge for Slovenia as projections show that the number of people aged over 65 will double by 2050, while the number of over 85-year olds will treble, according to the "Social Outlook 2006" report
Ageing represents the biggest challenge for Slovenia as projections show that the number of people aged over 65 will double by 2050, while the number of over 85-year olds will treble, according to the "Social Outlook 2006" report, presented on Wednesday, 20 December by
IMAD, the government's economic think tank.
The report by the government Institute for Macroeconomic Analysis and Development
(IMAD) however paints a positive picture overall despite momentous political and economic changes in the past decade.
According to Jana S. Javornik, the share of the poor dropped from 14% to 11.9% between
1998 and 2002. The number of middle-class citizens rose from 81 to 83.2%, while the number of the rich dropped by 0.2 percentage points to 4.9%.
The poverty risk level was reduced by 1.8 percentage points between 1998 and 2003 and stood at 10% in 2003. Slovenia has the second lowest level of poverty risk in the EU, trailing the Czech Republic with 8%. The EU average meanwhile stands at 15%.
Javornik pointed to social transfers as major contributors to reducing the risk of poverty.
Excluding these, the poverty risk level would stand at 16.2% in Slovenia and 26% in the EU.
Those most at risk of poverty include people over 65 years who live alone (39.9%), followed by unemployed men with 38.8%.
Women (11.4%) are more at risk of becoming poor than men (8.6%), Javornik told the press.
Business Sentiment Unchanged in December
December brought no changes to the seasonally adjusted business sentiment indicator in comparison with the month before
December brought no changes to the seasonally adjusted business sentiment indicator in comparison with the month before. It remained 8 percentage points higher year-on-year and
13 percentage points above the long-term average, the National Statistics Office said on
Friday, 22 December.
The manufacturing confidence index shed 1 percentage point in comparison with November, due to a drop in the expectations for the next three months. It was up 7 percentage points yearon-year and 13 points above the long-term average.
Confidence in retail remained level, while construction confidence index shed 2 percentage points.
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Confidence in the service sector added 1 percentage point over last month, while the consumer confidence index dropped 1 point, as consumers expressed pessimism over the country's economy in the next twelve months.
The business sentiment indicator is a weighted average of the confidence indicators in manufacturing, retail and the consumer confidence indicator, which are in turn calculated with the aid of surveys on business trends in the fields.
CCIS Sees Several Problems Ahead for Economy
The Chamber of Commerce and Industry of Slovenia (CCIS) believes that structural unemployment, slow growth of value added and the small share of high-tech exports present the biggest risks for the Slovenian economy
The Chamber of Commerce and Industry of Slovenia (CCIS) believes that structural unemployment, slow growth of value added and the small share of high-tech exports present the biggest risks for the Slovenian economy. However, the current economic situation is upbeat, acting CCIS president Samo Hribar Milic said in Ljubljana on Friday, 22 December.
According to Hribar Milic, Slovenia will see a rise in the number of older people and booming demand for unskilled labour.
Slow growth of added value means a slower growth of wages. Calculations show that the average Slovenian paycheck will reach the Austrian average in 27 years, barring changes in the economic environment.
Other risks include a lack of foreign direct investments, not enough venture capital and the rising rate of corporate taxation.
Companies also have to worry about the lack of flexibility of the labour market, ageing population and the loss of impact on the national monetary policy with the 1 January 2007 euro switch, he said.
The acting CCIS chairman, who succeeded long-time president Jozko Cuk on 22 November, meanwhile welcomed the cabinet's decision to gradually phase out payroll tax, simplify tax procedures and cut red tape.
He assessed the state of the Slovenian economy as positive, as the country had reached 82% of the average EU GDP, economic growth (at nearly 5% in 2006) had surpassed projections and inflation remains stable.
Hribar Milic moreover announced that the CCIS would draft a white paper on competitiveness which is to include tangible measures to make the business environment more competitive.
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FINANCE
State-Run SOD Fund Cuts Loss from EUR 459m to EUR 150m
The fund's upbeat results are the consequence of acquiring shares of some of Slovenia's top companies and the acquisition of the second issue of its own bonds
The state-run Restitution Fund (SOD) managed to cut loss from SIT 110bn (EUR 459m) in
2005 to SIT 36bn (EUR 150m) in 2006, a result of its investment strategy, SOD chairman
Marko Pogacnik told the press on Tuesday, 19 December.
The fund's upbeat results are the consequence of acquiring shares of some of Slovenia's top companies and the acquisition of the second issue of its own bonds.
Also contributing to SOD's more than halving its loss were higher dividends, good economic conditions and a stable macroeconomic environment, Pogacnik added.
The current value of SOD's capital investment stands at SIT 233.6bn (EUR 974.8m), while the fund's investment portfolio amounts to SIT 55.3bn (EUR 230.8m).
According to Pogacnik, the Restitution Fund successfully collects funds to pay out denationalisation obligations, compensations for confiscation of property and reimbursements for war-time and post-war violence.
SOD also reduced the number of its stakes in companies from 153 to 104 in 2006 and plans to sell a further 60 stakes in 2007. It plans to pay out a total of SIT 47bn (EUR 196m) in the coming year.
The fund will continue to efficiently manage its portfolios in line with the government strategy of a gradual withdrawal from the economy, Pogacnik also told the press.
Reprogramming to Cut Motorway Company's Interest Payments
The reprogramming will reduce interest and enter into force on 1 January 2007
The Motorway Company (DARS) signed on Tuesday, 19 December annexes to seven credit contracts, reprogramming a quarter (SIT 96.06bn/EUR 401m) of its existing loans. The reprogramming will reduce interest and enter into force on 1 January 2007.
