An exceptional transaction took place in the banking sector of the Czech Republic. On June 16, 2000, a forced administration was imposed on the third biggest bank in the country by Czech National Bank (Česká národní banka / ČNB) and yet, on Monday June 19, 2000, the entire banking group was delivered to the hands of the said bank´s competitor - small Czechoslovak Merchant Bank (Československá obchodní banka / CSOB Bank) for only one (1) Czech crown. The Czech Government provided the new owner with unprecedented state guarantees having resulted in a number of problems. The Minister of Finance Mr. Mertlík together with Czech National Bank have initially estimated costs of the State at the maximum of CZK 50 billion in order to "clean portfolio" of the newly established bank by merger. Based on well-informed sources, the aforesaid figure now comes to an unbelievable sum of CZK 130 billion (USD 7 billion). The case introduced below may explain as to why the State subsidy was drawn on such a large scale. This dispute is not the only one CSOB Bank is engaged in even with the State having been so generous. Many cases still remain unexplained.

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