The National Development Bank (NRB) helped to finance 4,077 business projects last year with the total amount reaching CZK 24 billion (EUR 1bn). As compared with the year 2021 it is three times more, excluding specific covid programmes, most of which terminated at the end of 2021. Assisting the business sector through directly provided or guaranteed loans approached CZK 22.5 billion (EUR 0.9bn). Another CZK 232 million (EUR 10m) were provided to travel agencies in the form of a guarantee to obtain compulsory insolvency protection insurance.

The VODA Želivka Company is the largest producer of drinking water in the Czech Republic, ensuring supplies also to the Capital City of Prague. The NRB granted the company with CZK 600 million credit line to support long-term investments in water management infrastructure.

Financial instruments such as guarantees, loans or capital inputs are a modern way of supporting economically viable projects. They are usually considered to be an efficient tool for supporting the investments of the private sector. However, financial instruments are relevant also for the investments of regions, cities, municipalities or public utility companies. The National Development Bank (NRB CZ), which acts as the Czech promotional bank and the knowledge centre for financial instruments, contributes to the economic and sustainable development of the country, inter alia by offering soft loans to the public sector.

The National Development Bank (NRB) and the Council of Europe Development Bank (CEB) signed a framework loan agreement worth EUR 50 million. Thus, it has secured additional resources to finance infrastructure projects aimed at improving the environment and living conditions in urban as well as in rural areas. The funds are dedicated for the public sector as well as for enterprises or mixed entities.

The Czech-Moravian Guarantee and Development Bank (ČMZRB) and the Railway Infrastructure Manager (Správa železnic, hereinafter “RIM”) signed a Memorandum of Understanding in order to identify and prepare railway infrastructure projects. Railway connection between the Václav Havel Airport and the city centre was chosen as a pilot project to be realized under this memorandum.

The Czech-Moravian Guarantee and Development Bank (ČMZRB) signed two memoranda on cooperation as part of an effort to increase its involvement in public infrastructure financing. In December 2020, the bank signed a memorandum with the City of Pardubice, which is the capital of the Pardubice Region and one of the main regional centres in Eastern Bohemia. In January 2021, the bank signed a memorandum with the Moravian-Silesian Region, which is located in the north-eastern part of the Czech Republic.

The Czech National Bank issued a licence for the National Development Fund SICAV (“NDF”). This will enable the participation of private capital on infrastructure financing in the Czech Republic. Board of Directors of NDF together with potential private investors have already started to identify and assess potential infrastructure projects for financing. Beside the Czech-Moravian Guarantee and Development Bank (ČMZRB), four commercial banks as private investors joined this initiative: Česká spořitelna, Komerční banka, Československá obchodní banka and UniCredit Bank Czech Republic and Slovakia. Other private investors can join NDF in future.