Five European banking institutions are negotiating for the purchase of 100% stake in the Czech Republic's eBanka from financial group PPF. The suitors comprise Italian financial groups UniCredit, Intesa and Banco Popolare di Verona, Austrian Raiffeisenbank International and British HSBC. Interested parties are carrying out due diligence on eBanka, which precedes the bids submission. Raiffeisenbank International has allegedly made the most progress with negotiations. eBanka audited net profit reached 10.5 milllion Czech Koruna in 2005 after three years of losses. The bank's assets totalled 17.347 billion Koruna at the end of 2005, up 25% year-on-year.
Ecuador will lose 200,000 jobs if the country does not sign a free trade agreement (FTA) with the USA, Ecuador's chief negotiator, Manuel Chiriboga, said.'The lack of a FTA with USA would lead to a $500 million loss in exports. Peru has already signed a FTA with the USA and Colombia has successfully completed FTA negotiations with the USA. If Ecuador does not sign a FTA with the USA, it would face an increase in production costs compared to Peru and Colombia, Chiriboga pointed out. Ecuadorian negotiations team expects that the country would conclude negotiations on the FTA with the USA on May 15, 2006, but warned against the possibility that the negotiations would fail.
During the first quarter of the year the Chilean international trade reached $19.93 billion, a hike of 29% compared to same period in 2005, according to the Servicio Nacional de Aduanas. Exports to the Nafta rose 33% and to the EU 29%. Exports to to Mercosur rose 23%. In the period, exports reached $11.83 billion while imports were $8.16 billion, meaning an expansion of 34% and 22%, respectively. Exports to America represented 37%, to Asia 33% and to Europe 28%.
Turkey's economy minister Ali Babacan said that net public debt declined to 55.8% of GNP at the end of last year, from 63.5% at the end of 2004. The government aimed to reduce the public debt/GNP ratio to 55% to 57% this year. Public debt stood at 78.6% of GNP at the end of 2002.
President Hu Jintao said that China's economy grew 10.2% in the first quarter of 2006, compared to the first quarter of 2005. He also expressed concern about the rapid growth. China's economy grew 9.9% in 2005, and the government is targeting GDP growth of 8% this year. Jintao stressed the need to achieve efficient development rather than excessive rapid growth. He also said that the government would pay more attention to quality growth, resource conservation, environmental protection and improving people's lives.
China's foreign exchange reserves continued to surge in March 2006, increasing by 32.8% year-on-year to $875.1 billion. Reserves increased by $56.2 billion during the first quarter of this year. In February, China's foreign exchange reserves exceeded Japan's, as the world's biggest. The announcement on comes after the central bank decided to allow businesses and individuals to hold more foreign currency. China requires its companies to sell to the government a part of the foreign currency that they earn abroad, and travellers are allowed to take a small amount out of the country.