The Czech government and the central bank yesterday issued a joint statement that they expect IPB owners (i.e. Nomura) to take all necessary steps toward stabilizing the bank. If these steps are not effective, the government and the central bank are ready to take measures themselves, according to the statement. The statement was issued in face of increased media attention into the state of the bank and a growing concern among IPB depositors about the safety of their savings. Moreover, Czech Cabinet is to discuss IPB at its meeting today. As we reported yesterday, the two major scenarios in case current negotiations between Nomura and potential investors in IPB fail are (i) forced administration of IPB imposed by the central bank and (ii) re-nationalization of IPB and a subsequent new sale by the state. Also, IPB should release to its shareholders its 1999 audited figures on June 26, two days before the bank’s AGM. It is hoped that the figures and auditor’s statement will clarify the degree of IPB’s underprovisioning, though it is not clear to what extent the figures will reflect the transfer of some of IPB’s receivables to a subsidiary, an act that has been criticized by the central bank. The AGM on June 28 is seen as a deadline for Nomura to strike a deal.
(Ondřej Daťka)