The Czech government said on Wednesday it would not make public the terms of a deal to cover losses at the country's third largest bank, IPB sold to CSOB.
Czech Finance Minister Pavel Mertlik said on Wednesday he does not expect any major interest rate moves this year, but said there could be some "minor corrections". Mertlik added at a news conference following a regular cabinet meeting that he agreed with the central bank's (CNB) decision last week to leave its main interest rates unchanged in the face of weaker inflationary pressures.
The Finance Ministry released its macroecomic forecast. The GDP forecast for 2000 was revised to 2.7% from 2.6% saying the impact of slowing growth in Western Europe and the U.S. would be limited. Average inflation forecast was lowered to 4.2% form 4.7% and Ministry keeps its forecast of the trade balance deficit at CZK 140 billion. The darkest point of the Czech economy should be public budget deficit that should amount to CZK 190 billion (9.5% GDP) in 2000.