The state-owned insurance firm EGAP has obtained a CZK 2 billion loan from the Czech Republic’s COVID aid program for Liberty Ostrava, which is closely linked to Greensil, a company embroiled in corruption scandal.

The COVID Plus program in the Czech Republic will provide hundreds of billions of dollars to large exporters, but there is no oversight or regulation. 

It is the job of the state to explain which projects it backs and give reasons for doing so, but EGAP remains mum on its questionable investments.

The Czech government’s COVID-19 aid to large polluters like Liberty Steel Ostrava, which is on the verge of bankruptcy, continues to be a cause for concern.The case is another illustration of the shortage of transparency and accountability in export credit agencies (ECAs).

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