Czech Railways wants to use the money for new trains and other investments.
Czech Railways will significantly increase its debt. They have concluded framework agreements with three banking institutions (Raiffeisenbank, UniCredit Bank, Všeobecná úvěrová banka) for seven years, which will allow carriers to draw a loan of up to CZK 8.5 billion. The railways call it strengthening liquidity, while interest rates are said to be “Historically most advantageous”. The rate was not published.
“More than four billion lower revenues in 2020 and a further drop in revenues from passenger transport as a result of current anti-epidemic measures have caused Czech Railways to have less money to invest in its development,” said the head of ČD Ivan Bednárik. “And despite the fact that we realize savings where possible, we cannot resign from the purchase of equipment or the development of facilities for its maintenance. In the agreements with the region and the state, we promised new trains and we will fulfill this commitment. It is an investment in the future, “ he added.
According to Bednárik, Czech Railways is a strong and reliable company “With healthy debt”. According to annual report for 2019 the tracks had long-term loans and credits of almost 39 billion crowns. The vast majority of this is due to bonds. AT last issue In the amount of EUR 500 million (approx. CZK 13 billion) from the spring of 2019, the runways achieved an interest rate of 1.5 percent.
Last year, Czech Railways carried 117.7 million passengers, down 64 million year-on-year. The crisis has weakened long-distance and regional transport. Despite the losses, however, they continue to invest in their fleet. Earlier this week concluded a contract for the supply of 20 new long-distance trains for 12.5 billion crowns from the consortium of Siemens Mobility and Škoda Transportation. In February, the railways also ordered 33 trains for regional transport for almost three billion crowns. Motorcycles will be supplied by Polish Pesa.
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