Slovakia - Factors To Watch on June 27

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GOVERNMENT MEETING

The government will hold a regular weekly meeting.

PARLIAMENT SESSION

The parliament continues its monthly session. Deputies will debate amendments to labour code, 0700 GMT.

ECB MEMO CASTS DOUBT ON SLOVAK EURO ENTRY

European Central Bank staff have cast doubt on Slovakia's plan to adopt the euro in 2009, saying a fall in its inflation rate to a record low may be short-lived, an ECB document obtained by Reuters shows.

[ID:nL26882840] [RTRS-EUR-CEN-PLCY-SK]

[ID:nL26507208]

SLOVAKIA KEEPS KEY RATE JUST ABOVE ECB BENCHMARK

The Slovak central bank left key interest rates unchanged at its monthly monetary policy meeting on Tuesday, maintaining a quarter percentage point premium over the euro zone benchmark rate.

[ID:nL26328062] [RTRS-CEN-INT-PLCY-SK]

CBANKER SAYS NO PROPOSAL FOR RATE CHANGE

The Slovak central bank (NBS) board did not vote on an interest rate change at its policy meeting on Tuesday, and considers the current monetary settings as appropriate, NBS Governor Ivan Sramko said.

[ID:nPRG000398] [RTRS-CEN-FRX-INT-PLCY-SK]

CBANK DRAINS SKK 140 BLN IN REPO TENDER

The Slovak central bank (NBS) accepted all bids in a regular two-week repo tender on Tuesday, draining 139.829 billion crowns ($5.56 billion) from the market.

[ID:nL26883834] [RTRS-CEN-INT-MMT-SK]

JAN-APRIL CURRENT ACCOUNT DEFICIT SKK 2.4 BLN

Slovakia's current account showed a preliminary deficit of 2.4 billion crowns ($95.12 million) in the first four months of the year, after a gap of 36.7 billion a year ago, the central bank (NBS) said on Tuesday.

[ID:nPRG000399] [RTRS-MMT-CEN-MCE-SK]

END-MARCH FOREIGN DEBT RISES TO $35.2 BLN

Slovakia's gross foreign debt rose to $35.230 billion at the end of March, from $32.177 billion at the end of February, the central bank (NBS) said on Tuesday.

[ID:nL26688149] [RTRS-MMT-CEN-MCE-SK]

CROWN PARES LOSSES, IGNORES RATE DECISION

The Slovak crown recovered on Tuesday from losses caused by an ECB memo that cast doubt on whether Slovakia will meet inflation goals to qualify for euro adoption in 2009, dealers said.

[ID:nL26319821] [RTRS-MMT-FRX-SK]

PRESS DIGEST

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HEALTH INSURERS

The justice ministry has warned Healthcare Minister Ivan Valentovic that his plan to ban private health insurance companies from making profit may be unconstitutional.

Sme, page 1

ENVIRONMENTAL CODE

Parliament approved amendments to Slovakia's environmental code, which reduces the level of nature protection. Opposition criticised ruling coalition for pushing through interests of entrepreneurs.

Sme, page 4

LOW TAX

Slovakia has the third lowest taxes in the European Union, Eurostat said. Slovakia's tax income was 29.3 percent of GDP in 2005. Romania showed 28 percent and Lithuania had 28.9 percent.

Hospodarske Noviny, page 4

OPPOSITION FINE

Two opposition deputies, members of ex-Prime Minister Mikulas Dzurinda's SDKU party, face a fine of 5000 crowns ($198.2) for criticising Prime Minister Robert Fico and his government in parliament.

Pravda, page 4

EURO MORTGAGES

Slovaks show rising interest in taking euro mortgages as lower interest rates in the euro zone and crown strengthening against the euro makes borrowing in the single currency cheaper.

Pravda, page 17

For news on upcoming events in the United States and other Group of Seven countries, see . For a diary of forthcoming Slovak events, double click [SK/DIARY], and a calendar of east European economic indicators, see [CONV/DIARY].

News editor of the day: Peter Laca, on +421 2 5341 8402; fax: +421 2 5341 8403

E-mail: editorial@reuters.sk

Reuters Messaging: peter.laca.reuters.com@reuters.net

For real-time index quotes, double click in brackets:

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($1=25.04 Slovak Crown) ($1=25.10 Slovak Crown) ($1=25.23 Slovak Crown)