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Report: Czech finance ministry to get full control of export bank, insurer

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Report: Czech finance ministry to get full control of export bank, insurer

The Czech government approved the full transfer of ownership in state lender Ceská exportní banka a.s. and Export Guarantee & Insurance Corp., or EGAP, to the finance ministry from the ministries of agriculture, industry and international affairs, E15 reported March 14.

The three ministries will have representatives on the supervisory boards of the bank and insurer, but the finance ministry will be the sole shareholder, which is expected to improve the functioning of the financial institutions, Prime Minister Andrej Babiš was cited as saying. The transfer will require legislative changes and approval by the Czech central bank, the report noted.

Ceská exportní banka and EGAP are still dealing with losses incurred as the result of financing several failed projects between 2007 and 2011, some of which are being investigated by the police. The value of bad loans at Ceská exportní banka stood at 20.6 billion Czech koruny at the end of 2017, down from 42 billion koruny in 2015, E15 said.

As of March 14, US$1 was equivalent to 20.58 Czech koruny.