US embassy cable - 05PRAGUE68

UNCLAS SECTION 01 OF 07 PRAGUE 000068 
 
SIPDIS 
 
STATE FOR EUR/NCE AND EB/IFD/OIA 
STATE PASS USTR FOR LERRION 
COMMERCE FOR 4232/ITA/MAC/MROGERS 
 
E.O. 12958: N/A 
TAGS: EINV, KTDB, EZ, OPIC, USTR 
SUBJECT:  CZECH REPUBLIC: 2005 INVESTMENT CLIMATE STATEMENT 
 
REF: STATE 250356 
 
1.  Post's updated investment climate statement for 2005 
follows para 2. 
 
2. THE INVESTMENT CLIMATE 
 
Maintaining an open investment climate has been a key 
element of the Czech Republic's transition from a Communist, 
centrally planned economy to a functioning market economy. 
The Czech Republic's stable political and economic 
environment, its location on the doorstep of the European 
Union, its low cost structure and its well-qualified labor 
force make it an attractive destination for foreign 
investment.  Prior to its accession to the European Union on 
May 1, 2004, the Czech government harmonized its laws and 
regulations with those of the European Union. The Czech 
economy has experienced moderate growth in the past few 
years.  A rising government budget deficit could put 
continued growth at risk in the medium to long term, 
particularly if the current strong direct foreign investment 
flows slow down and European demand remains weak.  The Czech 
government offers attractive incentives for foreign direct 
investment.  Legally, foreign and domestic investors are 
treated equally.  Enforcement of intellectual property 
rights is improving.  According to U.S. Embassy 
calculations, the U.S. is currently the third largest 
investor in the Czech Republic, behind Germany and the 
Netherlands. 
 
Openness to Foreign Investment 
 
For several years, the Czech Republic has received more 
foreign direct investment (FDI) per capita than any other 
country of the former Soviet bloc. Gross Domestic Product 
(GDP) has been growing recently (2.9% in 2003, and an 
estimated 3-4% in 2004), based largely on significant 
inflows of foreign investment and growing consumer demand 
supported in part by rising wages influenced by that 
investment.  Foreign investment is boosting productivity, 
creating new jobs and raising wages and domestic 
consumption.  It is also contributing to a trend of 
appreciation in the value of the Czech currency, the crown. 
This phenomenon is helping to keep inflation low (0.1% in 
2003, about 3.5% in 2004), but somewhat reduces the 
competitiveness of Czech exports.  Some unfinished elements 
in the transition, such as slow and uneven enforcement of 
contracts by the Czech courts, have adversely affected 
investment, competitiveness, and company restructuring. 
 
There have been numerous major U.S.  investments since 1990, 
and many American firms are looking closely at investing 
directly into the Czech Republic.  The government has 
harmonized most relevant laws with EU legislation and the so- 
called "acquis communautaire".  This effort has involved 
positive reforms of the judicial system, civil 
administration, financial markets regulation, intellectual 
property rights protection, and many other areas important 
to investors.  While there have been many success stories, a 
handful of investors have experienced problems, mainly in 
heavily regulated sectors of the economy such as the media 
and in enterprises where the state is a partner.  Investors 
also complain about difficulties in enforcing contractual 
rights, including security interests.  The slow pace of the 
court system is often compounded by judges' lack of 
familiarity with commercial cases.  Needed reforms of the 
system for registering companies and the bankruptcy laws 
have been slow in coming.  Concerns about corruption have 
been voiced by foreign and domestic businesses alike. 
 
Organizational Structure of Investments 
 
Foreign investors can, as individuals or business entities, 
establish sole proprietorships, joint ventures, and branch 
offices in the Czech Republic.  In addition, the government 
recognizes joint-stock companies, limited liability 
companies, general commercial partnerships, limited 
commercial partnerships, partnerships limited by shares, and 
associations.  The government imposes a Czech language 
requirement for issuance of the trade licenses needed for 
most forms of business.  The requirement has been waived for 
citizens of EU countries, and under the terms of the U.S.- 
Czech bilateral investment treaty should be waived for U.S. 
citizens as well. 
 
