CNB expresses conditional agreement to loan to IMF

At its meeting on 26 January 2012, the Bank Board of the Czech National Bank (CNB) expressed its agreement to the release of EUR 1.5 billion from its international reserves for a bilateral loan to the International Monetary Fund (IMF) on condition that the Parliament of the Czech Republic approves a state guarantee for the CNB’s potential losses.

Although the CNB advises the government against providing another loan to the IMF, the Bank Board when making its decision took into account the promise to issue a sound state guarantee.

The CNB Bank Board views the agreement of the Parliament of the Czech Republic to the government bill for a state guarantee of EUR 2.53 billion for the total amount of loans promised to the IMF as an expression of the Czech Republic’s foreign policy priorities.

Marek Petruš
CNB spokesman