Slovakia - Factors To Watch on July 3

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REPO TENDER

The central bank will hold its regular two-week repo tender.

JAN-JUNE BUDGET DEFICIT WIDENS Y/Y

The Slovak central state budget showed a deficit of 11.0 billion crowns ($443.4 million) for January-June, compared with a 10.2 billion crown gap in the first six months of 2006, the finance ministry said on Monday.

[ID:nL02362296] [RTRS-GVD-DBT-SK]

FINMIN SEEKS HIGHER TOBACCO TAX IN 2008

The Slovak finance ministry wants to hike the excise tax on tobacco products next year to comply with EU norms in a move boosting state budget revenues in the coming years, a document showed on Monday.

[ID:nL0213345] [RTRS-TAX-POL-EEU-SK]

CROWN RISES TO 9-WK HIGH, SEEN STRONGER

The Slovak crown firmed to a nine-week high against the euro on Monday, buoyed by gains on the Romanian leu and the Polish zloty, and dealers said further strengthening was in the pipeline.

[ID:nL02750437] [RTRS-MMT-FRX-SK]

SLOVAK DIPLOMAT STEPS IN AS BOSNIA PEACE OVERSEER

Slovak diplomat Miroslav Lajcak took over as Bosnia's peace overseer on Monday, the sixth person to hold a powerful post that supervises the Dayton peace deal agreed after the end of the country's 1992-95 war.

[ID:nL02758416] [RTRS-DIP-POL-BAK-SK]

PRESS DIGEST

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HIGHER EMPLOYMENT TAXES

The Ministry of Social Affairs, run by the largest ruling coalition party Smer, is considering abolishing ceilings for social contibution, effectively raising employment taxes for high earners.

Pravda, page 1

EURO CAMPAING STALEMATE

The finance ministry was forced to halt process of choosing an information agency for euro adoption process for the second time. This time the Public Procurement Office stopped the tender for the communication agency.

Sme, page 1

STATE REGULATOR EYES NEW FEES

The state energy market regulator (URSO) plans to introduce fees for electricity produced by some companies for their own use.

Sme, page 6

CAR HOLIDAYS TO SLOW GROWTH

Planned shutdowns in Slovakia's three car assembly plants, Volkswagen , Kia Motors and PSA Peugeot Citroen , in the summer will slow exports and economic growth.

Hospodarske Noviny, page 1

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

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($1=25.19 Slovak Crown)