RESTRICTED
WORLD TRADE S/FIN/W/12/Add.11
17July1997
ORGANIZATION(97-3136)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM THE SLOVAK REPUBLIC
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest oftheSlovak Republic toMembers
oftheCommittee onTrade inFinancial Services.
_______________
Slovakia hereby submits itsinitial offer ofspecific commitments infinancial services.
Commitments adopted bySlovakia during lastnegotiations havebeentaken asbasisforfurther
improvements tothemarket access which isalready providing substantial degree ofliberalization and
guarantee comprehensive market access andnational treatment toforeign financial services providers.
Initial offerisreflecting domestic deregulation process inalleconomic sectors, where financial
services playacrucial role.
Thepartialchangesandimprovementscontainedintheinitialofferarebasedonthedevelopments
inregulatory framework inthefieldoffinancial sector, banking industry, capital market andinsurance.
Deregulation ofthefinancial services sector isbeing under almost permanent review, however, careful
evaluation ofimpact offundamental steps undertaken isabsolutely necessary. Therefore, theinitial
offerrepresentsmodestimprovementofexistingcommitments,takingintoaccountliberalizationmeasures
implemented intheprevious negotiations.
Slovakia supports theprocess ofliberalization onmultilateral basis, andinconnection with
itseconomic environment within itspossibilities inthisfield, itwillcontribute tothisinitiative.
Itgoeswithout saying thatthisoffer isconditional upon other negotiating parties approach
inproviding comprehensive commitments based onMFN andNational Treatment basis. Slovakia
reserves therighttoreduce, modify orwithdraw thisofferinwhole orinpartduring thenegotiating
process, provided satisfactory commitments byother participants arenottaken.S/FIN/W/12/Add.11
Page2SLOVAK REPUBLIC
SPECIFIC COMMITMENTS ONFINANCIAL SERVICES -INITIAL OFFER
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
7. FINANCIAL SERVICES
Measures applicable toallsectors infinancial services:
1)Commitments inthisChapter arebased ontheAgreement onTrade inServices, theAnnex onFinancial Services andtheUnderstanding onCommitments
inFinancial Services.
2)Market access commitments withrespect tothe"cross border supply" and"consumption abroad" arebound totheextent oftheobligations inparagraphs
3and4ofMarket Access oftheUnderstanding onlytoindividual sectors listed andsubject tolimitations indicated below.
3)Thepurchase oracquisition offinancial services bypublic entities oftheSlovak Republic isgoverned inthisSchedule byArticle XIIIoftheAgreement.
4)Theadmission tothemarket ofnewfinancial services andinstruments maybesubject totheexistence of,andconsistency withthedomestic regulatory
framework aimed atachieving toobjectives indicated inArticle 2a/oftheAnnex onFinancial Services.
5)Thecommitments onpresence ofnatural persons arebound according tothegeneral limitations applicable toallsectors inthisschedule (Part I).
6)Otherwise, thecommitments inthisChapter aresubject tothegeneral conditions orlimitations applicable toallsectors inthisschedule.
A. Allinsurance andinsurance-related services (CPC 812)
Thefollowing insurance services areprovided byexclusive suppliers:
Compulsory motor third party liability insurance, compulsory airtransport insurance, theliability insurance ofemployer against injury oroccupational disease
have tobeeffected through theSlovak Insurance Company. Thebasic health insurance isconfined tohealth insurance companies having aLicence for
provision ofhealth insurance granting bytheMinistry ofHealth ofSRaccording totheAct273/1994 Coll. ofLow. Fund pension insurance schemes and
sickness insurance areconfined tothesocial insurance company .Thebasic health insurance andpension fund schemes areconfined totheGeneral Health
Company. These exclusive service suppliers actinamanner consistent withobligations under Article IIoftheGATT andspecific commitments.S/FIN/W/12/Add.11
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
a) Lifeinsurance
(CPC 8121)
b) Non-life insurance
(CPC 8129)
c) Reinsurance and
retrocession
(CPC 81299)
d) Insurance intermediation
(CPC 8140)1) Commercial presence isrequired for
supply of:
-thelifeinsurance ofpersons with
-permanent residence intheSlovak
Republic,
-theinsurance ofproperty onthe
territory oftheSlovak Republic,
-theinsurance ofliability forlossor
damage caused bytheactivity of
natural persons andjuridical persons
ontheterritory oftheSlovak
Republic,
-airandmaritime transport insurance,
covering goods,aircraft hulland
liability.
2) Insurance services covered bymode (1)
except insurance ofairandmaritime
transport, covering goods, aircraft, hull
andliability above maynotbepurchased
abroad.1) None
2) NoneS/FIN/W/12/Add.11
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
3) License isrequired forprovision of
insurance services. Non-resident may
establish aninsurance company withthe
seatintheSlovak Republic intheform of
ajoint-stock company andmayconduct
insurance business through their
subsidiaries withregistered office inthe
Slovak Republic under thegeneral
conditions established intheLawon
Insurance. Insurance business means
insurance activity including brokerage and
reinsurance activity.
Intermediation activity aimed atthe
conclusion ofinsurance contract between
third party andinsurance company may
beprovided bynatural orlegal person
onlydomiciled intheSlovak Republic for
thebenefit oftheinsurance company
having thelicense oftheInsurance
Supervisory Authority.3) Themajority ofthemanagement board of
aninsurance company hastobedomiciled
intheSlovak Republic.S/FIN/W/12/Add.11
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Intermediation contract aimed at
conclusion ofinsurance contract bythird
party withinsurance company maybe
concluded bydomestic orforeign
insurance company onlyonthebasis of
license granted bytheInsurance
Supervisory Authority.
