Slovakia’s economy grew by a record 6.7% in QII 2006. Domestic consumption also continues to grow fast, on the back of higher disposable incomes. Retail sales increased by 8.8% y/y in July, compared to just 2.5% y/y in the euro-zone.
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The credit register, established in October 2004 by Slovak Banking Credit Bureau (a joint operation of three of the country’s largest banks Slovenska Sporitelna, Tatra banka, VUB) will soon conclude its second year. And it has proven itself; initially only registering data from its three founder banks, in 2005 and 2006 virtually all of Slovakia’s banking institutions have joined to exchange information on clients. Borrowers who have been late on payments are consequently starting to have problems in obtaining further loans.
A similar register will be starting in 2007, this time covering information on clients of non-banking institutions (incl. leasing companies, loan companies, utility suppliers, telecoms).
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Bratislava’s M.R.Stefanik Airport will remain in state hands; in spite of winning the privatization, TwoOne consortium will not be taking over afterall. TwoOne, made up of Vienna Airport, Raiffeisen Bank and Slovak investment group Penta, has, in February 2006, signed an agreement on buying a 66% stake, pending approval of Slovakia’s Anti-monopoly Office. The Office’s decision came in negative in view of potential disadvantages of Bratislava airport being sold to its main competitor (Vienna airport).
The new Slovak government, in line with its policy of not privatizing remaining state assets, has consequently cancelled the privatization rather than inviting the tender’s second bidder. Although significant investments into extension of the fast growing M.R.Stefanik Airport are planned, it is expected funds will be available in spite of the U-turn on privatization and without an outside investor.
Bratislava airport has seen unprecedented growth in the last 3 years, with passenger numbers nearly doubling y/y. In the first 7 months of this year 1.5 million passengers have used the airport. The annual figure is expected to be over 2 million – five times more than experts predicted five years ago.
The terminal, projected accordingly for a capacity of 300,000 passengers a year, is no longer suitable for the fast expanding airport. A new departure terminal is awaiting planning approval, construction could start in early/mid 2007. However, it is already known that the new terminal (cost of 100 mil euro) will only provide a solution until 2010, when its capacity once again falls short of the forecasted 4.5-5 million passengers. Future plans count with a new terminal for 10 million passengers.
This summer a new arrival hall was opened, doubling arrivals capacity and setting up passenger processing facilities in line with the Schengen Agreement. Late this year construction will start on a new parking house (capacity of 1,200 cars).
With Bratislava’s ever increasing popularity among foreign visitors, even current excellent forecasts for the airport may, in a few years time, prove to have been too cautious. (This year Bratislava has again seen an 11% growth in visitor numbers – far above most European cities, including Vienna with its 2% growth y/y.)
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