Debt Portfolio Management Quarterly Report - 1st Half of 2023

The Ministry of Finance presents, in accordance with the calendar of published information, the Debt Portfolio Management Quarterly Report, which contains the state of fulfilment of the operational funding programme and issuance activity plans in relation to the announced strategic targets and limits specified in the Czech Republic Funding and Debt Management Strategy for 2023 published on 3 January 2023 and updated on 30 June 2023. It also includes regular quarterly evaluations of primary dealers for the period from the third quarter of 2022 to the second quarter of 2023, with KBC Bank NV / Československá obchodní banka, a. s., PPF banka a.s. and Société Générale / Komerční banka, a.s. being the three most active banks in this period.

The absolute nominal value of the state debt increased by CZK 149.6 billion to CZK 3,044.4 billion in the first half of the year. In relative terms to GDP, it reached 42.8% compared to 42.7% at the end of last year. The lower increase compared to the half-yearly state budget deficit of CZK 215.4 billion was also related, among other things, to the repayment of part of the loans granted to producers operating on the energy market in accordance with the Czech Government Resolution No. 586 dated 29 June 2022 on the scheme for providing loans to avert damage to the national economy.

During the first half of 2023, CZK-denominated medium-term and long-term government bonds in a total nominal value of CZK 287.4 billion were sold, including two new issues with maturity in 2031 and 2034. Fixed-rate medium-term and long-term government bonds were sold in a total nominal value of CZK 252.8 billion with an average residual time to maturity of 8.7 years and an average yield of 4.6% p.a.