FinMin invests state money in commercial banks in CR - Babis


27.03.2014 20:46

Prague - The Finance Ministry has invested the money, which it previously had on the accounts in the Czech National Bank (CNB), in commercial banks in the Czech Republic, Finance Minister Andrej Babis (ANO) said in an interview for the Czech Television (CT) today.


Předseda politického hnutí ANO Andrej Babiš na mimořádné schůzi Poslanecké sněmovny, na které by poslanci měli projednat služební zákon, zákon o registru smluv, rozšíření pravomoci Nejvyššího kontrolního úřadu a změnu jednacího řádu dolní komory. ČTK Krumphanzl Michal

By March 17, the Czech Republic had earned an income of Kc45m from the investment, Babis told CT.

The ministry has invested tens of billions of crowns worth of the state money in 10 to 15 banks based in the Czech Republic, including Ceska sporitelna and Komercni banka, for example, he said.

"And we have received 0.27 to 0.35 per annum on the investment," Babis said. The interest rate on state money deposited in the CNB is usually about 0.04 percent.

Babis told CT the money was "lying idle" in the central bank. He refuted fears that investing the money in commercial banks is risky, unlike depositing it in the CNB.

Czech banks are "the best in Europe", according to Babis, and are "stuffed with money".

"Moreover, it is, of course, guaranteed, like bonds," Babis said.

The idea to invest state money in commercial banks was not born in his head, but was suggested by employees of the Finance Ministry whom he urged to optimise the use of the state's finances.

The information that Babis has invested several tens of billions of crowns worth of state money was released by daily E15 last week.

Babis is planning to generate an income of Kc150m from the investment of the state money this year, E15 said.

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