WORLD TRADE G/SCM/N/16/CZE
1August 1997
ORGANIZATION(97-3258)
Original: English Committee onSubsidies
andCountervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI:1 oftheGATT 1994
andArticle 25oftheAgreement onSubsidies and
Countervailing Measures
CZECH REPUBLIC
Thefollowingcommunication,dated22July1997,hasbeenreceivedfromthePermanentMission
oftheCzech Republic.
_______________
Thetotalvolume ofState Aidin1995 iscalculated atCZK 30,678 million, orroughly
ECU 894million (using thesimple daily average of1995 exchange rateofCZK 34.31 perECU).
Thegross domestic product for1995 hasbeenestimated atCZK 1,252 billion, sothelevelofState
Aidcorresponds to2.45% ofGDP. Thisinturns corresponds to7.1% oftotalGovernment spending
in1995.
Thetotalnumber ofpersons employed inallbranches ofeconomic activity was5,012,000,
which corresponds toStateAidanamount ofCZK6,121, respectively ECU178perperson employed.
TABLE OFCONTENTS
Page
Tables ........................................................2
Export Promotion .................................................3
State Loan Guarantees granted tofinance certain development programmes approved
bytheGovernment ................................................6
State Support forResearch andDevelopment ................................8
State Subsidy toPromote theConservation ofFuels andEnergy Savings inBuildings andFlats 10
Subsidy toTransport Organizations ......................................12
Investment Subsidies forRailway Infrastructure ..............................14
De-Commissioning ofMining Activity ....................................16
Promotion ofSmall andMedium-Sized Enterprises ............................18
State Environmental Fund ............................................20
Support forAgriculture .............................................22G/SCM/N/16/CZE
Page2
Table 1:State AidintheCzech Republic in1995 (inCZK million)
Type ofAid/Form ofaid Grant Softloan Guarantee TOTAL Form No.
General AidTOTAL
-Industry Loan Guarantees
-Energy Saving Measures
-Environmental Protection2,716
0
175
2,541269
0
4
265782
782
0
03,767
782
179
2,806No.2
No.4
No.9
Regional AidTOTAL
Research andDevelopment TOTAL0
4,6670
280
00
4,695 No.3
Sectoral AidTOTAL
-Mining De-Commissioning
-Transport Subsidies14,676
4,794
9,8820
0
00
0
014,676
4,794
9,882No.7
Nos.5,6
Small Firms Development TOTAL
Export Promotion TOTAL
Agriculture TOTAL1,196
89
5,6210
0
14610
10
01,806
99
5,635No.8
No.1
No.10
TOTAL 28,965 311 1,402 30,678
Table 2:State AidintheCzech Republic in1995 (inECU million)
Type ofAid/Form ofaid Grant Softloan Guarantee TOTAL Form No.
General AidTOTAL
-Industry Loan Guarantees
-Energy Saving Measures
-Environmental Protection79.2
0.0
5.1
74.17.8
0.0
0.1
7.722.8
22.8
0.0
0.0109.8
22.8
5.2
81.8No.2
No.4
No.9
Regional AidTOTAL
Research andDevelopment TOTAL0.0
136.00.0
0.80.0
0.00.0
136.8 No.3
Sectoral AidTOTAL
-Mining De-Commissioning
-Transport Subsidies427.7
139.7
288.00.0
0.0
0.00.0
0.0
0.0427.7
139.7
288.0No.7
Nos.5,6
Small Firms Development TOTAL
Export Promotion TOTAL
Agriculture TOTAL34.9
2.6
163.80.0
0.0
0.417.8
0.3
0.052.6
2.9
164.2No.8
No.1
No.10
TOTAL 844.2 9.1 40.9 894.1G/SCM/N/16/CZE
Page3
1. Titleofaidscheme/aid measure
Export Promotion
2. Level ofgovernment responsible forscheme
Central Government
3. Statutory responsibility forscheme
Ministry ofEconomy
4. Legal basis
Supplemented bytheExport Guarantee andInsurance Corporation (Exportní garanc nía
pojišt'ovací spolec nost,a.s.-EGAP) founded asastatecompany under theDecision oftheGovernment
in1992, newActonInsurance andFinancing ofExports withState Support (No.58/1995).
