- Ministry of Finance announced that if the government fails to receive the planned CZK 20bn in the UMTS tender, this year's state budget expenditures may be cut. The entire government would take the decision. Two of the three domestic mobile operators reportedly accepted the price asked in the first round provided the payment would be spread over 20 years. The annual revenues for the government from the tender would then be less than CZK 1bn. In addition, the operators demand postponement of the UMTS service until early 2004 and guaranteed exclusivity on the market. The third operator, Cesky Mobil, considers the price CZK 6.7bn for a licence to high. The Czech Telecoms Office (CTU) is supposed to submit evaluation of the two received bids to the cabinet until its next session, scheduled for Aug 22.
- CSOB reportedly filed a bankruptcy petition at the regional court of Brno against aircraft producer Moravan Otrokovice. Two other creditors also joined in. On Wednesday, Moravan representatives are to sign an official contract for the assets of another aircraft producer, Let Kunovice, which they have acquired in a tender. The responsible judge has not made a decision yet. "This does not change anything, we have the money and will sign the contract. We know nothing about the bankruptcy petition against our company and will tell our lawyers to get some information," Moravan's spokesman and commercial director Tomas Stefanek told CTK. CSOB spokesman Milan Tomanek denied that the bankruptcy petition would be related to the transfer of bad assets from CSOB to Konsolidacni banka and he did not even confirm that the bankruptcy petition was really filed by his bank.
- The Czech government granted a five-year corporate tax holiday and import tariff breaks to a unit of Valeo SA producing heat exchangers for cars to support its planned CZK 722.2m plant in Central Bohemia. The government investment promotion agency CzechInvest did not specify the value of the incentives but said the new factory for would create 397 new jobs.
- The crown was trading in a narrow range of 33.80-89 to the euro on Tuesday. Late on the day, the crown was slightly up to 33.86/89 to the euro from late Monday's 33.89/92. Against the dollar, the crown firmed to 37.47/50 from 37.76/78 on Monday. Dealers predict that in the short term, the CZK/EUR should oscillate in a range of 33.75-95, tracking euro/dollar movements.
- In below-average trading, bond prices rose across maturities. Prices of most liquid corporate issues increased by 30-50 bps, KB 8.00/04 jumped full 60 bps. The longest state 6.95/16 added 25 basis points to 99.35/65, yielding 7.02/98 %. The state 6.75/05 rose 30 basis points to 100.65/95, yielding 6.52/42 %.
| late on August 14|| bond yield ||late on August 13|
| State 6.75/05||100.65/95||6.52/42||100.35/65|
| State 6.95/16||99.35/65||7.02/98||99.10/40|