National Treatment 
 
Legally, foreign and domestic investors are treated 
identically.  Both are subject to the same tax codes and 
laws.  The government does not differentiate between foreign 
investors from different countries, and does not screen 
foreign investment projects other than in the banking, 
insurance and defense sectors.  Upon accession to the OECD, 
the Czech government agreed to meet (with a small number of 
exceptions) the OECD standards for equal treatment of 
foreign and domestic investors and limitations on special 
investment incentives.  The U.S.-Czech Bilateral Investment 
Treaty contains specific guarantees of National Treatment 
and Most Favored Nation treatment for U.S. investors in all 
areas of the economy other than insurance and real estate. 
(See the section on the Bilateral Investment Treaty below) 
 
Exempted Sectors 
 
According to CzechInvest, the Czech agency tasked with 
attracting and facilitating FDI, all sectors of the Czech 
economy are open to foreign investment.  Investors in 
banking, financial services, insurance and broadcast media 
sectors must meet certain licensing requirements.  Some 
professions, such as architects, physicians, lawyers and tax 
advisors, require memberships in the appropriate 
professional chamber.  These licensing and membership 
requirements apply equally to foreign and domestic 
investors. 
 
Privatization 
 
More than eighty percent of the Czech economy is now in 
private hands after several waves of privatization of 
formerly state-owned companies since 1989.  Privatization 
programs have been open to foreign investors.  In fact, most 
major state-owned companies have been privatized with 
foreign participation.  The government evaluates all 
investment offers for state enterprises.  Non-transparent 
and unfair practices have been alleged in connection with 
some recent privatizations. 
 
Conversion and Transfer Policies 
 
The Czech crown is fully convertible for business purposes, 
including all trade transactions and investment transactions 
with one limitation: non-resident foreign individuals and 
companies without registered offices in the Czech Republic 
cannot purchase real estate.  Imports or exports of more 
than 350,000 Czech crowns in cash, travelers' checks or 
money orders must be declared at the border. 
 
The U.S.-Czech Bilateral Investment Treaty guarantees 
repatriation of earnings from U.S. investments.  A 15% 
withholding tax is charged on repatriation of profits from 
the Czech Republic.  This tax is reduced under the terms of 
applicable double taxation treaties.  For instance, under 
the U.S. treaty, the rate is 5% if the U.S. qualifying 
shareholder is a company controlling more than 10% of the 
Czech entity, and 15% otherwise.  There are no 
administrative obstacles for removing capital.  The law 
permits convertibility into any currency.  The average delay 
for remitting investment returns meets the international 
standard of three working days. 
 
Expropriation and Compensation 
 
The Embassy is unaware of any expropriation of foreign 
investment since 1989.  Acquisition of property by the 
government is now only for public purposes (similar to 
property condemnation in the United States for public works 
projects) in a non-discriminatory manner, and in full 
compliance with international law.  It is unlikely that any 
investor losing property due to a governmental taking would 
not receive full compensation. 
 
Another issue of concern to foreign investors in the Czech 
Republic is restitution.  In 1990 and 1991, the federal 
government of Czechoslovakia enacted various laws aimed at 
compensating those people whose property was confiscated by 
the communist regime during the period of 1948-1989.  Under 
the restitution laws, persons have the right to claim 
compensation for property taken from them by the communist 
government.  Most claims for restitution of non-agricultural 
property had to be filed by October 31, 1991, and 
agricultural property by December 1992.  There were 
additional open seasons for claims in 1994 and 1998 
respectively but all deadlines for these claims expired on 
July 8, 1999.  In 2000, however, a new Law to Alleviate Some 
of the Property Damages Caused by the Holocaust entered into 
force.  It amends the restitution laws allowing the state, 
subject to certain conditions, to return communal Jewish 
property, works of art and land illegally seized by the 
Nazis to entitled Jewish communities and individuals. 
 
Although deadlines for submitting restitution claims are now 
past, it is nevertheless important that foreigners seeking 
to invest in the Czech Republic first ensure that they have 
clear title to all land and property associated with 
potential projects.  The process of tracing the history of 
property and land acquisition can be complex and time- 
consuming, but it is necessary to ensure clear title.  Title 
insurance is not yet offered in the Czech Republic. 
Investors participating in privatization of state-owned 
companies are protected from restitution claims through a 
binding contract signed with the government. 
 
Dispute Settlement 
 
The Czech Republic has a commercial code and a civil code 
that are largely based on the German legal system.  The 
commercial code details rules pertaining to legal entities 
and is analogous to corporate law in the United States.  The 
civil code deals primarily with contractual relationships 
among parties.  When the Czech Republic was formed in 1993, 
the new Czech government maintained the previous commercial 
and civil codes.  The laws have been extensively amended 
since then, but gray areas still remain.  The judiciary is 
independent, but decisions may vary from court to court. 
Commercial disputes, particularly those related to 
bankruptcy proceedings, can drag on for years.  Companies 
registration is in the hands of the courts and is sometimes 
slow and overly complicated. 
 
