In Business News this week: the EC recommends Czechs to slash deficit in public finances; Ceske Aerolinie records loss of 175 million crowns in the first half of this year; the Czech government launches privatisation of Letiste Praha; the energy power giant CEZ is to build power station in Vietnam in deal worth 3 billion dollars; and the number of Vietnamese doing business in Czech Republic is on the rise.
EC recommends Czechs to slash deficit in public finances
The European Commission on Wednesday recommended that the Czech Republic cuts its budget deficit to under 3% of GDP by 2008. The Czech Republic could face sanctions including the suspension of EU aid, if it fails to do so. Experts from the Czech Ministry of Finances say this is a realistic target. The deficit in public spending is expected to reach 4% this year but the government's reform plan recently approved by Parliament should bring next year's deficit down to 2.95% of GDP.
Ceske Aerolinie records loss of 175 million crowns in the first half of this year
The Czech national airline Ceske Aerolinie recorded losses of 175 million CZK (nearly 9 million USD) for the first six months of this year. These losses were 77% lower than for the same period in 2006. The company, 90% of which is owned by the state, currently stands 182 million CZK in profit, having made more than 350 million CZK in July. Analysts predict that the firm could make a slight overall profit in two years' time, if it sells off its cargo terminal and catering services.
Czech government launches privatisation of Letiste Praha
CEZ to build power station in Vietnam in deal worth 3 billion dollars
The Czech energy giant CEZ, has signed a deal to construct a power plant in Vietnam, the value of which is thought to be some 20 billion crowns (3 billion USD). The coal-powered plant with an estimated output of 3000 megawatts is to be constructed by Skoda Praha, a subsidiary of CEZ. It is expected to cover one-fifth of the overall energy consumption in Vietnam.
Vietnamese business representatives, who arrived in Prague with their Prime Minister Nguyen Tan Dung, signed the contract on Thursday, along with several other agreements between Czech and Vietnamese firms valued at around 69 billion CZK (3.5 billion USD) in total. In the first six months of this year, the Czech Republic has imported 13 million USD worth of goods from Vietnam, and exported some 90 million dollars worth of products.