The state will increase its debts by another CEK 226 bil
Article Abstract:
Czech Republic: The debts of the state will increase by at least CEK 226 bil during 2001-2004. The sum corresponds to a 10% output of all the economy. The growth of the debt will be influenced mainly by the financial clearance of banks, the bad credits of which were transferred by the government to the state bank Konsolidacni banka (KoB) (Czech Republic) before privatization. CEK 83 bil were transferred from Komercni Banka and CEK 43 bil from Ceska Sporitelna and about CEK 100 bil from the bad assets of Investicni a Postovni Banka. The settlement of the pyables can increase the public debt from the current 17% of Gross Domestic Product (GDP) to 35% of GDP shortly. The problem is not the level of the public debt but its fast growth. The public debt of the Czech Republic should be nearly CEK 400 bil in 2001, 20% of GDP. If the state decides to redeem KoB's debts of CEK 226 bil by the release of bonds, the public debt will increase by the sum. The government can decrease the costs or turn them back to zero if it uses proceeds from privatization or the contingent revenue from the sales of bad credits and other assets. The proceeds from the privatization that is left to be done are estimated at about CEK 300 bil.
Publication Name: Mlada Fronta Dnes
Subject: Business
ISSN: 1210-1168
Year: 2001
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State clerks will not improve their situation
Article Abstract:
Czech Republic: The government approved the deficit of the 2000 state budget on the level of CEK 10 bil at the end of May 2001. The deficit will further increase after the inclusion of the loss of Konsolidacni Banka (KoB), which should be CEK 60 bil in 2001. The results of KoB have been a part of the state budget since 2001. The opposition contract, which agrees a deficit of CEK 10 bil, was arranged in 1998 and does not count on the losses of KoB. The total expenditures and incomes of the budget will be known in the summer of 2001. The proposal of the budget will result from the 3.8% growth of the economy, the average inflation rate of 4.4% and the unemployment rate of 7.6%. The real wages of state clerks will increase by about 1% in 2002 compared to 2001.
Publication Name: Mlada Fronta Dnes
Subject: Business
ISSN: 1210-1168
Year: 2001
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According to the government, the deficit of the state budget will be CEK 10 bil in 2002
Article Abstract:
Czech Republic: According to an order of the government, the Finance Ministry should prepare a proposal of the 2002 state budget with a deficit of CEK 10 bil. This deficit will increase further by the loss of Konsolidacni Banka for 2001. The loss is estimated at CEK 60 bil at the moment. The budget's incomes are estimated at about CEK 700 bil. The government has not decided the concrete level of the 2002 incomes and expenditures. The expenditures have to be reduced to see the reported level of the deficit. They should decrease by CEK 10-15 bil in 2002 compared to 2001. The main problem is a high level of social expenditures, the reduction of which has not been decided by the government for the moment.
Publication Name: Mlada Fronta Dnes
Subject: Business
ISSN: 1210-1168
Year: 2001
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