Trading on the Prague Stock Exchange in SPAD remained suspended on Thursday due to flooding in Prague.
Early estimates of the damages that flood waters have caused in the Czech Republic are expected to exceed 60 billion Czech koruna (USD 2 billion). Similar to 1997, when flooding inundated large areas of the Czech Republic, the Cabinet may issue so-called flood bonds. The measure could face difficulty in Parliament, though, since the Cabinet already intends to run a record-high state budget deficit of CZK 157 bil. (6.4% of GDP) next year.
Milan Prochazka