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange
7. Aimofscheme/aid measure
Horizontal
Export promotion ofCzech enterprises.
Regional, Sectoral
Norestrictions astoregion orsector
8. Forms ofaid
- Insurance ofexport credits against commercial andpolitical risks (premium rate
1.5-7.5% ofinsured amount)
- Export subsidies tocompensate fordifferences between domestic andforeign interest
rates
Theequity oftheEGAP wasprovided bystatebudget. From thelongtermpointofviewthecorporation
istobeself-financing.G/SCM/N/16/CZE
Page4
Description ofitsrules andconditions ofapplication
- Czech -based enterprises, regardless ofownership
- min.60%ofdomestic supplies intotalexport
- max. 70%ofexcess ofdomestic overforeign interest ratescompensated
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Notapplicable.
10. Other aidlimitations orcriteria foreachform ofaid
Aidisnotautomatic-theauthority(EGAP)decidesonthebasisofapplicationsfromenterprises.
11. Repayment andpenalty arrangements
Repayment specified inthecontracts.
12. Cumulation ofaidfrom different sources
Notcumulated.
13. Duration ofscheme aid/measure
According toduration ofindividual case.
14. Budget
CZK 889million intotal
CZK 800million -equity fortheinsurance fund
CZK 89million -interest ratecompensation
Balance (inmil.CZK)
premium losses
126 10
Sources ofbudget
CZK 889million -statebudget
15. Resulting sectoral orregional concentration ofaid
Notspecified.
16. Estimated number ofrecipients
3-interest ratescompensation
30-long-term insurance (longer 2years)
81-short-term insurance
(insured amount ofexport about CZK 8.3billion in1995)G/SCM/N/16/CZE
Page5
Information/control measures
Board ofDirectors, Ministry ofFinance
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures.
19. Other relevant data
Newly established (July 1995) financial institution controlled bytheGovernment -theCzech
Export Bank (CEB) -hasstarted itsactivity in1996. Bothinstitutions, i.e.EGAP andCEBoperate
underconditionscompatiblewithcontentsofArrangementonGuidelinesforOfficiallySupportedCredits
(theOECD Consensus) andUnderstandings oftheInternational Union ofCredit andInvestment Insurers
(theBerne Union).G/SCM/N/16/CZE
Page6
1. Titleofaidscheme/aid measure
State Loan Guarantees granted tofinance certain development programmes approved bythe
Government.
2. Level ofgovernment responsible forscheme
Central Government.
3. Statutory responsibility forscheme
Ministry ofFinance
4. Legal basis
Government isempowered bytheActonBudgetary Regulations (No.576/1990).
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Development programmes approved bytheGovernment directed totheinfrastructure,
environment andsome areas ofindustrial production.
Regional, Sectoral
8. Forms ofaid
State guarantees onloans from banks.
Description ofitsrules andconditions ofapplication
Setdown individually, general ruleisthedebtors bond ofproperty, compulsory feesforthe
guarantee provision (fees0.5%ofguaranteed amount since 1994).
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Notapplicable.
10. Other aidlimitations orcriteria foreachform ofaid
Aidisnotaccorded automatically, thegovernment decides eachguarantee individuallyG/SCM/N/16/CZE
Page7
11. Repayment andpenalty arrangements
Specified ineachcontract, penalty according totheBudgetary Regulations Act(No.576/1990).
12. Cumulation ofaidfrom different sources
Notcumulated.
13. Duration ofaidscheme/aid measure
According tothematurity ofguaranteed credits.
14. Budget
Total stock oftheguarantees provided isCZK 40billion (at31December 1995), guarantees
invalue ofCZK 782million havehadtobepaidovertobanks in1995.
Balance inmil.CZK
fees losses
10 782
Sources ofbudget
State budget.
15. Resulting sectoral orregional concentration ofaid
Notspecified
16. Estimated number ofrecipients
8guaranteed projects in1995, theprincipal guarantees aretoCEZ (state-owned electricity
company),SPT(state-ownedtelecomscompany)andCSA(nationalairline)andairportterminalRuzyne.
