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Carolina (English) No 216
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STUDENTS' E-MAIL NEWS FROM CZECH REPUBLIC
Faculty of Social Science of Charles University
Smetanovo nabr. 6
110 01 Prague 1
Czech Republic
e-mail: CAROLINA@cuni.cz
tel: (+42 2) 24810804, ext. 252, fax: (+42 2) 24810987
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
C A R O L I N A No 216, Friday, September 27, 1996.
FROM THE EVENTS OF THE PAST TWO WEEKS (September 12-25)
Havel in South America
Czech President Vaclav Havel has commenced a two-week trip to
Brazil, Chile, Uruguay and Argentina September 15. Among the members of
President's delegation is Vladimir Dlouhy, Minister of Industry and
Trade, and a group of the Czech entrepreneurs.
In Brazil Havel visited, among other sites, the village of Lidice,
which got its name from the Czech village burned to ruins by Nazis
during the Second World War as retribution for the assassination of
Reinhard Heydrich, Nazi head of the Czech protectorate. The local school
is named after the second president of Czechoslovakia, Edvard Benes. In
Rio de Janeiro the delegation was joined by Czech National Bank Governor
Josef Tosovsky.
In Chile, where the first agreement with any Latin American
country was signed on eliminating entry visas, Minister of Finance Ivan
Kocarnik also joined the delegation.
Agrobanka under Forced Administration of Czech National Bank
Forced administration was introduced September 17 in Agrobanka, the
fifth-largest bank in the Czech Republic. The decision was made by the
Bank Council of the central Czech National Bank (CNB) after a joint
session with the Czech cabinet on the night of September 16. This step
was taken shortly after Prime Minister Vaclav Klaus and CNB Governor
Josef Tosovsky publicly declared that the Czech banking sector is
healthy and safe.
The CNB provided a guarantee that all obligations of Agrobanka will
be met. The daily MF DNES highlighted the fact that since the 1992
process of dividing the former Czechoslovakia and meetings between Klaus
and Slovak Premier Vladimir Meciar, this was the first time cabinet
members have been in session the whole night. Causes of the forced
administration are interpreted differently: Agrobanka's cash-flow
problems, its inability to keep reserves at the prescribed level, or the
government intention to push out of Agrobanka the Motoinvest financial
group, which took control of the bank in 1995 and whose representative
on the bank's supervisory board is in jail in connection with the
Kreditni banka Plzen collapse (see Carolina 213, 215 and below).
Motoinvest might have owned about 15 per cent of Agrobanka and 20 per
cent of Czech Savings, one of the four largest financial institutions in
the Czech Republic, according to press reports.
Among the biggest clients of Agrobanka are the Fund of National
Property, General Health Insurance, the Farmer Aid Fund and the Land
Fund. Tosovsky said big Czech banks will deposit about 6 billion crowns
in Agrobanka to strengthen its liquidity.
Livia Savelkova
Klaus Meets Zeman on Banks
Prime Minister Vaclav Klaus and Parliament Chairman and leader of
the opposition Social Democrat Party Milos Zeman declared their common
intention to contribute to calming the public in the wake of recent
banking crises. They made their announcement after their September 17
meeting, which was initiated by the Prime Minister.
Klaus, who has opposed establishing a parliamentary investigative
commission before, changed his mind after this meeting, and voiced his
support for setting up a special commission for investigating the causes
of the collapse of Kreditni banka Plzen.
On September 19 Zeman and Christian Democratic Union-Czechoslovak
People's Party Chairman Josef Lux came to an agreement that the
parliamentary commission should be chaired by the representative of the
Social Democrats. Zeman would like to see a Social Democrat and former
Communist deputy Michal Kraus at the head of the commission. The process
for establishing the commission is to start at the October Parliament
session.
Police Investigation in Kreditni Banka Crash
Beside the news on the Czech National Bank's forced administration
of Agrobanka (see above), the police investigation in the Kreditni banka
Plzen case was the dominant media event of the last two weeks.
The press reported September 14 about the first arrests and legal
charges posed against several persons suspected of embezzlement and
damaging creditors in the case. The criminal activity of the charged
persons may deprive bank clients and creditors of about 3 billion crowns
and could be punished by sentences ranging from 5 years to 12 years in
prison. Two of six charged are former high-level managers of the bank,
while another two are leading members in the Motoinvest financial group.
Pavel Tykac, president of Motoinvest, fled the country September
17 after declaring at a press conference the innocence of his employees
and making hints about the true culprits in the bank crash. One day
later, he surprisingly returned to Prague and stated that his company
will soon leave the banking sector in the Czech Republic.
