CZECH REP.: Insurers and pensions companies will not pay dividend from last year's profits in order to strenghten their financial stability

1 April 2020 — Andrei Victor
The impact of the coronavirus pandemic dramatically changes the current outlooks for the global and Czech economy. Thus, for its March monetary policy meeting, the CNB Bank Board had at its disposal an extraordinary internal update of the macroeconomic forecast, which served as a basis for its last decisions.

Thus, due to the high uncertainty regarding future economic developments, the CNB also expects in the current situation that not only credit institutions, but also "insurance companies and pension management companies will refrain from making any dividend payouts or taking any other steps that might jeopardise individual institutions' resilience".

"This should happen with immediate effect and last until both the acute and longer-term consequences of the novel coronavirus pandemic fade away".

Click here to read the statement of the Bank Board for the press conference following the monetary policy meeting.

Click here to read the Transcript of the questions and answers from the press conference.

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