Companies still conservative when raising new finance
Contrary to very good economic results and market shares developments, bond and stock issues are a totally unusual way of financing in Czech business environment - a survey carried out by the Prague University of Economics (VSE) has revealed.
“Companies use as traditional methods as bank loans or use their own resources. Issuing new shares or bonds is a totally rare move,” Eva Kislingerova of VSE said.
“The 80 percent of firms using their own resources for long-term financing of their operation is stunning,” she said, adding it indicates that Czech companies had created huge reserves that they are using now this way.
There have been very suitable conditions for raising new financial resources in other ways, but businesses did not use them, she added.
The respondents in the survey were 252 Czech companies in the manufacturing industry, especially firms with more than 250 employees.
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