The need for an improved bankruptcy law remains an important 
structural impediment. Most observers believe the slow and 
uneven performance of the courts and weakness of creditors' 
legal standing is an impediment to increased lending to 
small and medium enterprises.  The law also lacks provisions 
for corporate restructuring.  The Ministry of Justice has 
identified bankruptcy reform as a priority and appointed a 
commission to draft a completely new, effective bankruptcy 
law.  Progress has been slow and competing versions of the 
law are now under consideration. 
 
The Czech Republic ratified the Convention on the Settlement 
of Investment Disputes between States and Nationals of Other 
States in 1993. The U.S.-Czech Bilateral Investment Treaty 
provides for international arbitration of investment 
disputes with the state. The Czech Republic has also 
ratified the New York Convention on the Recognition and 
Enforcement of Arbitral Awards. As a signatory of the latter 
convention, it is required to uphold binding arbitration 
awards in disputes between Czech and foreign parties. 
However, arbitration of disputes between two Czech 
corporations outside the Czech Republic is not permitted, 
even if the owners are foreign. Applications for enforcement 
of foreign judgments can be made to the Czech courts and 
will be determined in accordance with a bilateral 
recognition treaty, if any, or otherwise pursuant to the 
requirements of Czech law. Judgments rendered in other EU 
countries are enforceable in accordance with applicable EU 
regulations. 
 
Investment Incentives 
 
In 1998 the Czech government approved a package of 
incentives to attract investment. The incentives are offered 
to foreign and domestic firms that make a $10 million 
manufacturing investment through a newly registered company. 
The package includes relief from corporate taxes for up to 
ten years, job-creation grants, re-training grants and 
opportunities to obtain low-cost land. A tax incentive is 
also available for expansion of an existing manufacturing 
investment. Subsidies are offered for services centers for 
software development, customer service and repairs. More 
recently, subsidies to attract high technology and research 
and development centers have been added. Tax deductions for 
new machinery, real estate tax relief, job creation grants, 
re-training grants, simplified customs procedures and duty- 
free import of machinery are also available under certain 
conditions to qualified companies. The incentives were 
developed with the assistance of the EU in order to ensure 
their compatibility with EU rules on industrial subsidies. 
Therefore, there has been no change to the incentive program 
as a result of the Czech Republic's accession to the 
European Union. 
 
The Czech Republic is in compliance with WTO TRIMs 
requirements. There are currently no general performance 
requirements imposed on foreign firms for establishing, 
maintaining, or expanding their investments, except in 
connection with the incentives described above. These 
performance requirements generally relate to the amount of 
investment or hiring of employees if special job-creation 
grants are received with the incentive package. For more 
information contact CzechInvest, Director Mr. Radomil Novak, 
phone: 420-296 342 501, fax: 420-296 342 502, address: 
Stepanska 15, 120 00 Praha 2, Czech Republic, 
marketing@czechinvest.org, www.czechinvest.org. Special 
performance requirements are negotiable. 
 
Foreign workers in the Czech Republic must obtain permits 
and visas in advance of their taking up employment and 
residence.  The process of obtaining the required permits 
can be time-consuming. 
 
Right to Private Ownership and Establishment 
 
The right of foreign and domestic private entities to 
establish and own business enterprises is guaranteed by law 
in the Czech Republic. Enterprises are permitted to engage 
in any legal activity with the previously noted limitations 
in some sensitive sectors. Personal ownership of real estate 
by non-resident foreign individuals is not permitted, but 
since January 1, 2002, foreign companies registered to do 
business in the Czech Republic and Czech branches of foreign 
entities may own real estate, other than agricultural and 
forest land. Since May 1, 2004, EU, U.S. and some other 
nationals can purchase real property if they comply with 
temporary residence requirements.  Czech legal entities, 
including 100% foreign-owned subsidiaries, may own real 
estate without any limitations. 
 
Protection of Property Rights 
 
Existing legislation guarantees protection of all forms of 
property rights, both intellectual and physical. Secured 
interests in land (mortgages) and in personal property are 
permitted. Government subsidy programs are making mortgage 
financing more accessible, and consumers are becoming more 
used to using both secured and unsecured forms of credit. 
According to U.S. lawyers in the Czech Republic, enforcing 
judgments and foreclosing security interests in land and 
personal property can still be difficult in practice. 
 
