FinMin plans CZK 99.9bn state bond issues to cover 2013 budget gap

Prague, March 10 (CTK) - The Czech Finance Ministry is set to issue Kc99.93bn worth of state bonds to cover deficit of the state budget which was approved with a Kc100bn gap for this year, the ministry said in a report to be submitted to the cabinet.

The government will discuss the bill on the state bond programme aimed to cover part of the 2013 deficit on Wednesday.

The bonds will mature in up to 55 years.

Setting the maximum maturity period enables the Finance Ministry to offer state bonds to investors with a maturity of one to 50 years and to respond flexibly to a fast-changing demand and instability on financial markets, the document said.

"State bonds to be issued on the domestic and foreign markets in 2013 will, however, predominantly have a maturity period of three to 15 years," the report said.

Bonds with a maturity of over 15 years will only be issued exceptionally, said the ministry.

Under the strategy of state debt financing and management, the Finance Ministry plans to borrow almost Kc231bn this year.