Economic policy

This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.

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Spotlight issue

26th March 2019 / Economic policy / Tax & Finance

New mortgage limits in the Czech Republic

Recommendations of the Czech National Bank The continuing increase in the number of bank loans provided in the Czech Republic has drawn the attention of the Czech National Bank (CNB), the regulatory body obliged to maintain and support financial stability. The CNB has therefore published a number of recommended industry guidelines regarding mortgage lending conditions. In particular, lending limits have been suggested relating to loan-to-value ratios (LTV); debt-to-income ratios (DTI); and debt service-to-income ratios (DSTI). In the opinion of the CNB, these limits need to be observed in order to minimise risks connected with the growing economic market. In 2015, CNB issued its first recommendation on managing the risks associated with providing retail secured residential property loans. This was aimed at preventing risks associated with the residential property market by setting LTV limits. In 2016 and 2017, the CNB continued to tighten LTV limits; DTI and DSTI levels were also introduced.

26th March 2019 / Economic policy / Macroeconomic Indicators, Economic Growth

CNB to postpone hike amid Brexit chaos

While a strong domestic economic performance calls for a hike in March, the uncertainty surrounding the external environment is likely to prevail, leaving the CNB board in wait-and-see mode. We still believe the CNB will deliver two hikes this year, but we will have to wait for the Brexit situation to calm down and for stronger signals regarding a recovery in Germany.

16th March 2019 / Economic policy / Health Care

MP Jiři Běhounek met AmCham Health Care Council to discuss possible improvements of health care system quality

AmCham Health Care council met with another member of parliamentary health care committee (ČSSD) Jiří Běhounek this week to continue discussion on the state of Czech health care system and improvement of the quality of disease registries through quality system of digitalization, and an emphasis on the quality criteria in procurement.