Bloomberg News

Czech Current-Account Deficit Widened on Dividend Outflow

October 13, 2011

Oct. 13 (Bloomberg) -- The Czech current-account deficit widened in August to 33.65 billion koruna ($1.88 billion), the widest monthly shortfall this year, as foreign-owned companies sent money home in the form of dividends.

The deficit for August included 39 billion koruna in dividend payments, the central bank in Prague said today on its website. The current-account result exceeded a median forecast for a shortfall of 16 billion koruna by nine analysts in a Bloomberg survey.

The Czech units of companies such as Societe Generale SA, Erste Bank AG, Philip Morris International Inc. and Volkswagen AG often transfer much of the dividend payments to their offices outside of the country during the middle of each year.

The balance of current transfers in August included a surplus of 2.7 billion koruna from transfers to the European Union budget, the central bank said.

--Editor: James M. Gomez

To contact the reporter on this story: Douglas Lytle in Prague at dlytle@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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