Prague cleans up as threat continues

President Vaclav Havel surveys flooded areas of Prague from the Charles Bridge

PRAGUE, Czech Republic -- Flood waters are continuing to retreat from record levels in some parts of the Czech capital Prague, allowing the clean-up operation to begin and residents to return to their homes.

But the good news on Friday was tempered by spiralling estimates for the economic cost of the calamity. Meanwhile, areas north of the city were braced for more high waters where the Vltava and Elbe rivers meet on their way into southeastern Germany.

The floods are among several that have killed about 100 people across Europe and forced tens of thousands to evacuate their homes. Along with Germany and the Czech Republic, flooding has hit communities in Austria, Slovakia, Russia, and Romania. (Full story)

CNN NewsPass VIDEO Record-breaking floods roar through Europe (August 15) Play video Cost of Czech repairs estimated at more than 6 billion euros (August 15) Play video Residents struggle to reclaim Prague. (August 15) Play video Dresden facing an onslaught. (August 15) Play video   MORE STORIES • Prague: Despair and solidarity  • Schroeder poll hopes buoyed  • Damage estimated at $7bn  • Floods fear for Dresden  • 'Darkest hours' for Austrians  • Animals among flood victims    EXTRA INFORMATION In-depth: Floods ravage Europe  Gallery: Images of flooding  Map: Severely hit areas    YOUR SAY • Are you hit by the floods? E-mail stories  and read responses   RESOURCES • Aid contacts  • Dresden weather      QUICKVOTE Are governments doing enough to reduce the impact of flooding? Yes No View Results

Ninety of the 120 buildings were damaged in the town of Zalezlice, about 30 kms (18 miles) north of Prague. Thirty were destroyed altogether, Reuters reported. Cities near the German border were reporting even worse conditions, with many cut off.

"The situation is a catastrophe. This applies to southern and northern Bohemia ... Prague is comparatively well off, but only in a relative sense," said Foreign Minister Cyril Svoboda.

Emergency crews remained out in full force in Prague two days after it appeared the ancient Old Town would suffer the same fate as Mala Strana (Lesser Town), where several palaces and centuries old buildings were still under more than a metre (three feet) of water.

But the Vltava failed to breach the hastily erected defences, and water levels were down by Friday morning by more than two metres (six feet) from their peak.

Some of the 200,000-plus residents who were evacuated from their homes were allowed to return to several areas of the city that escaped the worst of the flooding, although in some cases just for a change of clothes.

The Prague Stock Exchange returned to trade after a two-day break. Located in the Old Town, the bourse suffered minor water damage to its basement.

However, the city was still coming to terms with the scale of the disaster. For example, the Prague subway system now estimates its damage toll to be two billion crowns ($64 million), with 17 stations closed due to the flooding.

City officials said it is difficult to estimate the total cost of the damage until the water recedes completely -- at least another four days -- but indications show it will be at least 60 billion crowns ($2 billion).

The Czech government is to launch an appeal for international bank loans and aid, including a request for money from the European Union, which the Czech Republic hopes to join.

Parliament's budget committee was to hold an emergency meeting to discuss how to fund a rebuilding process that is likely to run into the billions of dollars for the cash-strapped government.

Offers of foreign aid have begun to roll in, and EU President Romano Prodi is scheduled to tour Prague with President Vaclav Havel later in the day. The EU -- which the Czechs hope to join in 2004 -- has already promised some two billion crowns in relief.

"We believe that third quarter GDP will be impacted by 0.5 to 1.0 percentage points and for the whole year of 2002, a loss in GDP due to the floods will be about 0.3 percentage points," former Finance Minister Pavel Mertlik wrote in a research report for Raiffeisenbank, where he now works.

Actor Sean Connery, who is on location in Prague to make a film, said he was taken aback by the destruction the flooding brought to the picturesque city but heartened by the response of many to help in the crisis.

"I don't know if the world realises the depths of the disaster," said the former Bond star. (Connery shocked)

Kadir, a 35-year-old Indian elephant, had to be killed when attempts failed to rescue him at Prague's zoo

Downriver from Prague, a civilian was killed by shrapnel on Thursday when Czech forces blew up runaway barges that threatened to slam into bridges. Eleven people have been killed in flood-related incidents in the Czech Republic.

Zuzana Bluh, spokeswoman for the Czech Embassy in London, said there were flooding problems in towns throughout the country and cited the medieval town of Cesky Krumlov in southern Bohemia.

"The town is completely under water," Bluh said. "It is doubtful if many of the medieval buildings can withstand the damage."

Cesky Krumlov, a UNESCO-designated world historical town known as the "Renaissance jewel," was unlikely to be open for the rest of the tourist season after its historic centre was submerged, Bluh said.

-- CNN correspondent Mike Hanna contributed to this report.

Copyright 2002 CNN. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report.