- After some huffing and puffing, the French bank Credit Agricole has finally left the privatization tender for the Komercni banka. Front-runners are allegedly Italian UniCredito and another French bank, Societe General, both bidding above the CZK 35bn threshold.
- Another foreign investor, the Dutch Philips, gave up hopes of a friendly settlement between the town of Hranice and a landowner that refuses to sell her plot to the city, and said it would pay the price itself. For Philips, to be sure, the price around CZK 15mil is peanuts, but it shows how poorly the town was managing the investment.
- The cabinet will allegedly discuss the 2002 budget proposal at its regular meeting today. As year 2002 is the election year (Lower Chamber, a third of the Senate and, eventually the presidency are all for the grab) the Social Democrats will seek some budgetary fudge that would allow them to continue spending spree and at the same time to look as responsible government. Expect another wild guesses of privatization revenues and alike.
- The Czech crown was flat on Tuesday, lacking any momentum. All eyes are now on the CNB board that meets on Thursday to discuss interest rates. However, as the central bank will probably do nothing, there is little to be expected on the koruna market.
- Bonds' losses abated, but the new level seems to be stabilizing - see table.
| late May 29 | bond yield | late May 28 |
| CZK/EUR | 34.31/33 | - | 34.28/31 |
| CZK/USD | 39.80/83 | - | 39.87/89 |
| State 6.75/05 | 103.50/85 | 5.61/58 | 103.35/65 |
| State 6.95/16 | 101.05/35 | 6.82/79 | 101.00/30 |
(Ondřej Schneider)