In Business News this week: foreign investment in the Czech Republic rises to pre-crisis levels; the country’s grey economy amounts to 565 billion crowns; the Transport Ministry plans to raise road toll by 25 pct next year; decrease of new cars’ prices in the Czech Republic are among fastest in Europe; debts of Czech household keep rising and are more difficult to collect; and the famed Czech distiller Rudolf Jelínek is moving its headquarters to Holland.
Foreign investment in Czech Republic rises to pre-crisis levels
Czech Republic’s grey economy amounts to 565 billion crowns
Transport ministry to raise road toll by 25 pct next year
The Transport Ministry is planning to increase the toll on Czech roads by 25 percent next year, the daily Hospodářské noviny reported on Thursday. The increase should bring another two billion crowns into the ministry’s budget, affected by the government austerity measures. The ministry also plans to raise the price of the annual highway pass for personal vehicles, from 1,200 to 1,500 crowns, or over 88 US dollars. That should generate additional 700 million crowns for the ministry. However, the Czech Automobile Association called the plan “a provocation” as Czech roads are among the worst in Europe.
Decrease of new cars’ prices among fastest in Europe
Czech households’ debts up in June to 1.08 trillion crowns
Debts of Czech households with banks and other financial institutions rose by 7.3 billion crowns in June to 1.081 trillion crowns, or more than 63.7 billion US dollars, the Czech National Bank said on Friday. Over the past year, the households’ debts rose by 69 billion crowns. The Czech Statistical Office has warned that expenses of most Czech households grow faster than their incomes; only 40 percent of them would be able to pay an unexpected expense of 8,500 crowns. It is also becoming increasingly difficult to collect debts from those unable to pay; several large Czech debt colleting agencies have complained about a sharp increase in cases that end up in court.
Czech distiller Rudolf Jelínek moves its headquarters to Holland
The largest Czech distiller Rudolf Jelínek is moving its headquarters to the Netherlands, the daily E15 reported on Tuesday. The head of the company’s board, Zdeněk Chromý, said the main reasons behind the move included a higher level of protection, a better position for negotiations with the company’s partners on supplies and acquisitions, as well as a more stable legal environment. Rudolf Jelínek follows several large and medium-sized Czech firms including PPF, NWR and Zentiva who have also established their headquarters in the Netherlands. Last year, the firm adopted a holding structure and now owns distillers in Bulgaria, Romania and Chile. However, the firm says it has no plans to close down its original plant in the Moravian town of Vizovice.