The privatisation saga at the Czech Komercni banka continues. The leading newspaper again repeats that investors are willing to pay significantly less than the government (and the market) would like to believe. Meanwhile, the finance ministry is drafting a "comfort letter" to potential buyer protecting it from feared losses at one o the Komercni banka's subsidiaries.
If privatization of banks is difficult, it pales in comparison to privatization of the energy sector. Even before the government began to solve the intrigue issues (market liberalization, nuclear plant Temelin, should Russians be allowed to buy it), trade unions are nervous and request a handsome CZK 0.5mil per each laid-off worker. Trade unions are not very specific on their idea (laid-off actually when, who would administer the money, etc…), but they threaten to shut down some of the Czech power plants.
The EU's enlargement Commissioner Günter Verheughen (a socialist) stepped up his critique aimed at the Czech parliament Speaker (and the ODS chairman) Vaclav Klaus and called him a dangerous populist. It is a strange strategy on the Verheughen's side and it may further hamper already strained relations between the EU and the Czech Republic.
As the euro marginally recovered, the koruna is at 34.025 CZK/EUR and 39.65 CZK/USD, i.e. above the 34 CZK/EUR and below the 40 CZK/USD thresholds. For actual prices and bond quotations, consult our web page.
(Ondrej Schneider)