In what could amount to its most ambitious show of support for the Czech economy yet, the government is preparing to call for a halt to all loan payments for a period of six months. Until now, for example, banks have been offering mortgage clients the possibility to halt payments for a three-month period without being penalized. Thousands have already filed applications, but bank officials admit that not all of their clients will be approved. This new proposal by the government would make the cessation of payments automatic for all bank clients, including companies. The move appears to be another signal that the government is keen to do what it can to avoid widespread insolvency. Hospodářské noviny writes that the move appears to have a good chance of making it through parliament, with opposition parties claiming that they’d been asking for such a bill for over a week already.