Livie Savelkova
Milos Zeman Asks for Finance Minister's Head
The Executive Council of the Civic Democratic Party (ODS) declared,
after its weekend meeting (September 21-22) in Loucen, unanimous
definitive backing for Minister of Finance Ivan Kocarnik, attacked by
Social Democrat Chairman Milos Zeman, who asked for Kocarnik's
resignation.
Zeman put the blame on Kocarnik for not preventing the loss of
about 2 billion crowns deposited by the Czech Customs Administration in
the collapsed Kreditni banka Plzen, not to speak of general
responsibility for the banking sector.
The September 23 issue of the daily Pravo quoted Prime Minister and
ODS Chairman Vaclav Klaus, saying the Council "rejected the politically
motivated attacks on Minister Ivan Kocarnik." The Council entrusted the
Minister of Finance with drawing up amendments which should enable more
strict control in banks and on the capital market.
Actual responsibility is - according to the ODS - on the side of
the inspectors of the Czech National Bank. However, the removal of the
CNB governor Josef Tosovsky has not been discussed, as Klaus was cited
in Pravo. Kocarnik said the top management and organs of the Czech
National Bank are politically unrecallable and they possess exclusive
jurisdiction over bank supervision.
Livia Savelkova, Arsen Kocarjan
ODS and CSSD Election Preferences Even
The Social Democrats (CSSD) surpassed for the first time the
strongest government party, the Civic Democratic Party (ODS), in the
voter-preference opinion poll conducted by the Center for Empirical
Research (STEM) even though the difference is minimal and in the range
of "statistical error" (CSSD 26.3 per cent, ODS 26.2 per cent).
According to another agency, the Public Opinion Research Institute
(IVVM), ODS still maintains its leading position (ODS 25 per cent, CSSD
24 per cent). Both institutes did the research in the first half of
September, before the bank bankrupcty scandal emerged.
The Czech press, which published the above-mentioned results (STEM
research September 20, IVVM research September 23) noted the statistical
error in such opinion polls is about 2 per cent.
Both studies registered the decline of election preferences for the
neo-fascist Republican party, which fell under the 5 per cent limit
necessary for entry into Parliament.
Senat Election - ODS Wants to Expel Members on Independent Ballots
The very first Senate election in the Czech Republic will take
place November 15-16. Unlike the recent Parliament election (May 31
- June 1) with its proportional system in 8 election regions, the Senate
election will use the majority system in 81 district constituencies.
The Civic Democratic Party (ODS) Executive Council called for the
expulsion of several ODS members on independent ballots thus competing
with nominees on the official ODS ballots. One of the independents is
Ludek Rubas, co-founder of the ODS and former Minister of Health.
The neo-fascist Republicans are the only of the six parties in
Parliament not running for Senate seats because of their opposition to
the upper house's existence.
Czechs Lead the Europe Statistic in Beer Consumption
The Czech Republic, with a consumption of 159 liters per
inhabitant per year, places at the top of Europe beer drinking
statistics, the Czech press reported September 16. Data refer to the
year 1995 and were published by the Confederation of EU Breweries.
According to this source, Germans are second best, with 138 liters per
capita, and Danes place third with 124 liters of beer per capita. At the
bottom of the table are the French, with a consumption of 39 liters per
capita, and Italians, with 25 liters per person per year.
FROM SLOVAKIA
Klaus and Meciar Met at the CEFTA Meeting
Vaclav Klaus and Vladimir Meciar, executive leaders of the Czech
and Slovak Republics, declared their interest in maintaining a common
customs union, and in intensifying relations, during the course of their
meeting at the summit of CEFTA (Central European Free Trade Agreement)
held in Jasna in the Low Tatra Mountains September 13.
Meciar complained about Czech media, which, according to him, have
been running an anti-Slovak campaign. Klaus rejected the complaint,
explaining that the Czech government has no possibility to influence the
content of the free media. Klaus also rejected Meciar's proposal to end
definitively the process of federal property division.
ECONOMY
Cabinet Approves 1997 State Budget
The final draft of the 1997 state budget was approved September 18
by the Czech government. The Czech state budget plans for an even
balance of incomes and expenditures at 549.1 billion crowns.