DARS said in a press release that the changed conditions were accepted by the majority of the
15 banks that have issued loans to DARS.
The reprogramming will reduce expenses for DARS, which had to increase indebtedness after the state started to reduce the budget funds allocated for the company.
Survey: Slovenians Well Informed About Euro Changeover
Counting down the final days to the euro changeover, the majority of Slovenians feel they are sufficiently informed about the details concerning the adoption of the new currency, a survey commissioned by Banka Slovenije, the central bank, revealed
Counting down the final days to the euro changeover, the majority of Slovenians feel they are sufficiently informed about the details concerning the adoption of the new currency, a survey commissioned by Banka Slovenije, the central bank, revealed on Wednesday, 20 December.
The biggest concern is an increase in prices and people would also like additional information concerning the measures against unwarranted price hikes and the rules on the rounding up of prices.
The December survey largely corroborates the findings already reached by similar surveys carried out in June and September. This also goes for the level of general knowledge about the euro, which has even improved slightly as E-day approaches.
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An improvement was for example recorded in the knowledge concerning the security features of the euro bills. While more than half were still unable to name even one, the share of those who named more than merely the security thread has increased noticeably.
The majority said the shift would not affect their attitude towards coins. On the other hand, more than 40% revealed they had stopped using the little worth tolar coins at some time in the past.
The survey was carried out by the Ninamedia polling agency on 1,000 respondents between
11 and 13 December.
Russia to Settle Clearing Debt over Three Years
Russia is to settle the US$ 129m clearing debt to Slovenia in goods and services over three years under an agreement that Russian and Slovenian negotiators initialled on 20 December
Russia is to settle the US$ 129m clearing debt to Slovenia in goods and services over three years under an agreement that Russian and Slovenian negotiators initialled on Wednesday, 20
December.
The accord determines that Russia will have to pay cash plus interest if it fails to settle the debt in three years, Finance Minister Andrej Bajuk and Economy Minister Andrej Vizjak told the press in Ljubljana on Thursday, 21 December.
According to Bajuk, interest of Libor plus 0.5% starts running on the day that the agreements takes effect. Russia would have to pay in 30 days after the expiry of the three-year period if it fails to settle the debt before.
The agreement is crucial, as it closes an issue of 15 years that neither Slovenia nor Russia can be proud of, Vizjak said, adding that the debt had been interest-free for Russia all this time.
Vizjak said the government would have the agreement on the agenda on 4 January. He hopes that the Russian government will do the same as soon as possible.
The debt, which stems from trade between the former Soviet Union and the former
Yugoslavia, has been a topic of discussions since Slovenia's independence in 1991.
Although the countries reached an agreement in principle in December 2003, Russia later shied away from the deal.
Talks on the issue hit a standstill in 2004 and were opened again in May this year, during a visit by PM Janez Jansa to Moscow, as Russia unveiled a new proposal.
Pension Institute Projects Balanced Budgets for 2007, 2008
The governing body of the Pension and Disability Insurance Institute (ZPIZ) confirmed financial plans for 2007 and 2008 which project balanced budgets with revenues and expenditures to the tune of EUR 4.06bn in 2007 and EUR 4.3bn in 2008
The governing body of the Pension and Disability Insurance Institute (ZPIZ) confirmed on
Thursday, 21 December financial plans for 2007 and 2008 which project balanced budgets with revenues and expenditures to the tune of EUR 4.06bn in 2007 and EUR 4.3bn in 2008.
The amended financial plan for 2007 has been trimmed down by EUR 61.2m based on changed estimates of pension and disability contributions and the amount of transfers, financial director Zdenka Cerjak told the ZPIZ council.
At the same time, it is expected that spending on pensions, inflation and wage increases will be lower than originally forecast, she said.
ZPIZ expects that the state-owned Pension Fund Management (KAD) would contribute some
EUR 39.1m annually to cover the gap between expenditures and revenues.
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LJSE Shareholders Join Forces in the Face of OMX Bid
The shareholders of Ljubljanska borza, the manager of the Ljubljana Stock Exchange (LJSE), have decided to join forces in order to form a unified position in talks with the Sweden's OMX group, which recently published a takeover bid for the Ljubljana bourse operator
The shareholders of Ljubljanska borza, the manager of the Ljubljana Stock Exchange (LJSE), have decided to join forces in order to form a unified position in talks with the Sweden's
OMX group, which recently published a takeover bid for the Ljubljana bourse operator.
The association of stock market members told STA on Friday, 22 December that a shareholders' agreement would be signed. No additional details have been disclosed.
Ljubljanska borza has 31 shareholders - banks and stock brokerages. The biggest single owner is the bank Probanka, which has a 9.91% stake.
Probanka chief executive Romana Pajenk told STA that the bank has not even bothered to study the bid, since the offer of SIT 30,000 (EUR 125.18) per share, which values the company at EUR 4.2m, is much too low.
Given this offer, the bank has no reason whatsoever to even consider selling, she said.
OMX chairman Henri Bergstroem meanwhile told the daily Delo that the owner of stock exchanges in Scandinavia and the Baltic was willing to negotiate the price as well as the acquisition conditions with the shareholders.
If the acquisition succeeds, the LJSE could become a regional centre for Southeastern Europe, he said.
OMX was created by the merger of the Stockholm, Helsinki and Copenhagen stock markets.
It also owns the stock exchanges in Riga, Tallinn and Vilnius.
A total of 742 companies are listed on OMX, which controls around 80% of securities trading in the Scandinavian and Baltic states.
The LJSE meanwhile lists 201 companies and has a market capitalisation of SIT 4,554bn
(EUR 19bn).