Major amendments to the Commercial Code came into force in 
2001 that strengthen protection of creditors and minority 
shareholders. The law includes detailed provisions for 
mergers and places time limits on decisions by the 
authorities on registering of companies. New laws on 
auditing and on accounting were also enacted. These laws 
include the use of international accounting standards (IAS) 
for consolidated corporate groups. 
 
The Czech Republic is a signatory to the Bern, Paris, and 
Universal Copyright Conventions. In 2001, the government 
ratified the WIPO Copyright Treaty and the WIPO Treaty on 
Performances and Phonograms. Domestic legislation protects 
all intellectual property rights, including patents, 
copyrights, trademarks, and semiconductor chip layout 
design. Amendments to the trademark law and the copyright 
law have brought Czech law into compliance with relevant EU 
directives and WTO TRIPs requirements. Changes to the civil 
procedure code, effective January 1, 2001, provide for ex 
parte search and seizure in enforcement actions. The Czech 
Republic increased copyright protection for literary works 
from 50 to 70 years, effective December 1, 2000, and boosted 
the powers of the customs service and the Czech Commercial 
Inspection to seize counterfeit goods. The Embassy continues 
to work with U.S. industry and Czech government officials to 
further improve enforcement of intellectual property rights. 
 
Transparency of the Regulatory System 
 
Tax, labor, environment, health and safety, and other laws 
generally do not distort or impede investment. Policy 
frameworks are consistent with a market economy. All laws 
and regulations are published before they enter into force. 
Opportunities for prior consultation on pending regulations 
exist, and all interested parties, including foreign 
entities, can participate. A biannual governmental plan of 
legislative and non-legislative work is available on the 
Internet, along with information on draft laws and 
regulations (often only in Czech language). Comments can be 
and are made by business associations, consumer groups and 
other non-governmental organizations, including the American 
Chamber of Commerce. 
However, bureaucracy and unnecessary red tape remain a 
source of complaints by both domestic and foreign investors. 
Delays and allegations of corruption are common, especially 
in the process of registering companies and changes to 
corporate structure, and are of particular concern to 
foreign companies operating in the Czech Republic. 
 
In content and principle, Czech competition policy meets 
OECD standards. A new Act on the Protection of Economic 
Competition entered into force in 2001, adopting rules 
consistent with EU competition policy as regards restrictive 
agreements, abuse of dominant position and merger control. 
 
Efficient Capital Markets and Portfolio Investments 
 
The government privatized the last state-owned bank in 2001 
and foreign-controlled banks now manage 90% of total banking 
assets. The banking sector has recovered from the 1998-99 
recession, the poor payment discipline of many of the banks' 
clients, and non-competitive loans offered in the early 
1990s. Stricter oversight by the central bank has been 
imposed. Commercial banks have returned to profitability 
after posting losses in 1999. As of April 1, 2004, the total 
assets of commercial banks stood at $14.1 billion. As of the 
same date, non-performing loans amounted to 11.2% of total 
credit volume, compared to 28.8% in 2000. This figure does 
not include non-performing loans (with a face value of $5.5 
billion as of March 31, 2003) transferred to the Czech 
Consolidation Agency, which is charged with liquidating 
them. Foreign investors have access to bank credit on the 
local market, and credit is generally allocated on market 
terms. In 2002, the banks for the first time established a 
mechanism for sharing credit histories of borrowers. 
 
The Czech securities market is still handicapped by a poor 
reputation generated by several years of lax regulation, 
fraud and scandals. Market capitalization of equities traded 
on the Prague Stock Exchange was 27.0% of GDP in 2003. Only 
a handful of stocks are actively traded.  The first 
successful initial public offering of a company's shares 
since the stock market opened in 1992 took place in 2004. In 
1998 the government created a Securities and Exchange 
Commission to function as capital market watchdog. The 
Commission has made important strides in establishing a 
regulatory framework for Czech capital markets and enforcing 
new rules. It has employed a large number of new staff. A 
new securities law was adopted in 2001 to improve regulation 
of brokers and dealers. Legislation adopted in 2002 gives 
the SEC more flexibility in issuing guidelines and requiring 
reporting of information. 
 
