(The Fleet Sheet-LN/13) Václav Klaus blamed the “super restrictive” policies of the Czech National Bank for causing good bank loans to turn into bad ones. There is a complete misunderstanding at the CNB as to what a bad loan is, he said, and how good loans turn sour. His government intentionally held up bank privatization, he noted, because he did not want the privatized banks to behave like Živnobanka, which acted as a parasite on the banking system by only touching exclusive deals. Klaus also said that the idea of inflation targeting was one of the CNB’s tragic mistakes. He argued that there needs to be a fundamental shakeup on the Bank Board. Mainstream economists without too many ties to the old State Bank need to be put in, he said.