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Czech Watch - 10 May 2002

10.5.2002 10:19

A bill for financing Gripen fighters passed yesterday thanks to votes of MPs from CSSD and KDU-CSL. Among those supporting the bill were several MPs from US-DEU and KSCM. MPs of ODS and most of Communists and Unionists voted against the measure. The bill now has to pass the Senate, where it might meet more resistance. The state would pay CZK 49.9bn for 24 fighters and another billions for equipment, training in Sweden and Great Britain, weapons and financing costs. Financing capital would be provided by money from Cesky Telecom sale; until the sale is completed funds from the Czech export bank might be used.

Parliament overrode the veto of Senate and approved the bill on financial arbitrator at its last meeting before the elections. The law will have to signed by the President as well. The arbitrator should decide on disputes between bank clients and banks including problems with credit and debit cards over sums of up to CZK 1.5mil.

British central bank decided yesterday to leave its key interest rates unchanged. The repo rate stands at 4.0%, the lowest level for the last 38 years. A bright future is expected in a near term, however, recent development looks like a very slow acceleration of the economy. GDP rose just by 0.1% in 1Q in comparison with previous quarter.

Slovakia: industrial output increased by 0.7% y/y in March following a 5.7% rise in February.

A little less favorable information comes from Hungary. March industrial output rose 2.5% m/m but the volume of production stagnated on year-on-year basis.

Germany has to face much worse issues. The industrial output fell surprisingly in march by 0.8% m/m and 3.8% year-on-year.

Click here for the „Czech economic daily“ in .pdf format.

Radim Krejčí

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