Slovakia will receive 110 million euro in 2007- 13 from EU’s Regional Development Fund, for revitalization of its communist era housing estates. The government estimates the funds to allow rehabilitation of 50,000 panel block flats.
At present an estimated 650,000 units need revitalization. Rehabilitation of communist housing blocks will require some 11 billion euro over the next 30 years. Currently Slovakia manages to repair just 8,000 units a year.
The rehabilitation funds will be provided to municipalities and are allocated for structural and insulation problems, repairs of communal parts of buildings, technical and electrical installations, as well as, in some cases, creation of community centres, playgrounds, etc, in order to prevent social degeneration of settlements.
The largest share of the funds will go to the most needy communities with low purchasing power and high unemployment. Bratislava is excluded from any EU funding due to high GDP, which in this particular case is unfortunate as the capital is home to most of Slovakia’s communist-era panel blocks.
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Slovakia’s GDP grew by 6.3% y/y in the first quarter of 2006. The foreign trade deficit has been further decreased and the foreign trade balance has, according to NBS (National Bank of Slovakia) analysts, a positive outlook.
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After two rate hikes in February and May, National Bank of Slovakia (NBS) increased the base rate by another 50bp in late July. The hike has been expected by analysts and is a measure to curb inflation and prop up the slovak koruna that has been weakening since March under influence of the volatile Central European currencies (particularly the polish zloty) as well as immediately before and after Slovak elections.
Slovakia has to stay within ERM II (EU’s tight exchange rate mechanism) for two years before being allowed to join the euro, therefore NBS is expected to keep stepping in to defend the koruna when necessary (to strenghten/weaken it).
The base rate currently stands at 4.5% p.a.
Article supplied by: www.slovakiainvestmentproperty.com