The Slovak markets remained quiet, as the
local eco calendar is still very light. The
Koruna moved in a very narrow range of
EUR/SKK 35.48 – 35.53. We expect the
same trading pattern today. The calendar is
empty again and the market will wait for the
Slovak GDP structure and the ECB rate
decision on Thursday.
The Parliament starts the discussion on the
state budget bill for 2007 and could vote on
Friday. The budget is key for the country’s
aspiration to join the Euro zone in 2009.
The government targets a public deficit of
2.94% of GDP.
The revenue side might surprise on the
positive side, but there are still some risks
on the expenditure side in the healthcare
sector. These expenditures are covered only
for the first 4 months of the year and then
the ministry will have to find internal
reserves in their own coffers. And this could
be a problem. Today, trading should be quiet
and the exchange rate should continue to
hover around the level of EUR/SKK 35.50.
ČSOB - Investment Research