WORLD TRADE
ORGANIZATIONG/SCM/N/38/SVK
28 June 2000
(00-2661)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1 of
the GATT 1994 and Article 25 of the SCM Agreement
SLOVAK REPUBLIC
The following communication, dated 16 June 2000, has been received from the Permanent
Mission of the Slovak Republic.
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TABLE OF CONTENTS
Page
I. ENVIRO NMENT.................................................................................................................. ....2
II. REGIONAL DE VELOPMENT ..............................................................................................3
III. EXPORT PROMOTION .........................................................................................................4
IV. MINING INDUSTR Y............................................................................................................. ..5
V. RESEARCH AND DE VELOPMENT ....................................................................................6
VI. SMALL AND MEDIUM-SIZ ED ENTERPR ISES ................................................................7G/SCM/N/38/SVK
Page 2
I. ENVIRONMENT
1. Title of the subsidy
State Aid for Environmenta l Creation and Protection.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Environmental objectives of investment projects of towns and villages and reduction of
unfinished amount of ecological buildings.
4. Background and authority of the subsidy
1997 – Ministry of the Environment.
5. Legislation under which it is granted
Act No. 69/1998 Coll. on State Environmental Fund.
6. Form of the subsidy
Grant.
7. To whom and how the subsidy is provided
Available to all companies which apply for the subsidy from the State environmental fund
and fulfil the criteria resulting from priorities of the state environmental policy.  These criteria are
always published before the beginning of a respective calendar year.
8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount
budgeted for that subsidy
The total amount of the subsidy provided from the State Environment Fund was
Sk 102.0 million as follows:
Purpose of the subsidy Total costs Amount of the subsidy Proportion
Water protection   31.0   10.1 32.58
Air protection 384.3   38.3   9.96
Disposal of waste 373.2   23.0   6.16
Other activities 195.9   30.6 15.62
Total 984.4 102.0 10.36
9. Duration of the subsidy and/or any other time-limits attached to it
One year.G/SCM/N/38/SVK
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10. Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
II. REGIONAL DEVELOPMENT
1. Title of the subsidy
Support for Regional Development.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Financing of the projects oriented towards creation of new jobs, savings of fuel and energy,
development of tourism and services in regions with social-economic problems.
4. Background and authority of the subsidy
Office for Strategy of Development of Society, Science and Techniques of the
Slovak Republic SR, Acts No. 347/1990 and No. 74/1995.
5. Legislation under which it is granted
Acts No. 347/1990 and No. 74/1995.
6. Form of the subsidy
Grant.
7. To whom and how the subsidy is provided
Available to all companies, of which the projects are in accordance with requirements of the
Commission for Assessment of Projects Promoting Regional Development and which fulfil the
criteria for assessment, approval and financing of regional projects, approved by the Slovak
Government.
8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount
budgeted for that subsidy
The total amount of state aid for the business sector was Sk 47.0 million.  State aid was
provided as follows:G/SCM/N/38/SVK
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Tourism 11.9
Building industry 2.6
Environment 3.0
Wood industry 7.8
Textile and clothing industry 2.0
Engineering 8.5
Glass industry 5.6
Services 5.6
TOTAL 47.0
9. Duration of the subsidy and/or any other time-limits attached to it
One year.
10. Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
III. EXPORT PROMOTION
1. Title of the subsidy
Export Promotion.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Export promotion for companies to cover the costs concerning fairs, exhibitions and
advertising of goods abroad.
4. Background and authority of the subsidy
Foreign Trade Promotion Fund Act No. 379/1996.
5. Legislation under which it is granted
Act No. 379/1996 on Foreign Trade Promotion Fund.
6. Form of the subsidy
Grant.
7. To whom and how the subsidy is provided
Granting of aid is decided by the Board of the Fund based on the application form of the
entity fulfilling the criteria set up in the Act.G/SCM/N/38/SVK
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8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount
budgeted for that subsidy
The total amount of state aid provided by the Foreign Trade Promotion Fund was
Sk 38.0 million.
9. Duration of the subsidy and/or any other time-limits attached to it
One year.
10. Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
IV. MINING INDUSTRY
1. Title of the subsidy
Suppression Programme of Mining.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
The subsidy from the state budget in the area of ore mining is designated to technical works
related to construction of underground security equipment, removal of machinery, adjustment ofmining waters and areas, technical and biological recultivation and operation of sewage works.  The
subsidy in the area of coal mining was oriented mainly to cover social claims of miners linked with
the progressive reduction of production.
