The price of flats in the Czech Republic is overinflated by 15 to 20
percent, according to the Czech National Bank. However, the bank board has
not changed its recommendations for mortgage lending. The forecast is that
the growth in real estate prices will slow in the coming months.
According to Deloitte, the price of an apartment in the Czech Republic rose to CZK 60,700 per square meter this year. An apartment with an area of 70 meters is selling for 4.2 million on average. In the large cities, especially Prague and Brno, prices are significantly higher.
Czech households' debt to banks and credit unions rose by CZK 9.24
billion to almost CZK 1.713 trillion in August when compared with July
data, this according to statistics released by the Czech National Bank on
Monday. In year-on-year terms the rise was higher than CZK 101.9 billion.
The debt of non-financial corporations rose by CZK 16 billion compared to
July and currently amounted to 1.145 trillion crowns. In year-on-year
terms, this was a CZK 42 billion increase.
Household debt has been rising continuously since February 2016, with mortgages making up roughly three-quarters of the entire debt, according to the Czech National Bank.
More than a half of Czech children, some 54 percent, have their own bank account. A further 41 percent say that they want to have it, while just 5 percent do not, according to a survey conducted by Bank Creditas. More than two fifths see their mobile phones as the main access point for using their bank account.
The Czech Ministry of Culture needs to be more uniform and transparent in
how it dispenses grants and funds activities in the sector, the Supreme
Audit Office (NKÚ) says in its latest report.
The report analysed the distribution of over 500-600 million crowns allocated by the ministry in the years 2016 to 2018. It found there was no effective digital system in place to both centralise and track the flow of money.
The NKÚ also noted that nine different sections within the ministry allocated subsidies, each having their own regulations.
The result is a fragmented, overly complex system whereby, for example, an entity seeking support for a dance and theatre festival must submit two markedly different applications.
The Czech National Bank re-issued 30,000 sets of six 20-crown coins on
Wednesday to mark the centenary of monetary separation from the former
The six coins featuring famous First Republic politicians such as Tomáš Garrigue Masaryk and Edvard Beneš, as well as the first central bank governors, were first issued in 2018.
At that time, collectors could exchange them for coins of the same value. Now the cost for six coins has been set at CZK 590. Another 20,000 sets of the coins are due to go on sale this autumn.
The countercyclical capital buffer rate for exposures located in the Czech
Republic will increase to 2 percent as of July 1, 2020, the Czech National
Bank (ČNB) announced.
The rise was motivated by an increase in risks linked with the growth phase of the financial cycle of the Czech economy and partial strengthening of signals of vulnerability of the domestic banking sector, the central bank said.
The ČNB sets the rate on a quarterly basis, always with effect from the following year. In the event of a sudden turn in the financial cycle, the bank is ready to lower the rate or even enable a full dissolution of the buffer, central bank governor Jiří Rusnok said.
High energy expenditures are forcing nearly a quarter of Czechs to cut back on other types of spending, a recent survey conducted by the polling agency STEM revealed. However, other data shows that 68 percent of the population likes to rank up their heating to temperatures by up to 25 degrees, resulting in unnecessary costs.