 Consolidation of communist bad loans through state-operated institutions in the Czech Republic, 1990-2013Aleš Rod Post-Communist Economies, 2015, vol. 27, issue 3, 411-427 Abstract: This article deals with the 'old bad loans' problem in the Czech Republic. The issue with classified loans provided by the socialist monobank State Bank of Czechoslovakia before 1989 had been solved through special consolidation institutions operated by the government in the 1990s and 2000s. The topic seems to be quite historical but infact the opposite is true - the state's involvement in the process of consolidation of bad loans created good conditions for rent seekers, whose efforts led to out-of-court remuneration, i.e. additional costs of consolidation for Czech public finances in 2013. The article consists of a broad analysis of the Czech way of bad loan consolidation using information from financial statements and reports of consolidation institutions, and a calculation of returns from individual and block sales of receivables. The calculations show individual sales had higher return ratios than block sales, while the average return to nominal value was under 20%. A comparison with the different Slovak approach to the problem is also included. Date: 2015 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:pocoec:v:27:y:2015:i:3:p:411-427 Ordering information: This journal article can be ordered from DOI: 10.1080/14631377.2015.1055984 Access Statistics for this article Post-Communist Economies is currently edited by Roger Clarke More articles in Post-Communist Economies from Taylor & Francis Journals |
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