4. Background and authority of the subsidy
Ministry of Economy.
5. Legislation under which it is granted
Government Ordinances No. 440/1990, 894/1990, 246/1991, 25 2/1993, 723/1994 concerning
suppression of ore mining, Act No. 44/1988 Co ll. – Mining Act, Act No. 98/1997 Coll. on
Reimbursement of Social  Claims of Miners.
6. Form of the subsidy
Grant.
7. To whom and how the subsidy is provided
Available to all companies dealing with exploitation of coal or ore and executing works
connected with liquidation of mining works, technical and biological  recultivation of the environmentand operation of sewage works.G/SCM/N/38/SVK
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8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount
budgeted for that subsidy
• Total subsidies for ore mining were Sk 145.4 million, of which suppression works amounted to
Sk 114.5 million.
• Total subsidies for coal mining were Sk 184.1 million, of which:  solution of problems of mining
amounted to Sk 104.4 million, the highest admissible exposure amounted to Sk 19.7 million and
exploitation from social reasons amounted to Sk 60.0 million.
9. Duration of the subsidy and/or any other time-limits attached to it
Individual.
10. Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
V. RESEARCH AND DEVELOPMENT
1. Title of the subsidy
Support for Research and Development.
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Promotion of research and development, aimed at restructuring of industry and new
technologies.
4. Background and authority of the subsidy
Respective ministries within their competencies.
5. Legislation under which it is granted
Act on State Budget for the Year 1997, budgetary rules and the Act on Public Procurement,
Decree of the Ministry of Finance on Fina ncing the Tasks of Research and Development.
6. Form of the subsidy
Grant.
7. To whom and how the subsidy is provided
Financial funds for R&D were granted mostly for restructuring of industry, development of
new technologies in engineering, building industry, chemical and consumer industry and for
universities and the Slovak Academy of Scien ce.  The subsidies are awarded through tender
procedures in accordance with the Public Procurement Act.G/SCM/N/38/SVK
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8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount
budgeted for that subsidy
The total amount of financial funds from the state budget to support R&D was
Sk 2,916 million.  The amount for universities and other expert workplaces including the SlovakAcademy of Sciences, to research in agriculture, geology, health service and services was
Sk 2,407 million.  The amount for the business sector to finance 115 projects was Sk 509 million, of
which Sk 469 million (92.2 per cent) was provided to the solution of tasks in the industry.
9. Duration of the subsidy and/or any other time-limits attached to it
Individual.
10. Statistical data permitting an assessment of the trade effects of the subsidy
Information of the trade effect of the subsidy is not available.
VI. SMALL AND MEDIUM-SIZED ENTERPRISES
1. Title of the subsidy
Promotion of Small and Medium-Sized Enterprises (SME).
2. Period covered by the notification
1997
3. Policy objective and/or purpose of the subsidy
Assistance to SME, employing up to 500 employees, performing in the area of production,
services, handicrafts and tourism focused on development of the business activities, creation of new
jobs and solution of regional policy with high rates of unemployment.
4. Background and authority of the subsidy
Ministry of Economy SR
National Agency for Development of SME (NASME)
Slovak Guarantee and Development Bank (SGDB).
5. Legislation under which it is granted
Act No. 299/1992 Coll. on Promotion of Small and Medium-Sized Enterprises Government
Ordinance No. 740/1994 on Support Loan Programme.
6. Form of the subsidy
Loans, guarantees and grants.
7. To whom and how the subsidy is provided
SME, employing up to 500 employees, having residence and carrying out business in the
Slovak Republic.  Projects are approved by NASME  or SGDB.  Priority was given to the projectsG/SCM/N/38/SVK
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oriented towards modernization of production capacities, improvement of provision of services,
creation and protection of the environment and creation of new jobs.
8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount
budgeted for that subsidy
The total amount of the state support for SME was Sk 153.3 million.
Title of the state support Form of the subsidy Amount of the support in
Sk Million
Support loan programme Lower interest rate 21.1
Programme of the support of SME Paid bank guarantee 35.8
Support development programme oftourismFinancial grant 73.2
Programme of the support of economic
activities leading to the savings of
energyFinancial grant 23.2
9. Duration of the subsidy and/or any other time-limits attached to it
Individual.
10. Statistical data permitting an assessment of the trade effects of the subsidy
Information on the trade effect of the subsidy is not available.
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