The agreement about a regime for privatization receipts among the government and CNB got sharper shape. This year, the government will receive CZK 150bn for the sale of Transgas and Unipetrol. When it sells Cesky Telecom and CEZ, the total amount will increase to over CZK 300bn. Of this, the cabinet plans to convert into crowns and spend CZK 110bn this year, or at least CZK 60bn. This amount will be bought by CNB into its foreign currency reserves. The government should pay up to CZK 6bn as compensation for the losses the central bank CNB will incur as a result of the conversion of foreign currency privatization receipts.
The government also decided to finance a purchase of Gripen fighters by CZK 58.5bn loan offered by BAE Systems, Gripen producer. Another CZK 18.4bn loan should be used to a purchase of fighters' inventory.
The government also said that CZK 15bn from privatization proceeds will be used for a recovery of the North Bohemia region that was negatively influenced by brown coal mining.
The U.S. consumer price index declined 0.2% during the December, that followed no change in November and a 0.3% drop in October. The CPI decrease reflected cheaper energy, food and clothing costs.
Paul O'Neill, U.S. Treasury Secretary, yesterday said, that the U.S. economy is coming out of recession, and the Federal Reserve may not have to continue lowering interest rates to boost growth.
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