| July '06 Newsletter |
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| Sunday, 30 July 2006 | |
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The Slovak Economy – Current NewsFico, don’t make us fear the future already!‚ joked the strapline in a popular publication next to a picture of Robert Fico after the recent elections. As the polls suggested, his social democrat SMER party won the elections in June on what many commentators called a populist and backward-looking campaign. Nevertheless, without a clear majority SMER has been forced to go looking for friends, and has formed a coalition with two right wing parties, one of those being the party of the former government. There is a general recognition by observers that despite Fico’s noises during the election campaign around anti-privatisation and higher state funding, the realities of maintaining the strong economic standing of Slovakia will require much of the expertise from the outgoing government and explains his urgency in getting them on board. And unlike in the Czech Republic, the communists are not in parliament and therefore cannot create a left wing Government. What does this mean for the property investor going forward? The key issues that world markets and outside investors have been concerned about are the impact SMER would have on euro entry, pro-investment subsidies and the flat rate tax. The coalition with two other right wing parties means there are significant limits to Fico‚s rolling back of these major reforms, and ideologically the issues SMER gravitate toward concern the social agenda - insurance, pensions, and personal, food and healthcare taxation.  The 2009 EMU entry target date should remain in place given the potentially significent repercussions that any delay might cause. The most challenging task ahead will be managing inflation given the rising demand and wage pressures in the current strong growth environment surrounding the expanding automobile sector. Upcoming Deal - Register you Interest For the last few months we have been meeting with developers and contacts in Bratislava in search of the next best development coming to market for our investors. A few weeks ago we narrowed our search down and have been negotiating terms for our investors on an extremely well priced development which ticks all our investment criteria boxes and more.  Key Points of this investment opportunity:
River Park - Latest News We still await the details and release of the much anticipated River Park development. As many of you probably know, the architect has been changed and so therefore has the design but as you can see from the image below - River Park truly will become a promenant landmark on the Danube.  Slovak Investments will have first option on units in this development and we will give you more details as we get them closer to September. Appear on Channel 4's A Place in the Sun - Home or Away We have been contacted by Channel4's top property programme 'A Place In The Sun; Home or Away' helps people to re-locate, establish a base, or find their perfect holiday home either in the UK or abroad. The programme is currently looking for people interested in purchasing property in and around Bratislava in Slovakia – might this be you? If you’re chosen you’ll be provided with a team of top property experts who will attempt to find you your perfect property. Between them they will be able to offer advice and share their knowledge of each of the properties in each of the locations. The only catch is that you need to be torn between purchasing a property in Bratislava or the UK. If you are interested please contact Natalie Long on 0161 235 6578 or email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it for further information. Deadline for applications is Friday 28th July 2006. Hopefully this newsletter has been informative and we look forward to speaking to investors in the coming weeks about our new deal and to answer any questions you might have regarding property investment in Slovakia. |
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