Pragobanka, a. s.

At its meeting today, the CNB Board assessed the financial situation of Pragobanka, a.s. (PGBA), including its fulfilment of the stabilisation programme as of 30.6. 1998. The Board stated that serious shortcomings still existed in PGBA´s activities and had resulted in a severe deterioration of its financial indicators. The Board therefore decided to initiate administrative proceedings with respect to revoking PGBA´s banking licence.

At the same time, the Board stated that PGBA was not fulfilling the stabilisation programme´s binding indicators and that no sufficient guarantees existed concerning the fulfilment of the programme´s targets. The Board therefore decided to exclude PGBA from the stabilisation programme.

CNB - M. Švehla