17. Information/control measures
Controlled bytheMinistry ofFinance.
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures.
19. Other relevant data
Noother .G/SCM/N/16/CZE
Page8
1. Titleofaidscheme/aid measure
State Support forResearch andDevelopment
2. Level ofgovernment responsible forscheme
Central Government
3. Statutory responsibility forscheme
Government Council forResearch andDevelopment,
Grant Agency, respective ministries
4. Legal basis
Granted bytheGovernment Grant Agency (Grantová agentura), orfrom thebudgets ofthe
respective ministries according totheActonState Support forResearch andDevelopment
(No.300/1992), theActonBudgetary Regulations (No.576/1990), theActonState Budget
1995.
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Basic research (95%) andtechnological development (advanced technologies insmall and
medium-sized enterprises, energy saving, environmental protection, other technologies)
Regional, Sectoral
8. Forms ofaid
- direct subsidies (grant)
- zerointerest loans (max. 3years)
Description ofrules andconditions ofapplication
- ability toundertake theproject
- expected value ofproject inthesector
- social importance ofproject
- importance ofproject forinfrastructure ofscience andtechnology
- adequacy offinancial proposalG/SCM/N/16/CZE
Page9
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Non-investment expenditures,
Investment expenditures forequipment
10. Other aidlimitations orcriteria foreachform ofaid
According toresults ofpublic procurement theGovernment Council forResearch and
Development undertakes selection .
11. Repayment andpenalty arrangements
According totheindividual contracts, repayment during next max. 3(5)years, penalty.
According totheBudgetary Regulations Act(No.576/1990).
12. Cumulation ofaidfrom different sources
Notregistered.
13. Duration ofaidscheme/aid measure
Generally notlimited, specified ineachcontract.
14. Budget
CZK 4,863 million, ofwhich:
CZK 4,667million -grant
CZK 196million -zerointerest loan
(average interest rate1994 formedium term bank loans -14.33%, interest saved bythe
recipients -CZK 28mil.)
Sources ofbudget
State budget
15. Resulting sectoral orregional concentration ofaid
Notspecified.
16. Estimated number ofrecipients
Approximately 7,000.
17. Information/control measures
TheCentral Registration ofProjects controlled bytheGovernment Council forResearch and
Development.
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures.
19. Other relevant
Noother.G/SCM/N/16/CZE
Page10
1. Titleofaidscheme/aid measure
State Subsidy toPromote theConservation ofFuels andEnergy Savings inBuildings and
Flats.
2. Level ofgovernment responsible forscheme
Central Government .
3. Statutory responsibility forscheme
Ministry ofIndustry andTrade.
4. Legal basis
Granted bytheCzech Energy Agency (Ceskáenergetická agentura), organization sponsored
bytheMinistry ofIndustry andTrade according tothePrinciples ofStateSupport inFuels andEnergy
Savings.
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Fuels andenergy savings (renovation andconstruction ofalternative energy sources, improving
thethermo-technological quality ofbuildings, measurement andregulation ofheating, supporting energy
advisory services).
Regional, Sectoral
8. Forms ofaid
- grant (87.5 %)
- zerointerest loan(12.5 %)
Description ofitsrules andconditions ofapplication
According tothePrinciples ofState Support published byMinistry ofIndustry andTrade.
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Asspecified inPrinciples ofState Support.G/SCM/N/16/CZE
Page11
10. Other aidlimitations orcriteria foreachform ofaid
Aidisnotaccorded automatically, theauthority undertakes selection.
11. Repayment andpenalty arrangements
According totheindividual agreements .
12. Cumulation ofaidfrom different sources
Notapplicable.
13. Duration ofaidscheme/aid measure
3-4years .
14. Budget
CZK 200million
(CZK 89million -complex thermo-insulation
CZK 46million -measurement andregulation
CZK 25million -alternative energy sources
CZK 15million -information andconsultancy
CZK 15million -support ofbusiness activities
CZK 10million -other projects)
Sources ofbudget
State budget 1995 -CZK 200million
15. Resulting sectoral orregional concentration ofaid
Notspecified.
