Sub-custody guide: Slovakia

(Created: 24.02.2014 00:00, Source:

The Slovak Republic is expecting many changes to its capital markets over the next few years. In addition to transposing EU Directives, the Slovakian government is expected to focus on removing legislative barriers to market development.

The Ministry of Finance's development strategy includes the creation of a new CSD under the name Slovakia Clearing CDCP, which is expected to begin operations in 2015 on a full membership principle adopting European market standards, including SWIFT.

One of the persistent problems of the Slovakian capital market is low liquidity, although that situation could improve as the government is set to privatize its 49% stake in Slovak Telekom, most likely through an IPO. "The sale of Slovak Telekom would be the first time that the government has privatized through IPO, after passing a law that allows shares to be sold on equity markets," says Zuzana Milanová, head of global securities services Slovakia at UniCredit.

The nominee concept is fully recognized with a free choice of account structures possible and non-resident investors enjoy 0% withholding tax on government bonds, treasury bills, corporate bonds and equities, adds Katarína Markova-Rusnáková, head of GSS Slovakia at Raiffeisen Bank International.

Full article: Sub-custody guide - Slovakia