PRAGUE, Nov 27 (CTK) - The Chamber of Deputies today passed the law on a Kc12bn loan from the European Investment Bank (EIB) which the government wants to use for the repair of damage caused by the summer disastrous floods, drawing Kc7.5bn next year and the remaining Kc4.5bn in 2004.
Deputies for the Civic Democratic Party ODS expressed some reservations about the bill arguing that while MPs will continue to discuss a draft state budget for next year with a proposed deficit of Kc111.3bn with the loan the deficit will actually rise to Sk119bn. The Chamber should discuss the draft budget at its current session.
However, the ODS did not block discussion of the bill nor did it vote against its passing.
ODS deputy Martin Kocourek said that the government should cover the flood damage in the first place with national funds and only when they are lacking consider a foreign loan.
Out of the total amount, Kc4.3bn will be spent on the repair of state-owned water management facilities, Kc2.8bn on the repair of state-owned transport infrastructure, the same amount on the repair of the Prague Metro underground, Kc1.5bn will go to the Agriculture Ministry, Kc300m to the Industry and Trade Ministry for the reconstruction of damaged buildings, and Kc100m to the Local Development Ministry for the repair of local roads.
The European Investment Bank has earmarked EUR1bn (Kc30bn) for assistance to the flood-hit countries, of which EUR400m (Kc12bn) to the Czech Republic and EUR600m (Kc18bn) to Austria and Germany.