Ljubljana Stock Exchange
Following several weeks of strong growth, profit taking took its toll on the Ljubljana Stock
Exchange last week, dragging the main market SBI 20 index 19.13 points lower on the week to 6,405.15
Following several weeks of strong growth, profit taking took its toll on the Ljubljana Stock
Exchange last week, dragging the main market SBI 20 index 19.13 points lower on the week to 6,405.15. The SBI TOP index of the six biggest blue chips shed 8.09 points to 1,484.51.
Brokers concluded a total of SIT 15.19bn (EUR 63.38m) of deals in a week of vibrant trading,
SIT 8.12bn (EUR 33.88m) coming in block trade.
Pharma company Krka remained the most coveted share, clocking up deals worth SIT 1.24bn
(EUR 5.17m), out of which SIT 995m (EUR 4.15m) represented block deals. The item added
1.64% to SIT 188,733 (EUR 787.57).
Bread and pasta maker Mlinotest was the second most active share. However, nearly 96% of its SIT 741m (EUR 3.09m) turnover came in block deals. Mlinotest added 1.5% to SIT 1,750
(EUR 7.30).
Energy company Petrol also posted a quite busy week, but was one of the prime targets for profit taking. The share lost 4.1% to SIT 119,391 (EUR 498.21) on deals worth 328m (EUR
1.37m).
Petrol was joined on its downwards path by airport operator Aerodrom Ljubljana (-3.78% to
SIT 13,486/EUR 56.28), holding Sava (-3.3% to SIT 54,127/EUR 225.87) and bread and pasta maker Zito (-2.51% to SIT 40,828/EUR 170.37).
There were plenty of winners though. Food company Droga Kolinska continued its ascent, soaring by 13.19% to SIT 4,682 (EUR 19.54). The other high risers included lesser-known
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names: retailer Emona Obala added 11.11% to SIT 550 (EUR 2.30) and grinding wheel manufacturer Comet 10% to SIT 2,530 (EUR 10.56).
The free market meanwhile saw investment firms ending the week mainly in the black, pushing the PIX investment fund index 25.03 points higher to 5,099.52.
The BIO bond index shed 0.65 points to 119.31.
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.60 (-0.01)
U.S. dollar (USD) - SIT 181.59 (-1.17)
Swiss franc (CHF) - SIT 149.52 (-0.41)
British pound (GBP) - SIT 356.82 (-0.81)
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BRANCH INFORMATION
Poll: State's Role in Development of Internet Satisfactory
Slovenian internet users are generally satisfied with the state's role in the development of internet and believe that the advancement of the information society should become a strategical priority for Slovenia
Slovenian internet users are generally satisfied with the state's role in the development of internet and believe that the advancement of the information society should become a strategical priority for Slovenia, shows a recent poll carried out by the Faculty of Social
Sciences in Ljubljana.
Compared to the previous survey dating back to 2004, the satisfaction with the state in reference to internet development increased from 3.3 to 3.5 on the scale of 1-to-5. Satisfaction was higher among fresh users, who as a rule have lower education.
The respondents appreciate most the contributions made by Slovenia's largest internet services provider Siol (3.8), Microsoft (3.8) and telco Telekom Slovenije (3.6). Likewise, they think highly of the role of the Ministry of Higher Education, Science and Technology (3.5), and the
Education and Sport Ministry (3.4).
On the negative side, the respondents were less satisfied with the contributions made by the
National Assembly and the government, which were awarded only 2.5 points.
The poll, which was carried out in September among 605 individuals aged from 12 to 65, also found that Slovenians found the construction of motorways as important as securing cheap internet access, setting up public internet access points and equipping schools with computers.
Also, 78% of the respondents think the development of the information society should become a strategic priority.
Some 13% of internet users visit web pages of the e-government system on a monthly basis.
The most frequently visited are the websites of local authorities (62%), followed by the web pages of the ministries (56%) and websites of the EU institutions (30%).
About one third of the respondents already filled in an official form or completed a part of an official proceeding over the internet, while 24% have already sent an email to the egovernment. Compared to 2004, these figures represent a substantial increase, said the pollsters.
Of all the services e-government offers, the online land registry and e-taxes are the most popular. However, only 36 of the respondents own qualified digital certificates, bank certificates being the most common.
More than 75% of internet users do not think they are informed well enough about the services the e-government offers, while 48% would like to have more online services within the system.
A quarter of the respondents said they were unhappy with the e-government, however the users which take advantage of the system are more satisfied, less critical and call for more eservices, the poll concludes.
Food Industry Blames Price Hikes on Rising Input Costs
Food companies have joined retailers in deflecting claims by the media and the consumer watchdog that they are the main cause of price hikes in the run-up to the adoption of the euro on 1 January
Food companies have joined retailers in deflecting claims by the media and the consumer watchdog that they are the main cause of price hikes in the run-up to the adoption of the euro on 1 January.
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The main reason for price rises is the fact that the food industry is very susceptible to seasonal and market trends, and the rising input costs, the Association of Food Industry, a body within the Chamber of Commerce and Industry (CCIS), said on Tuesday, 19 December.
The statement comes after the Consumer Association of Slovenia, which is carrying out the project Pricewatch, singled out retailers and food companies as the market players that are taking advantage of the changeover for unwarranted price hikes.
"The price changes that we are familiar with are not about abusing the introduction of the euro," Silvester Cotar, the secretary general of the food industry group, told the press.
He said the consumer watchdog was misleading the public. "We expect understanding from retailers and consumers that some prices will have to change," he said.
Ivanka Valjavec, the head of the association, added that the food industry was forced to accept the commitment to freeze prices for a few months, which is a burden considering the changing prices of inputs.