16. Estimated number ofrecipients
210-grants
50-loan
17. Information/control measures
TheMinistry ofIndustry andTrade, theCzech Energy Agency.
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures
19. Other relevant data
Noother.G/SCM/N/16/CZE
Page12
1. Titleofaidscheme/aid measure
Subsidy toTransport Organizations
2. Level ofgovernment responsible forscheme
Central Government.
3. Statutory responsibility forscheme
Ministry ofTransport.
4. Legal basis
TheActonState Budget 1995.
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Subsidy foroperating losses ofthestaterailway, compensation tobuscompanies forstudent
fares, assistance toCzech Airlines.
Regional, Sectoral
8. Forms ofaid
Grant.
Description ofrules andconditions ofapplication
- losses ofstaterailway
- grants forbuscompanies tocompensate losses from student fares
- coverage ofinterest costs oftheairline fortechnical equipment leasing
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Social character oftransport prices, Czech Airlines -certain credits.
10. Other aidlimitations orcriteria foreachform ofaid
Aidisnotaccorded automatically, provided under annual Decision oftheGovernment.G/SCM/N/16/CZE
Page13
11. Repayment andpenalty arrangements
On-returned subsidy penalties according totheBudgetary Regulations Act(No.576/1990).
12. Cumulation ofaidfrom different sources
Notcumulated.
13. Duration ofaidscheme/aid measure
- price subsidies willbeslowly withdrawn inaccordance withtheprice deregulation,
timeschedule hasnotbeensettled
- interest grants totheCzech Airlines should bepaiduntil1997
14. Budget
CZK 6,661 million asatotal, from which:
CZK 5,301 million Czech Railways Company
CZK 1,200 million BusTransport
CZK 160million Czech Airlines
Sources ofbudget
State budget
15. Resulting sectoral orregional concentration ofaid
Notspecified.
16. Estimated number ofrecipients
86
(ofwhich BusTransport -84)
Note: municipal transport companies, which arepublicly owned, receive operating subventions
separately from localgovernment.
17. Information/control measures
TheMinistry ofTransport.
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures.
19. Other relevant data
Noother.G/SCM/N/16/CZE
Page14
1. Titleofaidscheme/aid measure
Investment Subsidies forRailway Infrastructure.
2. Level ofgovernment responsible forscheme
Central Government.
3. Statutory responsibility forscheme
Ministry ofTransport.
4. Legal basis
ActonState Budget 1995.
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Regional, sectoral
Promotion oftherailway infrastructure.
8. Forms ofaid
Capital subsidy forenterprise usedforinvestment inrailways transport infrastructure andfor
reconstruction andimprovement ofrailways.
Description ofitsrules andconditions ofapplication
- public tender andthespecific contract foreachorder
- thefinalamount ofsubsidy isaccorded afterconfirming
- completing andfulfilling parameters ofcontracted supply
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Notapplicable.
10. Other aidlimitations orcriteria foreachform ofaid
Noother.G/SCM/N/16/CZE
Page15
11. Repayment andpenalty arrangements
Norepayments, penalties aregenerally arranged intheBudgetary Regulation Act
(No.576/1990)
12. Cumulation ofaidfrom different sources
Noother aidsources.
13. Duration ofaidscheme/aid measure
Notlimited duration, laiddown bythebudget acteachyear.
14. Budget
1995 actual transfers from thestatebudget: CZK 3,221 million thiswas52%oftotalrail
investment in1995 CZK 6,250 mil.
15. Resulting sectoral orregional concentration ofaid
Notspecified.
16. Estimated number ofrecipients
1recipient: Czech Railways, statecompany.
17. Information/control measures
Ensured bytheMinistry ofFinance andtheMinistry ofTransport -evaluation ofthecourse
ofsupply andcontracted conditions.
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures.
19. Other relevant data
Noother.G/SCM/N/16/CZE
Page16
1. Titleofaidscheme/aid measure
De-Commissioning ofMining Activity.
2. Level ofgovernment responsible forscheme
Central Government.
3. Statutory responsibility forscheme
Ministry ofIndustry andTrade.
