In Business News this week: 43,000 Czechs are working legally abroad in the EU’s 15 oldest member states; the Czech National Bank wants to freeze all proceeds generated by the privatization of state assets; the country’s biggest chain of record shops has announced that it will shut five of its stores; the number of people to visit Czech websites has risen in the last two years by over 1.5 million, and a newspaper accuses Czech Railways of failing to inform clients about discounts that they are entitled to.
Thousands of Czechs working in old EU member states, but Czech migration rate remains low
Press: Czech National Bank wants to freeze proceeds generated by privatisation
The Czech National Bank wants to freeze all proceeds generated by the privatisation of state assets, so as to reduce the flow of money into the Czech economy, the newspaper E15 reported this week. In practice, this would mean that money generated by the sale of shares in Czech Airlines, the Czech post office, and the Budejovcky Budvar brewery, would be deposited in a special National Bank or Finance Ministry account. This in turn would mean that such sums would not be converted into crowns, and so the demand for Czech currency, which leads to a strengthening of the crown, would not increase further. A spokesperson for the Finance Ministry confirmed that talks were underway with the National Bank concerning the matter.
Bontonland to close five stores
The Czech Republic’s biggest chain of record shops, Bontonland, announced this week that it was to shut five of its stores around the country. The closures amount to a sixth of Bontonland’s overall number of outlets. The chain said that it would now focus increasingly on internet sales, and that the closures were a result of the growing trend amongst customers to buy their music over the internet. The firm said that in the past year, internet sales had risen by over 50% - but if you like nothing more than perusing shelves of CDs then never fear, there will still be seven branches of Bontonland left in Prague alone.