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Ministry foresees 3.1 percent growth this year, more in 2022


Illustrative photo: Oleg Magni, Pexels
In a new prognosis the Czech Ministry of Finance says it expects economic growth of 3.1 percent this year. At the same time officials say that the budget deficit will reach 8.8 percent of gross domestic product in 2021.
Last year the Czech economy was rocked by the coronavirus crisis and shrank by 5.6 percent.
While the Ministry of Finance predicts a 3.1 percent expansion in 2021, others are less optimistic. The Czech National Bank issued an estimate of 2.2 percent growth this year, while the Czech Banking Association has forecast 2.6 percent.
In a paper issued this week, the ministry said it expected that gradual vaccination against Covid-19 would improve the situation surrounding the virus, supporting an economic revival both at home and abroad. ....

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Czech Republic not interested in EU banking union, for now


Prime Minister Andrej Babiš (ANO) has followed a recommendation by the finance ministry not to enter the European banking union for now.
A study carried out by the foreign ministry recommends monitoring the banking union’s development and re-assessing all aspects and impacts of Czechia’s entry within three years – after the Czech Republic takes over the EU Presidency in 2022. Since the Czech government is generally not keen on getting closer to the eurozone, the decision was expected.
The study argued that the country’s financial sector has been more stable than that of many other EU member states and that joining the union would limit the competence of the country’s national bank’s (ČNB) – an institution which has shown reluctance to join the banking union for some time. ....

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EIB and CSOB Leasing sign €130m loan to support SMEs and mid-cap companies


EIB and CSOB Leasing sign €130m loan to support SMEs and mid-cap companies
CSOB Leasing provides a complete range of asset financing for vehicles, machinery and equipment. It serves both corporate and retail customers, through its national network.EIB | Prague | Updated: 18-12-2020 15:12 IST | Created: 18-12-2020 15:12 IST
This loan is part of the €5 billion ‘EU programme loan response to COVID-19 crisis for SMEs and mid-caps 2020-2025’, implemented by the EIB to tackle the economic crisis caused by the pandemic across the EU. Image Credit: Twitter(@EU Commission)
The European Investment Bank (EIB) signed a €130 million loan (equivalent to CZK 3.42 billion) with CSOB Leasing (Ceskoslovenska Obchodni Banka Group), a leading leasing company in the Czech Republic, to support SMEs and mid-cap companies impacted by the COVID-19 pandemic. ....

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