MARKET INFRASTRUCTURE

KPMG To Advise On Slovakia CSD Privatisation

A tendering committee set up by the Slovakian Banking Association and the Fund of National Property and the Ministry of Finance of the Slovak Republic has chosen KPMG to advise its members on the privatisation of the CSD in Bratislava.

A tendering committee set up by the Slovakian Banking Association and the Fund of National Property and the Ministry of Finance of the Slovak Republic has chosen KPMG to advise its members on the privatisation of the CSD in Bratislava.

The CSD is currently 100% owned by the Ministry of Finance. It is expected to pass ownership to the Ministry of Economy by the end of October 2005, which will in turn pass ownership to the Bratislava Stock Exchange (BSE), which is controlled by the Fund of National Property. BSE will become the 100% owner of the CSD and the Fund of National Property's stake in BSE will be increased from 22% at present to almost 66%.

"The privatisation process is expected to be completed by August 2006," says Matej Letko, Head of Custody at HVB in Slovakia. "It is widely expected that the outcome of the CSD privatisation will improve the current capital market infrastructure and logistics."