Thefinancial resources ofspecific
insurance funds oflicensed insurance
operators derived from insuring or
reinsuring policy holders withresidence
andregistered office intheSlovak
Republic must bedeposited inaresident
bank intheSlovak Republic andmaynot
betransferred abroad.
4) Unbound except asindicated inhorizontal
section4) Unbound except asindicated inhorizontal
sectionS/FIN/W/12/Add.11
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
B. Banking andOther
Financial Services
a) Acceptance ofdeposits and
other repayable funds from
thepublic
(CPC 81115 -CPC 81119)
b) Lending ofalltypes
(CPC 8113)
c) Financial leasing
(CPC 8112)
d) Allpayments andmoney
transmission services
(CPC 81339)
e) Guarantees and
commitments
(CPC 81199)
f) Trading forownaccount or
foraccount ofcustomers,
whether onanexchange, in
anover-the counter market
orotherwise asfollows:1) Unbound forservices described in
subsectors g),i)andj)andfor:
-transferable securities
-other negotiable instruments and
financial assets (excl. bullion)
2) Unbound forservices described in
subsector i)
1),2)
i) Deposit services areconfined tothe
domestic banks andbranches offoreign
banks intheSlovak Republic
ii) Only authorized domestic banks, branches
offoreign banks intheSlovak Republic
andpersons possessing aforeign
exchange license maytrade inforeign
exchange assets. Only stock exchange
members cantrade ontheBratislava
Stock Exchange. Non-residents can
trade ontheRMSystem Slovakia only
through security dealers.
iii) Non-cash cross-border payments maybe
effected onlybyauthorized domestic
banks andbranches offoreign banks in
theSlovak Republic.1),2) None
2) NoneS/FIN/W/12/Add.11
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
iv) Foreign exchange licences issued bythe
National Bank ofSlovakia isrequired
for:
a)opening anaccount abroad bya
Slovak non-bank resident,
b)capital payments abroad,
c)obtaining financial credit from a
foreign exchange non-resident,
except credits from abroad accepted
byresidents witharepayment period
ofmore than 3years andloans
granted between natural persons for
non-business activities.
v) export andimport ofSlovak currency
andforeign exchange incash and
bullion exceeding value of150thsSKK
issubject toreporting requirement.S/FIN/W/12/Add.11
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
- money market instruments
(cheques, bills, certificates,
deposits, etc.)
(CPC 81339)
- foreign exchange
(CPC 81333)
- exchange rateandinterest
rateinstruments, including
products such asswaps,
forward rateagreements,
etc.
(CPC 81339)
- transferable securities
(CPC 81321)
- other negotiable
instruments andfinancial
assets (excl. bullion)
(CPC 81339)
g) Participation inissue ofall
kinds ofsecurities
(CPC 8132)vi) Foreign exchange assets arerequired to
bedeposited withanauthorized domestic
bank orbranch ofaforeign bank inSR.
vii) Only domestic foreign exchange entities
cangrant andobtain guarantees and
liabilities according todetermined limit
andprovisions ofNBS
3) Banking services maybeprovided only
bydomestic banks orbranches offoreign
banks authorized bytheNational Bank of
Slovakia intheagreement withthe
Ministry ofFinance. Thegranting of
authorization isbased ontheconsideration
ofcriteria relating, inparticular, to
capital endowment (financial strength)
professional qualifications, integrity and
competence ofthemanagement and
economic usefulness oftheprojected bank
activities. Banks canbeestablished as
joint-stock companies orpublic
(state-owned) financial institutions.
Private banks maybeestablished asjoint
stock companies only. Thepurchase of
shares ofexisting bank issubject toprior
approval oftheNational Bank of
Slovakia. Investment services canbe
provided inSRbybanks, investment
companies, investment funds and
security dealers which have legal form of
joint-stock company withequity capital
according tothelaw.3) Aminimum ofone-third oftheBoard of
Directors must becitizens oftheSlovak
RepublicS/FIN/W/12/Add.11
Page9Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
i)Asset management
(CPC 8119, CPC 81323)
j) Settlement andclearing
services forfinancial assets
(CPC 81319,
CPC 81339)
k) Advisory andother
auxiliary financial services,
incl. credit reference and
analysis, investment and
portfolio research and
advice, advice on
acquisitions andon
corporate restructuring and
strategy
(CPC 8131)
l) Provision andtransfer of
financial information and
financial dataprocessing
andrelated software by
providers ofother financial
services
(CPC 8131)Foreign investment company or
investment fund isobliged torequire a
permission from theMinistry ofFinance
forselling itssecurities orinvestment
certificates unitontheterritory ofthe
Slovak Republic.
Securities maybetraded publicly onlyif
relevant authorization hasbeen granted
andprospectus covering thesecurity has
been approved bytheMinistry of
Finance. Theauthorization maynotbe
granted ifpublic trading insecurities isin
conflict withtheinterests ofinvestors, is
inconsistent withthegovernment financial
policy orifitdoes notconform withthe
requirements ofthefinancial market. The
business ofsecurity dealer, stockbroker or
organizer ofanover-the counter market is
subject toauthorization oftheMinistry of
Finance. Settlement andclearing services
relating tochange ofphysical property
ofsecurities arerecorded inforallkinds
ofpayments gothrough Centre of
Securities -SCP(Clearing andSettlement
House forSecurities). Cash partclearing
andsettlement goes through Banking
Clearing andSettlement House -BZCS
(where theNational Bank ofSlovakia is
major shareholder)
4) Unbound except asindicated inhorizontal
section4) Unbound except asindicated inhorizontal
section