A government spokesman reported yesterday that, after all, the Cabinet managed to discuss Komercni banka guarantees late at night at its Tuesday meeting. The issue therefore was not postponed, as we reported in our Morning Note yesterday, based on a newspaper report. Cabinet approved a Finance Ministry proposal that envisages specification of government KB guarantees by the government prior to the issuance of an information memorandum, scheduled for release mid-September. KB stock recovered its morning’s losses during the day and closed just 0.2% down yesterday. The size of government guarantees is likely to be established (and approved by Cabinet) in early September.
(Ondřej Daťka)