4. Legal basis
TheBudgetAct1995andtheMinistryofFinanceDecreeaccordingtotheGovernmentDecisions.
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Regional, sectoral
State assistance tode-commissioning inthemining industry.
8. Forms ofaid
Grant.
Description ofitsrules andconditions ofapplication
Subsidy isprovided tocover thecosts ofde-commissioning ofmining activities according to
thegovernment resolution andtechnical planof:
- liquidation ofmining plants
- compensation ofdismissed employees
- compensation ofecological damage
- recultivation ofenvironment
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Specified inBudget Act1995.G/SCM/N/16/CZE
Page17
10. Other aidlimitations orcriteria foreachform ofaid
Noother.
11. Repayment andpenalty arrangements
According tothegeneral penalty conditions intheBudgetary Regulations Act(No.576/1990)
12. Cumulation ofaidfrom different sources
Notcumulated.
13. Duration ofaidscheme/aid measure
Notlimited, approved foreachyearseparately.
14. Budget
CZK 4,794mil.in1995 from statebudget, ofwhich:
CZK 2,272mil.-technical liquidation ofmining plants
CZK 1,686mil.-compensation ofdismissed employees
CZK 836mil.-recultivation ofenvironment
15. Resulting sectoral orregional concentration ofaid
Notspecified.
16. Estimated number ofrecipients
16mining companies.
17. Information/control measures
Ensured byMinistry ofFinance andMinistry ofIndustry andTrade.
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures
19. Other relevant data
Noother.G/SCM/N/16/CZE
Page18
1. Titleofaidscheme/aid measure
Promotion ofSmall andMedium-Sized Enterprises.
2. Level ofgovernment responsible forscheme
Central Government.
3. Statutory responsibility forscheme
Ministry ofEconomy.
4. Legal basis
AdministeredbytheCzechomoravianGuaranteeandDevelopmentBank(Ceskomoravskázárucní
arozvojová banka, a.s.)founded under theDecision oftheGovernment inDecember 1991
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Small andmedium -sized enterprises, promotion forprivate business.
Regional, sectoral
Regionaldimensionhasadditionalsupportin13districtswitheconomicproblems(unemployment
-48%ofinterest settlement), sectoral dimension hassupport ofprivate health sector andpharmacy
-4.8% ofloanguarantees, 5.5% ofinterest settlement.
8. Forms ofaid
- partial settlement ofinterest ofloans
- loanguarantees
Description ofitsrules andconditions ofapplication
- firmresidence andproject realization -Czech Republic
- development projects, investment credits
- max. number ofemployees -500(since 1997 -250)
(inselected projects -max. 10or24)
- %limits foreachsupport, notavailable generallyG/SCM/N/16/CZE
Page19
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Notapplicable.
10. Other aidlimitations orcriteria foreachform ofaid
Aidisnotaccorded automatically, theauthority (CMZRB) undertakes selection.
11. Repayment andpenalty arrangements
Non-returned subsidies, general rules forpenalties intheBudgetary Regulations Act
(No.576/1990).
12. Cumulation ofaidfrom different sources
Notcumulated.
13. Duration ofaidscheme/aid measure
Forsettlement ofinterest max. 4years forindividual projects, duration ofthewhole scheme
notlimited.
14. Budget
CZK 1,196 million -settlement ofinterest subsidies
CZK 610million waspaidtobanks inrespect ofdefaulting loans during 1995
(CZK 918million ofloans were guaranteed attheendof1995)
15. Resulting sectoral orregional concentration ofaid
Seepoint No.8.
16. Estimated number ofrecipients
1,792 -settlement ofinterest ofloans
176-loanguarantees
17. Information/control measures
Ensured bytheMinistry ofEconomy, regular information from recipients ofsubsidy with
confirmation ofbank.
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures.
19. Other relevant data
Noother.G/SCM/N/16/CZE
Page20
1. Titleofaidscheme/aid measure
State Environmental Fund.
2. Level ofgovernment responsible forscheme
Central Government.
3. Statutory responsibility forscheme
Ministry ofEnvironment.
