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January 7th, 2009
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December 10th, 2008 | Archives

Cut above the rest
ČR's interest rates above the eurozone's for the first time since 2002, but not for long, analysts say

BRIEFS


INFLATION Price growth slowed to 4.4 percent year on year in the Czech Republic in November, down from October’s 6 percent and the lowest level since October 2007, the Czech Statistical Office announced Dec. 8. Month-on-month inflation was down 0.5 percent, the biggest drop since October 2006.

MUTUAL FUNDS An overwhelming majority of domestic mutual funds lost value this year, and money-market funds and some bond funds reported low yields, the Capital Market Association reported. Mixed funds, funds of funds and equity funds saw the biggest losses, with equity funds losing on average half their value.
FDI Foreign direct investment in the Czech Republic grew 50 percent to 185.3 billion Kč ($9.2 billion) last year, 130 billion Kč of which was reinvested capital, the Czech Statistical Office reported. The Czech Republic ranks high among countries with the highest share of FDI in its GDP, at 55 percent. The sectors gaining most were services with 53 percent and the manufacturing industry with 42 percent.
FINMIN The Finance Ministry plans to borrow up to 148.4 billion Kč next year, compared with this year’s 179.7 billion Kč, according to the ministry’s state debt–financing strategy. At the close of 2008, state debt is expected to top 1,000 billion Kč. The ministry hopes 15.8 billion Kč of the amount will come from the European Investment Bank. No more than 125 billion Kč will be borrowed from the domestic market.
ČEZ The government earned 34 billion Kč from the sales of shares of the power company ČEZ this year, the Finance Ministry reported Dec. 3. The economic crisis has lowered the share price, so, initially, the sales profits were expected to be closer to 50 billion Kč. The state owns nearly two-thirds of ČEZ.
DOWNGRADES Investors and brokerage firms downgraded investment recommendations on a number of Czech shares, notably energy companies such as NWR and ČEZ, media group CME and used car dealer AAA Auto. Orco Property Group, which suffered share value losses nearing 70 percent in 2008, received an upgrade, as did Komerční banka.

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