Czech ECA subsidized by Finance Ministry

(Prague Daily Monitor, Prague, 28 April 2014) Czech Export Guarantee and Insurance Company (EGAP) received a subsidy of Kc1bn (US$50.5 million) a year from the Finance Ministry in 2011 and 2012 despite having enough own funds, according to findings by the Supreme Audit Office (NKU)... "At that time, EGAP had enough own resources and did not need money from the state budget to top up its insurance funds," NKU said... EGAP said the decision about the form and amount of the state's subsidy to export is a decision made by the government, and is therefore a purely political decision. [Editors note: The article made no mention of Czech adherence to the WTO Agreement on Subsidies and Countervailing Measures which prohibits ECA premiums that are not inadequate to cover long-term operating costs and losses.]