4. Legal basis
According totheActNo.388/1991.
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Support forenvironmental protection andimprovement.
Regional, sectoral
Regional dimension haspreferential support ofselected regions (Northern Bohemia).
8. Forms ofaid
Grant (52%).
Loan (48%).
Description ofitsrules andconditions ofapplication
SetdownindividuallyaccordingtotheInstructionofMinistryofEnvironment,maximumsupport
forgrant orloan-40%ofbasis fordetermination ofsubsidy.
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Notapplicable.
10. Other aidlimitations orcriteria foreachform ofaid
Aidisnotaccorded automatically, theCouncil ofSEFandMinistry ofEnvironment undertake
selection.G/SCM/N/16/CZE
Page21
11. Repayment andpenalty arrangements
Penalty inaccordance withgeneral conditions intheBudgetary Regulations Act(No.576/1990).
12. Cumulation ofaidfrom different sources
Notcumulated.
13. Duration ofaidscheme/aid measure
Max. 7years (loan).
14. Budget
CZK 4,879 million
CZK 2,541 million -grant
CZK 2,338 million -loan
(loans withaverage interest rate3%,average interest rate1995formedium-term bankloans -14.33%,
interest saved bytherecipients -CZK 265million)
Sources ofbudget
- payment forletting outofwaste water
- payment forletting outofharmful material toatmosphere
- payment according totheActforwaste
- payment forsoiloccupation
- other
15. Resulting sectoral orregional concentration ofaid
Seepoint No.8.
16. Estimated number ofrecipients
364.
17. Information/control measures
Ensured byControl Division ofSEF, Ministry ofEnvironment.
18. Justification ofthecompatibility oftheaidscheme
Infullconformity withWTO Agreement onSubsidies andCountervailing Measures.
19. Other relevant data
Noother.G/SCM/N/16/CZE
Page22
1. Titleofaidscheme/aid measure
Support forAgriculture.
2. Level ofgovernment responsible forscheme
Central Government.
3. Statutory responsibility forscheme
Ministry ofAgriculture.
4. Legal basis
TheBudgetary Rules Act,
ThePrinciples ofState Support elaborated bytheMinistry ofFinance andthe
Ministry ofAgriculture, Statutory Order forSubsidy Presentation
5. Neworanexisting scheme
Firstnotification in1993.
6. Which rules andconditions arebeing changed andwhy
Nochange.
7. Aimofscheme/aid measure
Horizontal
Support fordevelopment ofmarket economy, re-structuring ofproduction, support for
preservation ofgenetic potential, support forforest farming andimprovements indrinking-water
supply.
8. Forms ofaid
Grant.
Non-interest bearing loans withrepayment 7-15years.
Description ofitsrules andconditions ofapplication
According tothePrinciples.
9. Eligible costs foreachform ofaidonwhich theaidiscalculated
Notapplicable.
10. Other aidlimitations orcriteria foreachform ofaid
Aidisnotaccorded automatically, theGrant Commission oftheMinistry ofAgriculture
undertakes selection.G/SCM/N/16/CZE
Page23
11. Repayment andpenalty arrangements
Inaccordance withtheBudgetary Regulations Act(No.576/1990).
12. Cumulation ofaidfrom different sources
Notcumulated.
13. Duration ofaidscheme/aid measure
1year.
14. Budget
Total amount 1995 CZK 5,720 million, ofwhich:
99million -loans atzerointerest
668million -genetic potential grant
1,174 million -countryside preservation grant
247million -newforests protection grant
330million -environment-water economy grant
265million -cattle -grant
53million -newgrass protection grant
114million -grant -animals, products
209million -environmental priority -forestry grant
50million -grant forinformatization
75million -bee-keeping -grant
80million -grant forreconstruction ofvineyards andhopplantations
30million -consultancy -grant
27million -grant oftransformation oflandtoforests
2,299 million -grant forFarming andForestry Support andGuarantee Fund
(guarantees, grants forpartial settlement ofinterests)
Sources ofbudget
State budget.
15. Estimated number ofrecipients
About 16,000.
16. Information/control measures
Regional Divisions oftheMinistry ofAgriculture.