New twist in scandal over PM's private finances

Prime Minister Stanislav Gross has revealed the name of the person who guaranteed a six million crown loan for his wife's company. Speaking on a political talk-show on Czech Television, Mr. Gross admitted that the loan had been guaranteed by a friend of the family, Libuse Barkova, who has since been charged with insurance fraud. The Prime Minister said that Mrs. Barkova was not being prosecuted at the time when she helped his wife to acquire the loan.

The Prime Minister, who has been under growing pressure to resign in the wake of a scandal over his private finances, said he had no intention of doing so. He reiterated that he would undergo security screening to clear his name and that an inspection team would look into his wife's company finances.