In this week's Business News: The Czech Republic leads the EU in the percentage of plastic packaging being recycled; Friday’s early trading saw the Prague bourse slump by 14 percent; the head of one of the companies building a new Hyundai factory in Northern Moravia has accused the company of cutting corners in construction; the seemingly endless Czech housing boom appears finally to be slowing down, according to experts in the industry; Czech trust funds are in their worst condition since the terrorist attacks of 9/11 and Czech anti-corruption police have accused a representative of a money-exchange company in Prague of laundering five billion crowns.
Czechs lead EU in plastic recycling
Prague bourse fluctuates along with global markets
Hyundai accused of building on the cheap
The head of one of the companies building a new Hyundai factory in Northern Moravia has accused the company of cutting corners in construction. Štefan Valíček, head of the Slovak company Kovo has publicly stated that the company used low-quality construction materials and that one of the factories could even collapse as a result. Hyundai has stated that it will investigate the claims, and if they are found to be false, sue Mr Valíček for spreading false rumours. Trial production is set to begin at the plant in November, although a full inspection of the site must still be undertaken by the authorities before a permit is granted and full production begins. The process is expected to take up to six months.
Czechs losing interest in purchasing flats
The seemingly endless Czech housing boom appears finally to be slowing down, according to experts in the industry. This year has seen a 30 percent decrease in Czechs seeking new apartments, while the long-term trend of property value increase also appears to be flat-lining. Some analysts are predicting a crisis as the global economic situation worsens, with property values falling by as much as twenty percent, according to experts. The largest decreases in value are expected to be in apartments that dot the outskirts of Prague, with areas in other parts of the country that have avoided recent price hikes affected less. The Czech Republic is having to come to terms with the prospect of lower economic growth than has been forecast, meaning lower take-home wages and a concurrent decline in the amount that people are willing to spend on new homes – plus a likely credit squeeze that makes getting mortgages more difficult. Meanwhile, those that are currently building new properties hopeful of riding the property boom, are likely to be disproportionately affected by the predicted decline, analysts say.