Political Violence 
 
The risk of political violence in the Czech Republic is 
extremely low. The Czech lands have never had a history of 
political violence or terrorism in modern times. Two recent 
historic political changes -- the "Velvet Revolution" which 
ended the Communist era in 1989 and the division of 
Czechoslovakia into the Czech Republic and Slovakia in 1993 
-- occurred without loss of life or significant violence. 
 
Corruption 
 
Current law makes both giving and receiving bribes criminal 
acts, regardless of the actor's nationality. Jail sentences 
have been increased to up to eight years for officials, with 
stiffer penalties for bribery previously enacted by 
Parliament. Bribes cannot be deducted from taxes. Law 
enforcement authorities are responsible for combating 
corruption. These laws are applied equally to Czech and 
foreign investors. The Czech Republic ratified the OECD anti- 
bribery convention in January 2000. 
 
While there has been no lack of public accusations and 
suspicions of bribery, only a few cases have reached the 
prosecution and conviction stage. Allegations of corruption 
are most pervasive in connection with the court-controlled 
system of company registration and the police. Such 
allegations have also been raised in the course of recent 
privatizations and government procurements. A new government 
procurement law, required for EU accession, is intended to 
curb illegal activities in this sphere. The Transparency 
International chapter in the Czech Republic actively 
conducts public information campaigns through distribution 
of posters and has given numerous broadcast and print media 
interviews on corruption and bribery cases.  In 2004, the 
government proposed legislative changes and other actions to 
reduce corruption in public life. 
 
Bilateral Investment Agreements 
The former government of Czechoslovakia signed a bilateral 
investment treaty (BIT) with the United States, which came 
into effect in 1992. The Czech Republic adopted this treaty 
after the split with Slovakia. Changes to the treaty were 
agreed with the Czech Republic after extensive negotiations 
with the EU Commission and the Czech government during 2003. 
The amendments were narrowly tailored to meet EU concerns 
about perceived conflicts with the EU acquis communautaire. 
Subsequently, the Czech government is seeking further 
changes to the treaty that would affect its coverage and 
dispute settlement provisions.  To date, 70 countries have 
signed and ratified similar agreements with the Czech 
Republic. They include: Australia, Austria, Belgium- 
Luxembourg, Bulgaria, Canada, China, Denmark, Finland, 
France, Germany, Greece, Hungary, Israel, Indonesia, Italy, 
Jordan, Kazakhstan, Lebanon, North and South Korea, 
Mongolia, Norway, Paraguay, Poland, Russia, Slovakia, South 
Africa, Spain, Sweden, Switzerland, Thailand and the United 
Kingdom. Agreements with other countries are in the process 
of ratification. A bilateral U.S.-Czech Convention on 
Avoidance of Double Taxation has been in force since 1993. 
 
OPIC and Other Investment Insurance Programs 
 
Finance programs of the Overseas Private Investment 
Corporation (OPIC), including investment insurance, have 
been available in the Czech Republic since 1991. Investors 
are urged to contact OPIC's offices in Washington directly 
for up-to-date information regarding availability of 
services and eligibility. The OPIC InfoLine (202) 336-8799 
offers general information 24 hours a day. Application forms 
and detailed information may be obtained from OPIC, 1100 New 
York Avenue, NW, Washington D.C. 20527. The Czech Republic 
is a member of the Multilateral Investment Guarantee Agency 
(MIGA). 
 
Labor 
 
The wide availability of educated, low-cost labor on the 
doorstep of the more expensive Western European labor market 
is a major attraction for foreign investors, particularly 
those looking to invest in manufacturing industries. Wages 
and benefits are on the rise, but the Czech Republic will 
still have far lower labor costs in the year 2004 than those 
in Western Europe. There are currently no significant 
shortages of specialized labor skills, though foreign 
investors still cite weaknesses in middle-management levels. 
Various factors, including rigidities in the housing market, 
reduce the mobility of Czech workers within the country. 
 
By law, all workers have the right to strike once mediation 
efforts have been exhausted, with the exception of workers 
in sensitive positions (nuclear power plant operators, 
military, police, etc.) Significant labor unrest remains 
rare, particularly in the private sector. Public sector 
unions, notably the rail workers and health workers, have 
staged strikes when the government tried to limit public 
sector wage increases. Increased labor activity has been 
noted in mining and steel industries due to current economic 
problems. Workers in the Czech Republic have the legal right 
to form and join unions of their own choosing without prior 
authorization. Currently, about one-third of the total labor 
force is a member of some labor organization. The overall 
number of union members has fallen sharply since 1991, 
reflecting the fact that union membership is no longer 
compulsory. 
 
