Konsolidacni Banka reports a record debt
Article Abstract:
Konsolidacni banka (KoB) (Prague, Czech Republic), state bank, expects a loss of CEK 77.2 bil in 2001, a loss of CEK 52.3 bil in 2002 and a loss of over CEK 54 bil in 2003. A half of KoB's losses for the next few years will be generated to the debit of bad credits from Investicni a Postovni banka (IPB) (Czech Republic), which were guaranteed by the state during the acquisition of the bank by Ceskoslovenska obchodni banka (Czech Republic) in 2000. The state does not know how to pay the losses at the moment. Currently, it has problems with the coverage of KoB's 1999 loss of CEK 36 bil. A small part of the expected losses should be covered by the National Property Fund from privatization revenues. KoB was set up at the beginning of the 1990's. The original reason for the setting up of KoB was to clear banks of debts from credits from the period of the centrally planned economy. Gradually, governments started to utilize the bank for the solution of various problems.
Publication Name: Mlada Fronta Dnes
Subject: Business
ISSN: 1210-1168
Year: 2001
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Komercni Banka decreased its loss
Article Abstract:
Komercni banka (KB) (Prague, Czech Republic), financial institution, saw a loss of CEK 19 mil in 2000 compared to a loss of CEK 9.2 bil in 1999. The drop of the loss was influenced by state help with the clearance of the bank from bad credits. The government gave a guarantee worth CEK 20 bil for bad credits to KB, which enabled the bank to form reserves of only CEK 7.7 bil. Konsolidacni banka (Czech Republic) acquired Konpo, which controlled KB's bad credits worth CEK 60 bil, during 1H 2000. KB should be sold by the end of 1H 2001. The state plans to sell KB for CEK 35-45 bil. KB's assets are worth CEK 477 bil. The bank saw proceeds of CEK 21.5 bil in 2000, CEK 1.1 bil more compared to 1999. KB dismissed nearly 3,000 employees in 2000. The costs connected with the dismissing amounted to CEK 827 mil. KB should save nearly CEK 2 bil within staff reduction by the end of 2004. The bank has about 10,000 employees currently. Its operating profit amounted to CEK 7.8 bil in 2000.
Publication Name: Mlada Fronta Dnes
Subject: Business
ISSN: 1210-1168
Year: 2001
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Konsolidacni Banka confirms that its losses will grow sharply
Article Abstract:
Konsolidacni banka (Prague, Czech Republic), state financial institution, saw a loss of CEK 12.7 bil in 2000. The bank expects a loss of about CEK 75 bil in 2001, a loss of about CEK 50 bil in 2002 and a loss of CEK 50 bil in 2003. The main reason for the growth of the bank's losses during 2001-2003 is the transfer of debts hidden in Investicni a Postovni banka (Czech Republic). The state has to pay all the bank's losses. It will sell bonds to cover the losses gradually. The losses including interest will be paid by citizens prospectively. The losses include the bad credits of Czech banks and the problems of large companies.
Publication Name: Mlada Fronta Dnes
Subject: Business
ISSN: 1210-1168
Year: 2001
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