Debt Portfolio Management Quarterly Report - 1st - 3rd Quarter of 2024
The Ministry of Finance presents, in accordance with the calendar of published information, a regular Debt Portfolio Management Quarterly Report, which also includes regular quarterly evaluations of primary dealers of the Czech government securities for the period from the fourth quarter of 2023 to the third quarter of 2024. In the overall evaluation, the following three banking groups were the most active during this period: PPF banka a.s., KBC Bank NV / Československá obchodní banka, a. s. and Société Générale / Komerční banka, a.s.
The absolute value of state debt reached CZK 3,334.0 billion at the end of the third quarter of 2024, which represents an increase of CZK 223.1 billion compared to the end of 2023. It is mainly due to the sale of government bonds with a maturity of over one year and state treasury bills during the first three quarters of 2024 for the purpose of ongoing coverage of the state budget deficit, which reached CZK 181.7 billion at the end of September, and pre-financing of the remaining state debt redemptions, in particular regular redemption of the Government Bond of the Czech Republic, 2022–2024, VAR% and the Government Bond of the Czech Republic, 2021–2024, 0.00% in a total nominal value of CZK 68.1 billion.
During the first three quarters of 2024, the regular issuance activity of the state was carried out in the standard mode, when the CZK-denominated government bonds with maturities of over one year in a total nominal value of CZK 254.2 billion were issued with the average residual time to maturity of 10.7 years. This covered the total annual amount of the CZK-denominated state debt redemptions, thanks to which sufficient space was created for smooth coverage of the remaining financing needs for this year, which will be mainly represented by the actual performance of the state budget in the remainder of the year.
During the third quarter of 2024, subsequent tranches of a loan from the European Investment Bank in a total nominal value of CZK 5.0 billion were drawn to ensure credit financing for the modernization of selected sections of the railway corridors Prague – Brno – Přerov – Ostrava – Petrovice u Karviné – Polish border. In addition, the first tranche of a loan from the Council of Europe Development Bank was drawn in a total nominal value of CZK 2.0 billion to co-finance state budget expenditure on humanitarian benefits, solidarity contributions to Czech households and financial contributions to local authorities to provide accommodation for refugees in connection with the conflict in Ukraine. In total, new loans amounting to CZK 7.0 billion were drawn in the third quarter of 2024.