Czech National Bank approves 1.5 billion euro loan to IMF

The board of the Czech National Bank on Thursday approved a 1.5 billion-euro loan to the IMF as part of the EU’s efforts to contain the debt crisis in the euro zone, according to a report by Czech Television. The board made it clear that it would release the funds only on the condition that the Czech Parliament approves government guarantees for the loan, part of a 200 billion euro package to rescue the single European currency.

In December, EU leaders agreed to lend 200 billion euros to the International Monetary Fund in an attempt to ward off the bloc’s debt crisis. The EU asked the Czech Republic to contribute some 3.5 billion euros to the loan; an amount deemed too high by the country’s cabinet.

Author: Sarah Borufka