Bratislava Stock Exchange (BCPB)

Based on the information provided by the Chamber of BCPB in respect of the project on establishing a financial derivatives market, trading with derivatives should start on 1 September 1998.

A market with derivatives should contribute to the revitalisation of the Slovak financial market.

The Chamber of BCPB approved the proposal of BCPB to amend the Act on Securities Exchange.

Rating of the state bonds

Moody's Investor Service, the rating agency, reviewed ratings of the state bonds of different Central European countries in June 1998.

State bonds of four Central European Countries denominated in national currencies were rated as follows.

The Czech Republic            A1
Hungary                       A1
Poland                        A2
Slovakia                    Baa2

According to the Agency, Slovakia's state bonds were given the lowest rating despite Slovakia's significant economic growth and quite low inflation rate due to the fear of current account deficit and a need for restructuring of the banking sector.

Minimum wage

The Ministry of Labour, Social and Family Affairs proposes increasing the minimum wage from current Sk 3,000 to Sk 3,600.

Should the proposal be approved, both minimum and maximum bases for social security computation will increase.

Restructuring of Slovak banks

A discussion concerning a proposal on restructuring selected Slovak banks was postponed by a decision of the government at its session again.

The original deadline for submitting the project, i.e. March 1998, was postponed until 30 September 1998.

This decision was made due to differences between the Ministry of Finance and NBS, particularly in respect of state participation in the restructuring process.

The information in this newsletter is correct to the best of our knowledge and belief at the time of going to press. Specific advice should be sought, however, before investment and other decisions are made.

For further information contact Mr Frank Walsh on +421 7 5340 545 Email directly on Click Contact Link