Slovak firms say euro benefits outweigh drawbacks

BRATISLAVA, May 19 (Reuters) - Slovakia's major exporters said on Monday that euro adoption in January will eliminate the pain of a volatile exchange rate, prop up pricing transparency, invigorate trade and simplify cross-boarder deals.

The European Commission gave Slovakia the go ahead to swap its crowns for euros two weeks ago. Speculators have since driven the unit to new highs against the euro in anticipation of policymakers setting a strong final conversion rate.

The crown, which hit a new record of 31.47 per euro <EURSKK=> on Monday, is now cutting into exporters' margins but big businesses say the benefits will outweigh the negatives.

Slovak oil refiner Slovnaft SNFT.BV, a unit of Hungary's MOL MOLB.BU and the country's fourth biggest exporter, said the single currency will erase risks.

"For Slovnaft, as for other pro-export companies, the euro's introduction will increase stability and the predictability of development," Slovnaft CEO Oszkar Vilagi told Reuters.

Prime Minister Robert Fico has put his weight behind a strong rate for the benefit of Slovaks, who will be the euro zone's poorest members with just 71 percent of the European Union average gross domestic product per capita.

He believes that the overall effect of a stronger exchange rate will be a net advantage for the country of 5.4 million.