Definition and Measuring

Debt and Financial Assets Department manages the gross state debt, which is the main part of central government debt and represents approximately 95% of the total gross indebtedness of the general government..
To the scope of the state debt does not include the extra-budgetary funds, social security and health insurance funds of regions and municipalities, as well as the state guarantees, administered directly by the state budget.

A. Unconditional obligations of the state (total state debt)may be divided into:

I. domestic debt and foreign debt (according to the place of origin of the debt instrument):

Domestic debt is covered by:

•  Treasury bills
•  Treasury bonds
•  Other domestic instruments, e.g. repo operations, short-term borrowings, lending facilities

Foreign debt consists of:

•  Foreign Bond Issues
•  Loans from the European Investment Bank
•  Promissory notes covering the Czech Republic ownership interests in the IBRD and EBRD

II. marketable debt and non-marketable debt (according to tradability on financial markets):

Marketable debt:

•  Treasury bills
•  Treasury bonds
•  Foreign Bond Issues
•  Eventually other sources of funding

Non-marketable debt:

• After the 1993 division of Czechoslovakia, the Czech Republic took over 2/3 of former federal debt on the state debt books. Since the foundation of the Czech Republic, new domestic categories of non-marketable obligations have not arisen.
• Until 1998, non-marketable debt was also part of domestic debt (e.g., direct credit from the central bank and direct credits from commercial banks). For a certain period of time, the CKZ-denominated promissory notes covering the ownership interest in the IBRD were involved in the non-marketable debt. Ministry is currently not using these instruments.
• At present, the entire non-marketable debt consists of the loans from the European Investment Bank and savings government bonds.

B. Contingent liabilities (state guarantees)

State guarantees are broken down into those granted under Act No.218/2000, Budgetary Rules Act and Some Related Acts Amendment Act, whereas these guarantees have a system character and the heaviest burden lies in the guarantees for the bank sector. Guarantees are also granted for export promotion under Act No. 58/1995, guarantees for the Railway Infrastructure Administration, state organization under the Act No. 77/2002.

It is necessary to stress that the management and administration of state guarantees of the government are not within the competence of the Debt and Financial Assets Management Department. State guarantees are planned, administered and implemented directly by the State Budget Department of the Ministry of Finance.