The Slovak koruna gained ground during the last two days and strengthened against the euro. The SKK was supported by the calming political situation as the Parliament approved early elections for June 17. Regional sentiment was another positive factor for the SKK. However, further gains should be limited due to questions about further economic policy beyond the horizon of elections and questions around privatization. Most of the privatization deals should be quit till the elections. Nevertheless PM Dzurinda yesterday said that a decision had yet to be taken on whether to complete the sale of local cargo company ZSSK Cargo (expected revenues SKK 17 bn). Today’s figures should be slightly positive for the koruna but we expect only limited gains.
ČSOB - Investment Research