Minister for Regional Development Jiri Cunek proposed end of regulated rents in the form of two-year notice without stating a reason. After year 2010 rents would depend upon agreement between owner and tenant without state regulation.
Czech households’ debts grows by 30% a year, according to Jan Frant, head of Czech National Bank financial stability department. According to Mr. Frant it is a natural process which brings Czech household debt closer to the level in advanced European countries.
Total value of new construction contracts in the 4Q06 increased by 40.2% y/y to CZK 89.2bn. Average value of one new contract reached CZK 3.9m.
Hungary completed Malev airline privatisation. Hungarian privatisation company ÁPV expressed its consent with Malev sale into the hands of russian company KrasAir. For 100% state KrasAir should pay HUF 200m. KrasAir will also assume Malev debts in the value of HUF 13bn.