Debt Portfolio Management Quarterly Report - 1st Quarter 2024
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 2024 published on 4 January 2024. It also includes regular quarterly evaluations of primary dealers for the period from the second quarter of 2023 to the first quarter of 2024, with PPF banka a.s., KBC Bank NV / Československá obchodní banka, a. s. and Société Générale / Komerční banka, a.s. being the three most active banks in this period.
The absolute value of state debt reached CZK 3,220.8 billion at the end of the first quarter of 2024, which represents an increase of CZK 109.9 billion compared to the end of 2023. It is mainly due to the sale of government securities during the first quarter of 2024 to cover the state budget deficit, which reached CZK 105.0 billion at the end of March 2024.
During the first quarter of 2024, the average residual time to maturity of medium-term and long-term government bonds issued increased dynamically, as government bonds in a total nominal value of CZK 78.7 billion were sold on the primary and secondary markets with an average residual time maturity of 11.2 years, which is 2.7 years more than in the same period in the previous year and 2.1 years more than in the whole of 2023.
During the first quarter of 2024, agency Moody's confirmed the current rating at Aa3 for long-term liabilities denominated in local and foreign currencies with a stable outlook. Among the strengths of the Czech Republic, this agency includes robust economic growth, a competitive economy and high quality of institutions. In addition, Fitch Ratings has also confirmed the current rating at AA- for long-term liabilities denominated in local and foreign currencies, while the agency also improved the outlook for the Czech Republic to stable. According to Fitch Ratings, the Czech economy has navigated the successive pandemic and energy price shocks without lasting effects on the long-term economic growth.