The Ministry of Labor and Social Affairs sets minimum wage 
standards. On January 1, 2001, a new labor code entered into 
force, harmonizing domestic rules with the EU. The standard 
workweek is 40 hours. Caps exist for overtime. Workers are 
assured 30 minutes of paid rest per work day and annual 
leave of at least four weeks per year. 
 
Foreign-Trade Zones and Free Ports 
 
Czech law permits foreign investors involved in joint 
ventures to take advantage of commercial or industrial 
customs-free zones into which goods may be imported and 
later exported without depositing customs duty. Duties need 
be paid only in the event that the goods brought into the 
free zone are introduced into the local economy. The 
investment incentive package also permits duty-free import 
of high tech goods and creation of additional foreign-trade 
zones. 
 
Currently authorized foreign trade zones in the Czech 
Republic are Cheb, Ostrava, Pardubice, Prague (2), Zlin, 
Trinec, Bor u Tachova, Frantiskov nad Ploucnici and Hradec 
Kralove. Rules for operations within a commercial or 
industrial customs-free zone are the same as in the EU. 
 
Foreign Direct Investment Statistics 
 
According to data compiled by the Czech National Bank and 
the U.S. Embassy, the stock of foreign investment in CR 
(including reinvestment of profits) totaled $41.1 billion in 
1993-2003 (56.4% of 2002 GDP). Germany and the Netherlands 
are officially the leading foreign investors. Their 
investments totaled $11.3 billion (31%) and $9.6 billion 
(26.0%) respectively, followed by the United States and 
Austria with $3.6 billion (10.1%) each, France with $2.2 
billion (6%), UK with $1.9 billion (5.2%). Other major 
investors include Belgium, Switzerland and Slovakia. In 2002 
inward flows of FDI reached $9.3 billion (13.3% of GDP and 
the second largest inflow per capita in Central and Eastern 
Europe, after Slovenia; as for FDI stock per capita, the 
Czech Republic is number one among these countries). The 
upswing in investment since 1998 is generally attributed to 
the introduction of investment incentives, as well as the 
Czech Republic's natural advantages. 
 
By sector, from 1993-2003 foreign direct investment flowed 
into manufacturing ($11.9 billion or 32.6%), financial 
services ($5.8 billion or 16%); trade, hotels and 
restaurants ($4.8 billion or 13.1%); transportation and 
telecommunications ($7.3 billion or 20%); real estate and 
business activities ($3.6 billion or 9.8%); and electricity, 
gas and water supply ($2.0 billion or 5.4%). Other sectors 
attracting foreign investment included mining and 
construction. Government officials anticipate the steady 
inflow of investment to continue, augmented among others by 
the eventual sale of the government shares in companies like 
the electrical utility CEZ and the telecom company Cesky 
Telecom. 
 
The stock of Czech direct investment abroad totaled $1.4 
billion as of December 2002. The flow of Czech investment 
abroad was $276 million in 2002, with principal destinations 
of Slovakia (40%), followed by Slovenia (26%), British 
Virgin Islands (11.0%), and the U.S. (4.6%). 
 
Significant foreign investors include: 
 
U.S. 
 
   Conoco/Dupont            $665 mil 
   Philip Morris            $420 mil 
     Pepsi-Cola             $291 mil 
   International 
     Coca Cola              $200 mil 
     IFC Kaiser            $176.4 mil 
 Cable, Design and          $170 mil 
  Technology (CDT) 
 Ford Motor Company         $115 mil 
E.M. Warburg Pincus         $110 mil 
    and Co. LLC 
 Proctor and Gamble         $109 mil 
 
Other Countries 
 
   RWE Gas AG         Germany        $3.6 bil 
   Toyota/PSA       Japan/France     $1.3 bil 
   KBC Bank NV        Belgium        $1.2 bil 
  Volkswagen AG       Germany        $1.2 bil 
Societe Generale       France        $1.0 bil 
  ING Holdings      Netherlands      $936 mil 
     Philips        Netherlands      $733 mil 
  South African     South Africa     $619 mil 
    Breweries 
 Kappa Packaging    Netherlands      $445 mil 
       BV 
     Siemens          Germany        $373 mil 
     Daewoo            Korea         $357 mil 
       DHL            Germany        $230 mil 
 
Sources of data for this report included the Czech 
Statistical Office, the Czech National Bank, CzechInvest, 
OECD and Central European Advisory Group. 
 
CABANISS