According to her, fodder wheat was up 37% between August and December, corn by 37% and concentrated frozen orange juice by 189%.
Ales Kuhar, an agrarian economist at the Faculty of Biotechnology, meanwhile noted that
Slovenia is the only EU newcomer to see food prices drop since it joined the bloc in 2004.
Slovenia To Boost Organic Food Production, Minister Says
Slovenia is pushing for an increase in organic food production in Slovenia and for a more market-oriented approach of producers
Slovenia is pushing for an increase in organic food production in Slovenia and for a more market-oriented approach of producers. It is therefore in favour of the proposal for a new EU council regulation on organic production, Agriculture Minister Marija Lukacic told the press on the sidelines of the council meeting in Brussels on Tuesday, 19 December.
"Organic food is currently grown on 1,880 farms in Slovenia, which represents 2.4% of all the farms," the minister explained, adding that such production covered about 5% of all land cultivated in Slovenia.
By 2015, Slovenia intends to substantially increase the extend of organic production, secure a more market-oriented approach, establish an effective system of control, boost supply and demand for locally produced food and step up and unify its promotion via appropriate labeling, Lukacic said.
The first day of the three-day meeting ended with EU ministers reaching general agreement on the proposal, which according to the minister introduces clearer rules on organic production.
Lukacic explained that Slovenia also supported the strategy for a sustainable use of pesticides, another issues on the agenda.
According to her, Slovenia has not yet defined areas where the use pesticides is prohibited, sensitive areas are however protected with local decrees. She added that this would have to be done in case a new directive required so.
Finally, Lukacic said that Slovenia was also in favour of the proposal aiming at simplifying the Common Agricultural Policy by uniting its existing 21 basic regulations.
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COMPANIES
Droga Kolinska Unveils Bold Plans for 2007
Food group Droga Kolinska said its business target for 2007 was to increase sales revenues by 11% to EUR 358m, while its strategic goal for the year was to become the regional market leader in the industry
Food group Droga Kolinska said on Monday, 18 December its business target for 2007 was to increase sales revenues by 11% to EUR 358m, while its strategic goal for the year was to become the regional market leader in the industry.
According to a press release Droga Kolinska posted on the Ljubljana Stock Exchange's website, the company's supervisory board endorsed the plans for 2007 last Friday, 22
December, when it also reviewed this year's operating results.
The press release said first estimates indicated the group would fully meet or even exceed the target figures for this year. The final operating results will be made public at the end of
February 2007.
The planned sales revenues in 2007 are set 11% above the estimated figure for this year.
According to the paper, the group's profit is expected to stand at EUR 12m this year and swell to EUR 15m next year.
The 2007 goal for Droga Kolinska is to become the leading provider of food products in the region with its own brands.
"We would like to top returns in the sector and by 2010 make all our flagship brands among the leading three in the market. The goal for the Russian market is to write a new success story with Argeta, just like we did with the brand Bebi," the company said in the press release referring to its pate and baby food brands.
Droga Kolinska said its strategic goal is to increase market shares on the existing markets and to expand to new markets.
The company plans to increase pate sales in Sweden, Russia, Austria, Germany and
Switzerland, introduce new lines of products to new markets of the EU and enter retail chains in Turkey.
Acroni General Manager: Good Times Here; More to Come
Slovenia's largest steel maker, Acroni of Jesenice, posted upbeat results this year, generating net sales revenues of EUR 363m and a net profit of EUR 13.2m
Slovenia's largest steel maker, Acroni of Jesenice, posted upbeat results this year, generating net sales revenues of EUR 363m and a net profit of EUR 13.2m, the company's boss told the press in Jesenice on Monday, 18 December.
According to general manager Vasilij Preseren, the company's sales revenues grew by 27% this year on a 10% increase in sales volumes.
He said the results were the best in the 15-year history of the company - which is part of the state-owned Slovenska industrija jekla (SIJ) steel group. He attributed them to extensive restructuring and investment in production.
Preseren said the company was enjoying the fruits of an economic upturn in Europe, which boded well for the future. According to him, Acroni is to launch a new investment cycle next year that is to last through 2012 and in which time EUR 160m is to be channelled for development.
The goal, said Preseren, is to make Acroni a modern producer of certain steel products. "At the moment we are third in Europe in terms of stainless steel - we hope to be first or second by the end of the investment cycle."
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Moreover, Preseren said net sales revenues were expected to balloon to EUR 440m in 2007 and then grow to EUR 600m in the years after that.
Production is not expected to increase volume-wise, instead the company is to increase its revenues by focusing on products with high value added, including specialty steels, said
Preseren.
Apart from improving production, the company is also investing in making its operations more environmentally-friendly. While EUR 20m has been spent on this purpose in recent years, an additional EUR 20m is to be invested through 2010, when the company has to meet
European standards.
Touching on the privatisation of SIJ, Preseren said that a change in ownership should not alter the company's plans for the future. He added that the time for privatisation was "optimal" as the good results would enable the state to make conditions to potential buyers on jobs and investment.
Motorway Company Takes Out EUR 300M Loan
It will be used to fund the construction of motorway sections that are planned in the national motorway programme
The national motorway company DARS signed an agreement with the European Investment
Bank on Monday, 18 December, securing a EUR 300m loan to fund the construction of several motorway sections.
According to the press release posted on the website of the Ljubljana Stock Exchange on
Monday, 18 December, the loan is to be paid back over 25 years.
It will be used to fund the construction of motorway sections that are planned in the national motorway programme.
The loan may be drawn in various currencies, at an interest rate that is fixed for each credit line separately.
The loan contract will become effective after the relevant guarantee agreement is ratified by the National Assembly, DARS said in the press release.
