Czech Export Bank activities in Russia likely to be ceased in future.

By bne IntelliNews September 14, 2010
The activities of state-owned Czech Export Bank (CEB) in Russia might be ceased in the future as the country has stabilised and support to exports might not be needed any more there, industry minister Martin Kocourek stated. Kocourek underlined that the Czech Republic should prepare a new export strategy for 2011-2016, as there is no use of having institutions supporting exports to the EU, but on new markets like Syria and Algeria, where local commercial banks are not active. PM Petr Necas expressed a similar opinion, saying that the state should create preconditions for local exporters to diversify their markets, including countries outside the EU. CEB, established in 1995, provides state support to exports by offering export loans and other services related to exports. In 2009, CEB provided loans and guarantees to local exporting companies in the value of CZK 23.5bn (EUR 888.6mn), which represented a 14.6% y/y growth. The value of provided loans grew by 16% y/y to CZK 19bn. CEB shareholders approved a 47.5% capital hike to CZK 2.95bn in April 2009 with the objective to support exports as part of the country's anti-crisis package. After the capital hike, the stake of the state institutions is 72.9% and that of the state insurance company Export Guarantee and Insurance Corporation (EGAP) - 27.1%. In August 2009, the international rating agency Moody's downgraded CEB's long-term foreign currency issuer and senior unsecured ratings to A1 from Aa1 with a stable outlook, but in August this year it revised its outlook to positive in line with the revision of the outlook on the sovereign rating.

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