Slovenska Posta’s transformation signed into law

Slovak President Rudolf Schuster signed the draft law on the transformation of state-run postal service company Slovenska Posta on Friday, his spokesman Jan Fule informed SITA. In line with the above law, Slovenska Posta will be transformed into a joint-stock company as of July 1, 2004. Its headquarters will remain in Banska Bystrica. The transformation will also include internal restructuring, within which the number of management levels will be reduced. The so-called regional postal centers will replace current post directorates and post centers, to directly manage postal services. The law should create equal conditions for the operation of the newly established Slovenska Posta and other private trade companies providing similar services. The Transport Ministry, representing the government, will hold 100 percent in the new joint-stock company. Deputies passed an amending proposal, ensuring that priority investment assets will only be held by the state or the transformed postal company. The Transport Ministry will define what will be considered priority investment assets. It will be impossible to put up priority assets as collateral or use it to settle the postal company’s obligations. Simultaneously, the draft bill bans its sale, donation or transfer into ownership of other corporate entities or private individuals. These assets cannot be a subject of execution proceedings and cannot be included in bankruptcy assets. The president also signed the draft revision to the law on the terms of a transfer of state assets to other persons. At their latest session, Slovak parliament deputies dropped from the law on large-scale privatization the provision, which enabled the use of privatization proceeds for investment stimuli. The above provision contradicted the program statement by the Slovak cabinet.