Topolánek: Govt ready to support exporters indirectly due to crisis

Prague, Nov 30 (CTK) - The cabinet is prepared to support Czech exporters indirectly if they are negatively affected by the global financial crisis, Prime Minister Mirek Topolanek said on Sunday in discussion programme Partie broadcast by the Prima television.

The Czech economy as an export-oriented country could face problems because of its many links to the surrounding economies, said Topolanek.

He said the instruments to support export include the Czech Export Bank, insurer Export Guarantee and Insurance Company (EGAP) and guarantee and development bank Ceskomoravska zarucni a rozvojova banka.

The state could provide financial support to these institutions, Topolanek said, adding the situation of Czech exporters could also be improved by redirecting the inflow of money from structural funds.

The government cannot influence the fact that the economic performance will decrease, but can help Czech exporters or seek to improve the mobility of the labour market, said the Prime Minister.

"The Czech Republic has not been hit by the financial crisis directly," he said.

There is no real crisis in the country because the cabinet has reduced the budget deficit considerably, made public budgets healthier and lowered mandatory spending, for instance, unlike Hungary and other countries, Topolanek added.

A number of Czech companies have introduced cost-cutting measures, mostly layoffs and production shutdowns, because of the financial crisis. Some firms have already announced a collapse.

The crisis could have a bigger impact on the Czech economy only if the economic growth slows down below 3 percent a year, Topolanek said.

But the International Monetary Fund (IMF) has said in its latest report such a development could happen in the country.

The Czech economy should slow down below 2 percent in 2009 from this year's estimate of 4 percent because of the impacts of the financial crisis, the IMF said.