The Czech Republic is facing the sale of strategic shares owned by the state in banks, distribution companies, and key companies. Transaction of the year 1997 was the sale of Opatovice power plants - this transaction represented not only benefit for a group of sellers, but also for the largest towns in the East part of the Czech Republic.

As this case demonstrated that also in the Czech Republic it is possible to prepare a standard sale of a company and that in such case the investor is willing to pay the requested price. The number of registered inquiries of foreign investors about direct investments was lagging behind last year by one half when compared to the previous year. In the first half of 1998 the direct investments in CR represented USD 40 mil., one year before that it was more than USD 80 mil..

However, a favorable turning point was after the government executive announced investment concessions. Influx of investments into CR according to experts will be promoted mainly by privatization of the banking sector. So this year there is a hope that there could be a further influx of foreign investments - after the investors assess the success of the new, but realistically existing advantages. Foreign investors consider for attractive mainly those towns, which have industrial zones. These are for example: Plzen and Pardubice. They compete for the favor of Intel company, which has a condition that the trip from the factory to the airport should not be longer than 2 hours. Both towns have qualified labor in the field of electric technology. Or another one is Mohelnice in Sumperk district (apprentice school focusing on education of workers for Intel). According to experts also Karvina is becoming an attractive town. Producers of spare parts for the automobile industry are interested in this town because of the vicinity of Gliwice, where General Motors operates.

Slovak Trade FORUM