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 specifyContinue Reading

Nervousness surrounding the sale of one of two last remaining city breweries in the Czech Republic is mounting. A week before Náchod city representatives vote on who should get what share in the successful Primátor brewery, prospective buyers are one-upping one another with their bids and diverse strategies. The company Russian Tradition Group is a hot candidate. It initially offered CZK 165 million for the entire brewery and smaller sums for smaller stakes in the brewery. Now the company is offering CZK 165 million as a premium for buying the entire package of Primátor shares. It also has two other possible strategies: splitting the shares with LIF (liberecký fond), one of the other companies vying for the shares, or co-owningContinue Reading

The Czech government approved an amendment to the country’s bank law Tuesday to double the guarantee for bank deposits. The bill, which still needs to be approved by Parliament, proposes that bank deposits in the Czech Republic be fully guaranteed up to EUR 50,000, Finance Minister Miroslav Kalousek said. Now the Czech Republic guarantees deposits up to EUR 25,000.Continue Reading

Euro adoption in the Czech Republic is likely to be postponed due to the global financial crisis. “I was always convinced that an early euro adoption is the right way to proceed. When many of the key eurozone countries say that Stability and Growth Pact does not need to be of fundamental importance for them, I am hesitating very much about the date of our eurozone entry,” Finance Minister Miroslav Kalousek said Saturday. He wants to put off the decision on the euro adoption date by one year. However, companies that generate a significant part of their revenues on foreign markets, still insist that the single European currency be introduced promptly. “It has nothing to do with the current crisis.Continue Reading