Exchange Rates at the Czech National Bank
(valid from September 27)
country currency
------------------------------------------
Australia 1 AUD 21.355
Belgium 100 BEF 86.179
Great Britain 1 GBP 42.037
Denmark 1 DKK 4.621
Finland 1 FIM 5.916
France 1 FRF 5.250
Ireland 1 IEP 43.198
Italy 1000 ITL 17.760
Japan 100 JPY 24.373
Canada 1 CAD 19.719
Luxemburg 100 LUF 86.179
Netherlands 1 NLG 15.826
Norway 1 NOK 4.161
New Zealand 1 NZD 18.909
Portugal 100 PTE 17.454
Austria 1 ATS 2.524
Greece 100 GRD 11.273
Slovakia 100 SKK 87.391
Germany 1 DEM 17.748
Spain 100 ESP 21.119
Sweden 1 SEK 4.071
Switzerland 1 CHF 21.676
USA 1 USD 26.965
ECU 1 XEU 33.940
SDR 1 XDR 39.068
CULTURE
Prague's German Theater Festival
Great shows performed by excellent German-speaking theater
companies are being held in the Vinohrady Theater between September
13-28. At the opening host-company performance (The Old Lady's Visit by
Friedrich Durrenmatt) were present the presidents of the Czech Republic
and Germany - Vaclav Havel and Roman Herzog. Participating companies
include Wien Burgtheater, Berlin Deutsches Theater, Hamburg Thalia
Theater, Munchner Kammerspiele and Zurich Schauspielhaus.
According to organizers, the festival should be maintaining
Prague's multicultural traditions from the times before the Second World
War and also be an encouraging sign of new European cultural
coexistence.
To Be an Actor at a Private School
Until recently the only possibility to study acting was to get
accepted to a public acting conservatory at the high school level, or,
on the university level, to the public Theater Academy of Musical Arts
in Prague or the public Janacek Academy of Musical Arts in Brno. But now
there have been four private schools opened, which aim to bring up new
generations of actors. Three of them are located in Moravia, while one
has functioned for about two years in Prague. Its principal, theater
journalist and historian Vera Kmochova, is leading a staff including
famous names from Czech theater and film history: actors Petr Kostka,
Libuse Svormova, Eliska Balzerova, Oldrich Vizner or theater director
Pavel Krobot.
The nearly 60 students there do not dedicate themselves for three
years only to the stage but also to learning public speaking and radio
broadcasting. After successful entrance exams (talent and psychology)
they attend movement, theater history and aesthetic courses, among
others. They learn to work with a microphone and the proper usage of the
Czech language, often abused by announcers and actors.
Annual tuition is 23,000 crowns (1995 average monthly salary in the
Czech Republic was 8,400 crowns).
Zora Kasikova
Muzika - an International Music Trade Fair
The second annual international trade fair named Muzika took place
in Prague's Vystaviste Fairgrounds between September 19-22. It was
organized by Incheba Praha and the Muzikus publishing house. There were
a majority of stands presenting foreign music instruments, studio and PA
equipment imported to the Czech Republic. Visitors could also see Czech
nusic instrument production from Petrof (pianos) or Varhany Krnov (organ
factory). One stand was offering any music scores to buy or to order,
another ones were offering wide choice of CD's.
Many other events, such as presentations, seminars and concerts
were put on too. The program was really rich - 27 concerts, two of them
taking place at popular rock clubs - Akropolis and Rock Cafe.
The trade fair seemed modest. The instrument and music market in
the Czech Republic does not reach the level of computer or cosmetics
sales. The biggest trade fair of this kind is annually organized in
Frankfurt. On several floors of the Musikmesse Frankfurt exhibition
premises the hottest music technology news is introduced.
Jaromir Vicari
SPORT
Qualification for World Cup in France 1998 Begins
The Czech national soccer team won the first World Cup
qualification game against Malta 6-0 in Teplice September 18. Goals
scored: Patrik Berger 2, Pavel Nedved, Lubos Kubik, Vladimir Smicer and
Martin Frydek.
The Slovak national soccer team, which played Malta September 22,
achieved the same 6-0 result.
SPORT IN BRIEF
* The Czech Davis Cup team was defeated by Sweden in Prague September
20-22 by a final match result of 4-1.
* Slavia Praha advanced into the next round of the UEFA Cup after
victory in the return match with the Swedish soccer team Malmo FF 3-1 in
Prague September 24.
* Sparta Praha advanced the next round of the European Cup Winners
Cup when playing Austrian Sturm Graz 1-1 in Prague September 26. The
first match in Austria resulted also in a draw 2-2.
* The Soccer League finished its 6th round. On the top of the
standings is Boby Brno. Result of Slavia Praha - Sparta Praha match:
1-1.
* Kladno and Pardubice are on the top of the standings (7 points
apiece and undefeated) after the 4th round of the Hockey Extraleague.
The last-place Jihlava hockey team has not scored a point in four
matches.
WEATHER
Indian Summer is still a dream. The mid-September temperatures are
fluctuating around the 10 degrees Celsius/50 degrees Fahrenheit level.
Dark, cloudy, rainy weather, people in winter jackets making the
impression of November in Prague.
Czech version edited by Lida Truneckova (author of all not signed
stories).
Translation by Katerina Zachovalova, Milan Smid, Michael Bluhm.
English version edited by Michael Bluhm.
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