In the second quarter, the Czech Republic’s foreign debt increased by CZK 28.1 billion, reaching a total of CZK 4.381 trillion. Compared to the previous year, this represented a decrease of 249.8 billion. As of the end of June, this foreign debt amounted to 61.6 % of the country’s gross domestic product (GDP), which is the total economic output of the Czech Republic. These figures are based on preliminary data released today by the Czech National Bank (CNB).
Of the foreign debt, more than 77 % was attributed to the private sector, while the remaining 22.6 % comprised liabilities of the public sector. The public sector’s obligations encompass government sector debt, private entities guaranteed by the government, and entities with a majority state stake.
The CNB noted that the second quarter saw an increase in the debt of the government and banking sectors. The government sector’s foreign debt rose due to foreign investors purchasing government bonds, while the banking sector experienced growth in deposits received from abroad and an increase in the amount of bank bonds held by foreign lenders.
Consequently, during this period, the banking sector accounted for 39.3 % of the total indebtedness, while the government sector made up 15.4 %. Foreign liabilities of other sectors decreased to 45.3 % of the total debt.
In terms of the types of debt instruments, deposits and loans from affiliated entities were the most common forms of financing in foreign debt, collectively constituting 51.4 % of foreign debt as of the end of June.