Audit: Czech Export Bank provided billions in unjustified loans

16-07-2012

The Czech Export Bank provided 8.2 billion crowns, the equivalent of nearly 400 million US dollars, in unjustified loans, according to a review released on Monday by the country’s supreme audit authority. The auditors found that around half of that sum was in fact provided in breach of Czech law, while more than 13 percent of the 143 billion crowns the bank gave out between 2005 and 2011 to support Czech exporters was sent to only two companies. One of the recipients paid over 40 percent of the sum to an off-shore firm which, the auditors said, cast serious doubt over whether the move can be considered support of Czech exports. Some of the loans were also given without being reviewed by the bank’s supervisory board, the report said.