In Business News this week: Czech National Bank ups growth forecast for 2016; Exports seen topping 4.0 trillion crowns in 2016; Brussels poised to clear massive Czech renewables aid payment; Komerční Banka profits rise in first nine months; Czech Export Bank (ČEB) given 2.5 billion crown bailout:
Czech National Bank ups growth forecast for 2016
Exports seen topping 4.0 trillion crowns in 2016
Czech exports this year are set to rise by 3.0 percent and top the 4.0 trillion crown market for the first time, according to the vice-president of the Association of Exporters, Otto Daněk. He said the figure should be surpassed in spite of the chronic lack of workers in some sectors. Around 160,000 workers are needed with 90% of the vacancies in the manufacturing sector. Czech exports have been helped by the long term low crown policy of the Czech National Bank.
Brussels poised to clear massive Czech renewables aid payment
Komerční Banka profits rise in first nine months
One of the three big Czech banks, Komerční Banka, declared a rise in profit for the first nine months of the year of 7.7 percent to 10.6 billion crowns (around 392 million euros). That figure was boosted by many exceptional items, such as Komerční Banka’s, sale of its stake in the car company Visa Europe. Without that boost the profit figure would actually have fallen by 8.9 percent to 9.1 billion crowns. The number of bank clients rose by around 8,000to stand at 1.65 million.
Czech Export Bank (ČEB) given 2.5 billion crown bailout
The government on Wednesday agreed to a cash injection of 2.5 billion crowns into the Czech Export Bank (ČEB), which helps Czech companies funds export projects in risky financial environments. Much of that sum will be aimed at covering losses from a Czech project to build a power station in Russia. The Czech Ministry of Finance has complained that losses by the bank since 2014 have climbed to around 18.4 billion crowns and have called for its shake up as well as that of the state export insurance agency. Some of the ČEB support has been investigated by the police.