The European Commission intends to intensify the pressure on the Czech government to make it gradually cancel guarantees it provided to major Czech banks. The Commission is concerned that guarantees for the banks made in the late 1990s may constitute illegal state aid (Financial Times). Finance Minister B. Sobotka said he does not expect the Cabinet to change its opinion on the guarantees, though. The Czech Cabinet argues that the health of the country's banking sector could be at stake if the aid were forced to be repaid. (CTK)
Jitka Oppitzová