Police charge three from Czech Export Bank

Police have charged three people from the Czech Export Bank in connection with the financing of a construction project in Tunisia, Lidové noviny reported Friday, citing the High State Attorney’s Office in Prague. The bank provided 331 million crowns in financing to a Tunisian investor, M.F.M., to develop hundreds of new luxury apartments in Tunisia, to be built by the Czech firm PSJ. The project stalled as a result of technical problems as well as changes under the Arab Spring. After it halted financing, the Czech Export Bank discovered it had none of the usual guarantees or collateral. According to Lidové noviny, PSJ is to trying to salvage the project.

Author: Jan Velinger