Velenje Coal Mine to Post Profit Instead of Loss
The Premogovnik Velenje coal mine expects to post SIT 100m (EUR 417,000) in profit at the end of the year
The Premogovnik Velenje coal mine expects to post SIT 100m (EUR 417,000) in profit at the end of the year, despite projecting a loss of SIT 1.4bn (EUR 5.84m) for 2006, the company told the press in Velenje on Monday, 18 December.
The company's general manager Evgen Dervaric attributes the profit to record coal sales. The mine plans to excavate a total of 3.9 million tonnes of coal this year.
Dervaric added that the company also saved SIT 200m (EUR 834,500) through cost-cutting measures this year.
According to him, the planned construction of a new block at the nearby Sostanj thermal power plant made the company restate its closure plans.
While the original plan called for the mine's closure in 2025, the planned block will extend the facility's lifespan to 2040, Dervaric added.
According to the 2006-2015 development plan, up to 4 million tonnes of coal will be dug out every year until 2014. The production will then slowly be phased out.
The mine's development plan also envisages Slovenia's largest solar power plant. The construction of the 1 MW facility is to begin in late 2007.
Dervaric expects the price of coal to amount to EUR 2.25 per gigajoule in 2011. The current price stands at EUR 2.42 per giga-joule.
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The energy value of the mine's coal production in 2006 was estimated by Dervaric at 44,200 terajoules.
The company projects a loss of SIT 700m (EUR 2.92m) in 2007.
Furniture Retailer Plans Profit of EUR 13m in 2007
The group also projects revenues of SIT 40.1bn (EUR 167.33m) an increase of 23% over
2006
Furniture retailer Lesnina plans a profit of SIT 3.1bn (EUR 13m) in 2007, up 17% over what it expects in 2006. The group also projects revenues of SIT 40.1bn (EUR 167.33m) an increase of 23% over 2006, the company said on Monday, 18 December.
The reason fort the group's anticipated growth lies in the opening of a new retail centre in the
Croatian city of Rijeka.
Without the centre, which is expected to open on Wednesday, 20 December, the group's revenues would be projected to rise by 15%, the company added.
The group also plans to increase the number of its employees to 780, Lesnina supervisors heard at the meeting.
Railways Operator to End the Year EUR 6.26m in the Red
Railways operator Slovenske zeleznice plans to end 2006 with pre-tax loses amounting to just under SIT 1.5bn (EUR 6.26m)
Railways operator Slovenske zeleznice plans to end 2006 with pre-tax loses amounting to just under SIT 1.5bn (EUR 6.26m), Branko Omerzu, deputy general manager of the state-owned company, told the press in Ljubljana on Monday, 18 December.
The loss does not include business results of the company's subsidiaries, Omerzu added.
The company's supervisory board discussed the results on 15 December. The supervisors also went through the candidates for the post of general manager but chose none of the 10 applicants.
Slovenske zeleznice general manager Joze Jurkovic resigned on 11 October for personal reasons.
Najdi.si Still the Most Popular Slovenian Website
A survey has shown that search engine Najdi.si is still the most frequently visited Slovenian website, with 710,106 hits between 2 and 29 October 2006
A survey has shown that search engine Najdi.si is still the most frequently visited Slovenian website, with 710,106 hits between 2 and 29 October 2006.
Najdi.si is followed by 24ur.com, a news portal, Siol.net, the homepage of Slovenia's leading
Internet service provider, Bolha.com, an auction site, and Avto.net, a car sale portal, the
Slovenian Advertising Chamber said in a press release on Monday, 18 December.
The survey included 83 websites, with a total of 1.4 million hits, 28% of which came from outside of Slovenia.
In comparison to a survey in the spring of 2006, the number of internet hits increased by 25%, while the number of internet users increased by 9%.
Among regular internet users, more than a half are men (54%), while the average age is 34 years.
The survey was conducted by technical measuring and corrected on the basis of a telephone poll by the Aragon research and planning company.
Managers Gain Control of Viator&Vektor
Vektor and Petin, two companies affiliated with the chairman of logistics group Viator &
Vektor, said they have successfully completed a takeover of the group
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Vektor and Petin, two companies affiliated with the chairman of logistics group Viator &
Vektor, said they have successfully completed a takeover of the group. The two companies acquired 45.38% in Viator & Vektor in the offer running through 19 December to raise their combined stake to 65.78%.
Publishing the results of their takeover bid in the daily Finance on Wednesday, 20 December,
Vektor and Petin said 167 shareholders had accepted their offer of SIT 35,000 (EUR 146.05) per share - valuing the whole company at about SIT 6.7bn (EUR 28.2m) - and sold it 86,075 shares.
The two bidders therefore increased their stakes from 38,688 to 124,763 shares, which is nearly two-thirds of the company. Both companies hold a half of that stake.
Petin is fully owned by Viator & Vektor chairman Zdenko Pavcek, while Vektor is owned by around 50 employees of the logistics group. The bid was the latest in a series of management buyouts in the ranks of Slovenia's largest companies.
According to Vektor and Petin, the main motives behind the move are increasing the influence on the company's operations and development goals, and the belief that an MBO could have a positive effect on the growth of the company.
Before the latest acquisitions, the biggest shareholders of Viator & Vektor aside from Petin included asset management firms Infond Holding (24.8%), Zlata Moneta 2 (19.6%) and
Proholding (13%).
The logistics group posted sales of SIT 44.6bn (EUR 186.1m) and an operating profit of SIT
1bn (EUR 4.2m) in 2005.
