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May 9, 2018 12:00 am | FILED UNDER: business

CITIC Group To Cover Ye Jiaming’s J&T Banka Debt

By ČTK

Prague, May 9 (CTK) – Chinese state-run conglomerate CITIC Group will pay EU450m (Kc11.5bn) owed by the European subsidiary of CEFC China Energy to Czech bank J&T Banka within days, CEFC Europe deputy chairman Jaroslav Tvrdik said in an interview for the server Seznam Zpravy today.

 

“I consider the crisis (concerning CEFC debts) ended as of yesterday as regards Czech assets. The CITIC Group board chairman sent a binding bank guarantee to our financing institution, J&T, on Tuesday, expressing readiness to pay the amount of around EUR450m within five days. I expect J&T to use this right,” Tvrdik said.

 

J&T Private Investments has confirmed the existence of the letter from CITIC Group but expressed doubts about Tvrdik’s information.

 

“The information on the bank guarantee is not true, but our confidentiality obligation does not allow us to provide further details,” J&T Private Investments said.

 

Shares of CEFC Europe cannot be handled without J&T’s knowledge, the company added.

 

Information about CEFC’s financial problems emerged following reports that CEFC group head Ye Jianming is being investigated by Chinese authorities on suspicion of having committed an economic crime.

 

Tvrdik said today he had no information about the fate of Ye Jianming.

 

CEFC’s debts are pledged by the building of the former Zivnobanka bank in the centre of Prague, the Florentinum administrative complex and the Slavia soccer stadium, among other things.

 

CITC Group has recently acquired 49 percent in CEFC Europe. The management of CITIC Group plans to complete all CEFC Europe’s investments in the Czech Republic as well as to launch new projects.

 

J&T is a unit of J&T Finance Group, in which CEFC has a stake of 9.9 percent. Previous plans to raise this stake to 50 percent have been scrapped due to CEFC’s financial difficulties.

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