Czech Republic goes back in time with thin capitalisation
March 04, 2009
The Czech Republic looks set to revert to thin-capitalisation rules that existed in 2007 after a vote in the lower house of parliament on Tuesday.
The deputies approved a change that would increase the debt-to-equity ratio for loans between related parties from 2-to-1 to 4-to-1. The ratio for banks and insurance companies will go from 3-to-1 to 6-to-1.
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