PPF Group, owned by Petr Kellner, one of the richest Czechs, is negotiating with Milan Janků’s development company ECM Group. According to information available to E15, PPF wants to acquire a significant share in the Pankrác projects City Tower and City Empiria, the biggest project of ECM Real Estate Investments (ECM REI). This way the company could obtain the necessary capital, which is so difficult to get on the market these days. Through his company ECM Group, Milan Janků has a 30% share in ECM REI. “PPF wants at least a 50% share in this project,” a source told E15. Interested in the skyscraper PPF is leasing several floors in two Pankrác buildings that are the focal point of ECM’s
The Czech banking system is sound and the economy is healthier than its Hungarian counterpart, but the country is still at risk of contagion from the global financial crisis, according toZdenek Tuma, the governor of the Czech central bank.
The Czech property market has for the past years been associated with words like boom and record-high, but economic recession is expected to cause a slowdown or stagnation in the sector.
Iceland’s Straumur-Burdarás Investment Bank (SIB), backed by the country’s richest man, Björgólfur Thor Björgólfsson, opened its subsidiary in the Czech Republic after the financial crisis in Iceland.
Interbank money loans among Czech banks have become much more expensive and are provided for only very short time periods. Decreased trust and cash at its highest value – that is what the Czech banking market looks like these days. Everyone wants to have as much cash in their balance as possible. That is what bankers told HN in an anonymous poll. To get a loan for longer than one day is basically impossible in the Czech Republic. Also the rate for money loans has been increasing. While before the crisis, banks loaned to one another at official interbank rate – the so-called Pribor – now they loan money for Pribor plus extra money. Moreover, these rates have jumped significantly.
The global financial crisis, which has been crushing banks all over the world, has directly hit a Czech bank for the first time. The Belgian KBC, ČSOB’s parent company, announced Wednesday it is expecting nearly EUR 1 billion losses in the third quarter of this year. The reason for the losses is the overvaluation of securities that the company, including ČSOB, bought. The investment problems will quickly lower ČSOB’s expected profit by CZK 6.2 billion. Spokesman Ivo Měšťánek said if it weren’t for the investement problems, the bank’s revenues would have totalled CZK 8.9 billion in the first three quarters. Now it will be only CZK 2.7 billion. He said the overvaluation of securities will not have any impact on
The Finance Ministry does not plan to issue any state bonds in the coming weeks except for an eight-year floating rate note due to be auctioned on 22 October, Deputy Minister Eduard Janota said on Wednesday.
The residential property market in the Czech Republic is feeling the impact of the financial crisis and the resulting decrease in demand. Some developers are trying to sell entire residential projects while others are looking for strategic business partners. “Right now we are getting offers from smaller developers that want to sell their residential projects,” said Petr Fanta, CEO at Skanska Reality. It is not only smaller companies that are trying to get rid of their projects. Sekyra Group, one of the biggest developers in the country, is trying to sell some projects too. “We have re-evaluated the cost-efficiency of small residential projects and have decided to sell some of them,” said Sekyra spokesman Radek Polák. He refused to specify
Solo Match Works is moving production abroad next year due to worsening economic conditions in the Czech Republic.
The Czech Republic urged EU states on Tuesday to ensure there was no softening of the bloc’s rules on state aid and budget discipline as they race to protect their economies from the financial crisis.