INSTANT VIEW 1-Czech Sept current account gap above fcast

PRAGUE, Nov 12 (Reuters) - The Czech current account showed an 18.55 billion crown ($1.04 billion) deficit in September, higher than forecasts, due to dividend and interest payments and earnings at foreign-owned companies. Analysts in a Reuters poll had forecast a 14.0 billion crown shortfall. Czech central bank data showed the volume of dividends paid by Czech companies to their foreign owners in September reached to 23.6 billion crowns. The rolling 12-month deficit grew to 87.13 billion crowns, equal to about 2.4 percent of estimated 2010 gross domestic product, according to Reuters calculations. The data also showed foreign direct investment inflow of 9.1 billion, of which net reinvested earnings were 6.5 billion crowns. The finacnial account was boosted by inflows from a 2 billion euro government euro bond issue. **************************************************************** KEY POINTS: (CZK billions) Sept Aug Sept fcast Current Account -18.55 -18.11 -14.0 Financial Account 7.67 21.42 n/a Net Direct Investment 9.12 12.11 n/a (For full table, double click on) - Dividends paid in September reached 23.6 billion crowns. - Output balance of goods and services showed a 15 billion crown surplus. - The upward trend of the annual current account deficit total at a longer-term horizon continued. - The financial account showed a 7.7 billion crown surplus. - Portfolio investments showed a 53.1 billion crown surplus chiefly due to a government bond issue on foreign financial markets amounting to EUR 2 billion. - A deficit of 6.4 billion crowns on other investment reflected a change in the long-term position of banks vis-a-vis non-residents owing to an increase in deposits and loans provided abroad. - The central bank's international reserves (adjusted for valuation changes) rose by 48.5 billion crown. - The main reason was a temporary increase in foreign currency client deposits at the central bank. BACKGROUND: - Analyst expectations before data release - Czech September foreign trade figures - Polish September C/A data - Slovak August C/A data - Hungary's Q2 C/A data - Report on last Czech rate decision...... LINKS: - For further details on September of payments numbers and past data, Reuters 3000 Xtra users can click on the Czech National Bank's website: - For LIVE Czech economic data releases, click on - Instant Views on other Czech data - Overview of Czech macroeconomic indicators - Key data releases in central Europe - For Czech money markets data click on - Czech money guide - Czech benchmark state bond prices - Czech forward money market rates (Reporting by Jan Lopatka) ($1=17.87 Czech Crown) Keywords: holdCZECH BALANCE/ (; +420 224 190 477; Reuters Messaging: COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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