Page 60 - CE Outlook Regions 2023

Local banking analysts expect a further drop in mortgage loans, which
was already apparent in the second half of 2022, and consequently a
decrease in real estate prices. The consumer loans segment can in fact
grow because of the lower purchasing power of households which can
seek short-term consumer loans as a way out of the pressure on the
cost of living.

More banks are offering to finance green-oriented projects with a
positive impact on sustainability and the circularity of the economy.

3.6.3 Industry

In its winter forecast, the National Bank of Slovakia (NBS) sums up that
the easing of external pressure in supply chains in 2022, in comparison
to 2021, helped Slovak car, machine, and electronic producers. On the
other hand, the high energy prices were dampening energy-intensive
production, which includes the metal and chemistry industries.

The latest figures for October show that industry recorded a y/y
increase in turnover by 7%. This is an increase in turnover for the sixth
consecutive month. In total for January-October 2022, turnover
increased y/y in all sectors but construction.

3.6.4 Energy & power

Following the government measures dampening price growth, NBS
expects a more moderate increase with gas and heat prices increasing
by some 15%.

The cabinet set price caps for companies at €199/MWh and €99/MWh
for gas applicable to the period of January-March 2023 after which the
measure will be reviewed. The state would cover 80% of expenses
above these levels, and was conditioned by the approval of the state
budget.

Early in 2023 the third block at the Mochovce Nuclear Power Plant is
set to run at full capacity, according to the plans of the Mochovce
operator Slovenske Elektrarne. The new bloc reached minimum
controlled output in October and Slovakia is poised to export more
electricity than it imports after the reactor is fully operational.

In December Slovak parliament approved taxation aimed at the gas
transit pipeline operator Eustream. The Slovak state retains a 51%
share in Eustream, but regional energy powerhouse EPH controls the
remaining shares and exercises managerial control. EPH is also a
one-third shareholder in Slovenske Elektrarne.

Eustream objected to the taxation and said it will approach President
Zuzana Caputova with a request to veto the law.

60 CE Outlook 2023 www.intellinews.com