In this week’s Business News: Brussels probes Czech Airlines loan, ČEZ sets record profit but warns over outlook, car maker Hyundai gears up for expansion, Prague struggles to make mark on real estate market, and fresh milk sales come to the capital.
Brussels launches probe into Czech Airlines loan
A loan of around 2.5 billion Czech crowns, or around 130 million US dollars to Czech Airlines is being probed by the European Commission because of suspicions it could involve illegal aid. The loan to the carrier was made by state company Osinek in April last year when Czech Airlines faced a cash crisis. The loan was initially secured against some of the airline’s assets but these were later freed up, meaning that no strings were attached to it. The Commission can demand the loan be repaid and impose a fine if illegal aid is found.
ČEZ sets record profit but predicts poor year ahead
Hyundai gets clearance for expansion
Prague struggles to make mark with real estate investors
Prague is the 13th most sought after location in Europe to buy real estate according to a survey of developers and investors released this week by PriceWaterhouseCoopers and the Urban Land Institute. Regionally, the Czech capital trails Warsaw, which was placed eighth. A local representative of PriceWaterhouseCoopers said Prague appeared to have weathered the severe real estate downturn last year and buying interest from international investors is starting to pick up thanks to the city’s profile as a relatively stable and risk free location.