Retailers Mercator, Plodine Set Up Joint Venture
Slovenian top retailer Mercator and Croatian supermarket chain Plodine established a joint venture in Zagreb
Slovenian top retailer Mercator and Croatian supermarket chain Plodine established a joint venture in Zagreb on Wednesday, 20 December. The Mercator-Plodine company will be headed by Alan Krickovic, the head of Mercator's Croatian subsidiary Mercator-Hrvaska and
Djozi Heberling, management board member of Plodine.
The aim of the newly-created company is to solidify the market position of Mercator and
Plodine, and to ensure reliable and stable business conditions for its suppliers.
Mercator CEO Ziga Debeljak and Plodine chief exec Mile Curkovic were also present at the signing of the deal.
Plodine was established in 1993 in the Croatian city of Rijeka.
Air Traffic Control Gets EU Certificate Before Deadline
The document guarantees that the controller's operations are in accordance with the relevant
European Commission regulation
Slovenian air traffic controller Kontrola zracnega prometa Slovenije obtained the Single
European Sky certificate before the 2006 deadline. The document guarantees that the controller's operations are in accordance with the relevant European Commission regulation, the company said in its press release on Wednesday, 20 December.
By obtaining the certificate, the company became a competitive provider of air traffic navigation services because it can offer its services in the whole of the EU.
According to the company, it has met requirements in the area of organisation and business operations, human resources, safety, protection of infrastructure, data and people, and quality.
Telekom Acquires Republic of Srpska ISP Blic.net
Telekom Slovenije acquired the Republic of Srpska internet service provider Blic.net from the telecommunications company Sinfonika for EUR 390,000
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Telekom Slovenije on Wednesday, 20 December acquired the Republic of Srpska internet service provider Blic.net from the telecommunications company Sinfonika for EUR 390,000.
The telco will supply Blic.net with an additional EUR 1m in fresh capital, the company said in a press release.
The Banja Luka-based Blic.net currently has 21,000 subscribers, but the number is planned to treble over the coming two years. It posted revenues of EUR 441,000 for the first eight months of 2006 and a net profit of EUR 24,300.
Telekom Slovenije said the acquisition is a great opportunity given the potential for growth.
The long-term objective is to make Blic.net one of the biggest providers of advanced telecommunications services in Bosnia-Herzegovina.
Telekom's portfolio already includes On.net, the second-largest ISP in Macedonia, and Ipko
Net, the largest provider in Kosovo.
It is also the owner of the largest ISP and mobile operator in Slovenia, Siol and Mobitel.
Adria Carries One Millionth Passenger
Last year Adria boasted some 944,000 passengers on about 20,000 scheduled and charter flights
Mojca Malezic became on Wednesday, 20 December the one millionth passenger to fly with
Adria Airways this year, marking the first time in 15 years that the Slovenian airline carried over a million passengers.
In the years before 1991 Adria typically carried some 1.5 million passengers annually, but the figure plummeted to 300,000 in 1992 and rose only gradually.
Last year Adria boasted some 944,000 passengers on about 20,000 scheduled and charter flights.
"The millionth passenger makes us proud, as we have achieved the goal that we have been seeking for years. This makes us one of the leading airlines in the region," Adria chairman
Tadej Tufek said.
The lucky passenger, who was checking in for a flight to Moscow, got two tickets for any destination served by Adria.
Adria Airways currently operates 180 weekly flights to 19 destinations.
Petrol Expects Higher Sales, Lower Profit in 2007
Energy company Petrol projects net sales of EUR 1.95bn for 2007
Energy company Petrol projects net sales of EUR 1.95bn for 2007, up 2% over the estimate for this year. Operating profit is expected to drop by 6% to EUR 42.7m and net profit by 21% to EUR 36.1m, the company said on Wednesday, 20 December.
Profit will be lower due to extraordinary income this year such as SIT 4.2m that it got back from the Tax Administration based on a ruling by the Higher Court of Ljubljana, Petrol said in a press release after the plan was confirmed by the supervisory board.
The adoption of the euro is expected to shave some EUR 4.2m off the bottom line, mainly due to a shortfall from commission that the company charges for payment in foreign currency.
Petrol is projected to sell 1.96 million tonnes of oil derivatives, up 1% over this year.
Merchandise sales are meanwhile expected to bring in EUR 228m, 9% more than this year.
The projections are based on current profit margins for petrol under the governmentadministered petrol pricing scheme.
In petrol retail, the company plans to focus on maintaining its position of market leader in
Slovenia and pursue the expansion drive in Southeast Europe.
In energy, Petrol will endeavour to strengthen its market position at home and in Southeastern
Europe.
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Luka Koper Expects Pre-Tax Profit of EUR 22.1m in 2007
The volume of cargo handling is to top 13.9 million tonnes
Seaport operator Luka Koper expects a pre-tax profit of SIT 5.3bn (EUR 22.1m) in 2007 on sales that are projected to increase 3% year-on-year to SIT 22.9bn (EUR 95.6m). The volume of cargo handling is to top 13.9 million tonnes, the company said on Thursday, 21 December.
The company expects to build on this year's results by increasing the volumes of containers, vehicles and general cargo. Particular attention shall be paid to the optimal exploitation of cargo-handling and warehousing capacities, the press release reads.
Investments are to top SIT 19bn (EUR 79.3m), the most important projects being the construction of a new car park with a capacity of 12,000 cars, additional equipment for the handling of containers and the construction of new premises for bulk cargo warehousing, and a motorway connection to the new entrance of the port.
The plan was endorsed by the company's supervisory board on Wednesday, 20 December.
Following the release of the plans for 2007, Luka Koper added 1.36% to SIT 11,464 (EUR
47.84) in early trading on the Ljubljana Stock Exchange.
