The state will start to cover IPB's losses
Article Abstract:
CSOB (Prague, Czech Republic), bank, should probably complete contracts on the coverage of a guarantee for Investicni a Postovni banka (IPB) (Czech Republic) with the state on 10 Jun 2001. In Jun 2000 CSOB received the state gurantee for IPB's losses during the acquisition IPB. The coverage of the guarantee will be one of the highest items for state finances compared to the last few years. According to available information, there is an accord in the volume of bad credits with a 1% deviation, which will be transferred to the state bank Konsolidacni banka (Czech Republic). The bank's losses are covered by taxpayers. The nominal value of the credits should be nearly CEK 100 bil. CSOB will keep the assets of the former IPB on the level of about CEK 200 bil. About 50% of the assets will be in a special regime and the state will participate in the coverage of the bank's losses. The market value of the bankrupt bank IPB has not been specified.
Publication Name: Mlada Fronta Dnes
Subject: Business
ISSN: 1210-1168
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
The state guarantee for IPB's losses will cost CEK 7 bil
Article Abstract:
CSOB (Prague, Czech Republic), bank, should pay about CEK 7 bil to the state for a guarantee for the coverage of the losses of the former bank Investicni a Postovni banka (IPB) (Czech Republic). The guarantee was given by the Ministry of Finances. The price for the guarantee is a part of the solution of unprofitable inheritance from IPB. According to expert analyses, the level of the losses should be about CEK 95 bil. IPB's unprofitable transactions worth CEK 46 bil will be directly taken over by the state bank Konsolidacni banka (Czech Republic). According to auditors, IPB's transactions worth another nearly CEK 130 bil are problematic too. The transactions will remain under the control of CSOB. The unrecovered part of the transactions will also be paid by the state. According to estimates, the loss should be about CEK 50 bil. IPB would be unsalable without state guarantees.
Publication Name: Mlada Fronta Dnes
Subject: Business
ISSN: 1210-1168
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The pain of waiting gives way to the pleasures of success. PE ratings give no forecast. No pain, no gain
- Abstracts: Are investors reluctant to realize their losses? Improved methods for tests of long-run abnormal stock returns
- Abstracts: Staropramen will absorb billions of Czech crowns. The court does not confirm the merger of breweries. Plzen is the leader in the field of beer exports
- Abstracts: Ceska Gumarenska corrects its loss. The construction firm ZPSV raises outputs. Ceska Zbrojovka decreases its outputs
- Abstracts: Polish vodka attracts Stock. The buyer of Becherovka wants guarantees from the state. JBKB invests CEK 800 mil