ČNB ends 2022 with a loss of CZK 412 billion
According to preliminary unaudited data, the CNB ended 2022 with an annual loss of CZK 412 billion. The highest annual loss to date of almost CZK 250 billion was recorded in 2017 due to the appreciation of the koruna after the end of the exchange rate commitment. The negative result for 2022 is due to a combination of a stronger crown, a double-digit decline in equity portfolios where a portion of reserves are invested, and higher monetary policy implementation costs due to the CNB base rate hike and the large amount of liquidity in the financial sector following the CNB’s interventions from 2013-2017.
Hundreds of billions are involved. The Constitutional Court has ruled to reduce the indexation of pensions
Price growth in the critical period from July 2022 to January 2023 in pensioner households was 11.5 per cent, according to the government’s statement. Using the standard statutory mechanism, which is activated when prices rise by more than 5 per cent, the average pension would have risen by CZK 1,770 in June 2023, compared with CZK 760 after the amendment. The government thus saved CZK 19.4 billion last year alone. If it had let the valorisation take place according to the standard mechanism, the total budgetary costs could reach up to CZK 400 billion in the next decades, according to both ministers.
Note: ČNB is Czech National Bank (aka Central Bank)
Source aktualne.cz/ustavni-soud-vyhlasuje-jak-rozhodl-o-zkracene-valorizac/