Gorenje CEO Happy with Approved Capital Increase
Franjo Bobinac, the chief executive of home appliance maker Gorenje, is happy with the 15% supply of fresh capital that the shareholders approved on 12 December
Franjo Bobinac, the chief executive of home appliance maker Gorenje, is happy with the 15% supply of fresh capital that the shareholders approved on 12 December even though the management proposed a 50% capital increase. According to the bleakest scenario, we would not have gotten anything, he told the business daily Finance on Thursday, 21 December.
The counter-proposal was made at the shareholders' meeting in the eleventh hour by the staterun KAD. This puts Gorenje capital increase at a maximum of SIT 1.83bn (EUR 7.63m), achieved by issuing 1,830,000 ordinary shares on which the existing shareholders would have preemptive right.
According to Bobinac, it would be the worst for development if the first capital supply did not succeed: the company would have to work on reducing indebtedness, which would hamper development; if a company in such a mature industry does not grow, it is immediately out of the loop.
Even though the management did not succeed with its 50% proposal, if the first round is successful it might ask the shareholders for a second round of fresh capital next year.
Although existing shareholders will have pre-emptive right, Bobinac expects that KAD, which owns 25.2%, will not take part. Indeed, it should use the opportunity to make good on the state's promise that it would withdraw from non-strategic companies.
The state loses nothing if it does not take part, Bobinac is convinced. The company would continue to grow following the capital increase and even though the state's stake would be reduced by several percentage points, its investment would be worth more.
In any case, the state's non-participation would give a clear signal to the European Bank for
Reconstruction and Development (EBRD), which said it would take part in the capital increase only if the state does not, Bobinac said. The EBRD also insists that the Gorenje management buy the fresh shares.
According to him, some 100 leading Gorenje managers would be included in the first round, acquiring some 7% of the share capital. Other employees would take part in the second round; they could buy some 10% of the capital stock.
If the supply of fresh capital is successful in the first or second quarters of 2007, Gorenje could carry out a takeover in the first half of the year, he said.
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TRD Metalurgija Sold to German-Slovenian Joint Venture
German-Slovenian joint venture W&P Profil Solarvalue Holding acquired a 90.78% stake in
TDR Metalurgija, the Ruse-based maker of ferro-alloys and calcium carbide
German-Slovenian joint venture W&P Profil Solarvalue Holding on Wednesday, 20
December acquired a 90.78% stake in TDR Metalurgija, the Ruse-based maker of ferro-alloys and calcium carbide, for the symbolic sum of SIT 55m (EUR 230,000).
The shares were sold by power utility HSE, railway company Slovenske zeleznice and the state-owned fund KAD.
The new owner submitted bank guarantees to the tune of EUR 5.9m to insure the commitments to clean up and technologically upgrade production, a press release from HSE and W&P Profil Solarvalue on Thursday, 21 December reads.
W&P Profil Solarvalue is expected to launch the production of new materials immediately, in particular solar silicon.
HSE and W&P Profil Solarvalue also signed a contract on the supply of electricity at
"acceptable market prices" for the next five years.
The German-Slovenian joint venture was the only bidder in the 10 February call for bids, but negotiations lasted for months until the contract on power supply was agreed.
TDR Metalurgija had 329 employees at the end of last year and posted sales of EUR 32.4m in
2005. The company is the last remnant of the once mighty industrial conglomerate Tovarna dusika Ruse, which employed thousands of people at its apex in the 80s.
Hit Opens New Hotel Wing in Nova Gorica
According to company officials, the aim of the investment is to solidify Perla's position as a leading European gaming centre
Slovenia's leading gaming group Hit opened on Thursday, 21 December a new EUR 18m wing of its hotel complex at the Perla entertainment centre in Nova Gorica.
According to company officials, the aim of the investment is to solidify Perla's position as a leading European gaming centre.
Hit is pursuing its strategy of investments into tourism-related services which accompany the gaming industry in a bid to extend the stay of its guests, Hit chairman Niko Trost said at the opening of the wing.
The entertainment centre's hotel, gaming and wellness facilities stretch across more than
16,500 square metres and the new hotel wing almost doubles Perla's accommodation capacity by providing an additional 143 rooms and 8 apartments, Perla director Severin Strancar said.
Among the new acquisitions are two conference halls which can sit 335 people and a restaurant with 40 seats.
The number of parking spaces has also been increased and 20 new people have been employed, raising the number of employees to 600.
"This is a gift for Nova Gorica," said the mayor Mirko Brulc of the western Slovenian town.
He added that the new hotel facilities will enable the development of conference tourism in the area.
Also, the newly-acquired accommodation capacities will allow him to "press" the government to stage some EU events in Nova Gorica as Slovenia holds the presidency in the first half of
2008.
Meanwhile, Trost said that Hit is now planning to start the renovation of the old part of Perla built 13 years ago, and launch the renovation of Park, its second entertainment centre in Nova
Gorica.
Trost also said the group was planning major investments in the infrastructure and tourism facilities in the Alpine resorts of Kranjska Gora and Planica.
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According to Trost, Hit generated gross revenues of EUR 213m, which is 8.5% above plans, while the profit is to stand at nearly EUR 19m in 2006.
Istrabenz Group Plans EUR 26.3m Profit in 2007
Food, energy and tourism holding Istrabenz plans to make a profit of EUR 26.3m in 2007 on sales revenues of EUR 635m, the group said in a statement published on the website of the
Ljubljana Stock Exchange
Food, energy and tourism holding Istrabenz plans to make a profit of EUR 26.3m in 2007 on sales revenues of EUR 635m, the group said on Friday, 22 December in a statement published on the website of the Ljubljana Stock Exchange.
