The increase in government debt is mainly due to the standard issue of government bonds due to the pre-financing of koruna repayments of government debt.
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“The ministry sold government bonds with a maturity of over one year with a total nominal value of CZK 134.2 billion, thus ensuring coverage of more than 92 percent of the total repayments of koruna medium-term and long-term government bonds this year,” the report said.
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According to the material, another reason is the ongoing coverage of this year’s state budget deficit, which amounted to 59.1 billion crowns at the end of March.
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The Ministry of Finance also pointed out that in connection with the effectiveness of the amendment to the Budget Rules Act from 1 January, it also reports outstanding nominal values of government bonds after their maturity date. At the end of March, their value was 56 million crowns.
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In the update of the state debt financing strategy from the beginning of April, the ministry expects the state debt to increase by 262 billion to 2.728 trillion crowns this year.
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The state debt is made up of government debts and arises primarily from the accumulation of state budget deficits. It is financed by treasury bills, government bonds, direct loans or loans from the European Investment Bank.
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