An official from the state Konsolidacni banka (KoB) estimated that CZK 10 bil. in assets will be transferred from Ceska sporitelna to KoB this year. This transaction would be in line with the “Restructuring and Guarantee Agreement” concluded between CS and KoB at time of CS’ privatization early last year, which allows CS to sell to KoB (or KoB to buy from CS, as seems to be the case here) certain government-guaranteed, ring-fenced assets at a predetermined price, and should not come as a surprise. In this regard, only the amount (CZK 10 bil.) of the asset transfer represents fresh news, and is primarily useful for analysts in making detailed CS’ loan portfolio projections. More ring-fenced assets may be transferred in 2002. The transfer of the first CZK 10 bil. in assets according to the pre-determined rules does not affect the value of CS in any significant way, and should not have an effect on the stock (one should not be moved by a front-page headline in a Czech newspaper today that reads “the state will pour CZK 10 billion into CS”).
(Ondřej Daťka)