The projected revenues for next year are EUR 104m below this year's anticipated EUR 739m because of the impact the recent sale of half of energy arm Istrabenz energetski sistemi to home appliance group Gorenje will have on consolidated results, the group said.
Istrabenz's business plan for the coming year was also discussed and confirmed by its supervisory board on Friday, 22 December. The plan sees the company's portfolio amounting to EUR 1.1bn by the end of 2007.
Regional Daily Gets New General Manager
The supervisory board of regional daily Primorske novice appointed Suzana Zornada Vrabec the new general manager
The supervisory board of regional daily Primorske novice appointed on Friday, 22 December
Suzana Zornada Vrabec the new general manager. The former spokesperson for port operator
Luka Koper replaced Sergej Skrlj, who resigned on Thursday, 21 December after less than six months in office.
According to media information, Skrlj brought losses instead of profits during his stint as general manager. He also failed to bring new projects and funds after being appointed in June.
Zornada Vrabec has until 10 January to draft and present a business plan for 2007, the supervisors also said.
This is not the only change to have hit the daily recently, as Skrlj dismissed editor-in-chief
Tino Mamic in late November. The no-cause dismissal had left Mamic's assistant Vesna
Humar to take over as acting editor-in chief.
Service Stations to Suspend Operations Due to Euro Changeover
Around-the-clock service stations across Slovenia will close for a while in the night to New
Year's Day in order to customize their software and operations for the launch of the euro as the official currency
Around-the-clock service stations across Slovenia will close for a while in the night to New
Year's Day in order to customize their software and operations for the launch of the euro as the official currency.
Energy company Petrol plans to close its service stations for up to 15 minutes shortly before midnight on New Year's Eve, while OMV Slovenija says its stations will be closed between
11 PM on 31 December and 1 AM on 1 January 2007.
All 48 Petrol around-the-clock service stations will be open in the night to New Year's. Most of these are situated along motorways and in large cities across the country.
Debit and credit card payments will not be possible while the system is out, i.e. between 11
PM on 31 December and 1 AM on 1 January. Nevertheless, the holders of Magna cards, issued by Petrol, will be able to make payments problem-free, Petrol officials said.
OMV Slovenija will close its 18 round-the-clock service stations for the time debit and credit card payment terminals are out of operation (between 11 PM on 31 December and 1 AM on 1
January). During this time neither cash nor credit or debit card payments will be possible.
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SLOVENIA IN BRIEF
Drnovsek Wins Sarajevo Peace Centre Award
The Sarajevo-based International Centre for Peace has honoured President Janez Drnovsek with an award for his contribution to humanism, promotion of human rights and freedom in
Bosnia-Herzegovina, Europe and the world.
Slovenia and Bosnia-Herzegovina Sign Defence Agreement
Slovenian Defence Minister Karl Erjavec and his counterpart from Bosnia-Herzegovina
Nikola Radovanovic signed on Monday, 18 December an agreement on the cooperation in the area of defence. The meeting in Otocec was also an opportunity for the exchange of opinions on bilateral cooperation in defence after Bosnia-Herzegovina enters NATO's Partnership for
Peace programme.
Marjeta Cotman Appointed New Labour Minister
Marjeta Cotman was appointed the new minister of labour, the family and social affairs in a
46:26 vote in parliament on Monday, 18 December. After the confirmation Cotman was sworn in as the second woman in the cabinet of Prime Minister Janez Jansa.
Italy, Slovenia Expand Free Movement Alongside Border
Slovenia and Italy agreed in Trieste late on Monday, 18 December to ease cross-border movement in anticipation of Slovenia's entry to the Schengen no-border zone. The countries signed a protocol on mountaineering and another one to facilitate traffic at border crossings, a
Trieste-based paper reports on Tuesday, 19 December.
Deal Signed on 135 Patria 8x8 Armoured Personnel Carriers
The Defence Ministry signed on Tuesday, 19 December a contract on the purchase of 135
Patria 8x8 armoured personnel carriers (APCs). The SIT 66.61bn (EUR 278m) deal was signed by the ministry, Rotis, the company representing Finnish defence contractor Patria in
Slovenia, and Patria.
Parliament Repasses Asbestos Act Amid Patients' Protests
Parliament repassed on Tuesday, 19 December the amendments to the asbestos act which were vetoed by the upper chamber on 29 November. The vote, split along party lines, was accompanied by protests, staged by the association of asbestos patients in front of parliament.
Zdenka Cebasek Travnik Appointed Obudsman
Parliament appointed Zdenka Cebasek Travnik new human rights ombudsman on Wednesday,
20 December. The 51-year old psychiatrist was backed by 64 deputies, while no one voted against.
National Geographic Prints First Full Article on Slovenia
The international edition of the National Geographic magazine published in its January issue a story dedicated entirely to Slovenia for the first time ever. The story focuses on the rich archaeological heritage in the Ljubljanica river that winds through the capital of Ljubljana.
The article, published in the international and Slovenian editions of the magazine, features
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archaeologist Andrej Gaspari, a diver with a desire to keep the artefacts that span over 5 millennia in Slovenia.
German and Slovenian Defence Ministers Discuss EU Presidency
Slovenian Defence Minister Karl Erjavec said after meeting visiting German counterpart
Franz Josef Jung on Thursday, 21 December that the priority tasks of Germany's upcoming six month stint as EU president in the field of defence include the drawing up of an inventory of military capabilities and missions.
Bosnia-Herzegovina and Slovenia Agree Closer Police Ties
Slovenia and Bosnia-Herzegovina signed a police cooperation agreement in Ljubljana on
Friday, 22 December in what Interior Minister Dragutin Mate said provided an important legal framework for combating international crime.
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