The Czech Republic Funding and Debt Management Strategy for 2023
The Ministry of Finance presents to the public The Czech Republic Funding and Debt Management Strategy for 2023, which quantifies the financing need of the state and presents the basic framework of the Czech Republic's financing and issuance programme for 2023.
For 2023, the planned financing needs amount to CZK 649.0 billion, i.e. approximately 9.2% of GDP. Its coverage will be ensured mainly by issues of medium-term and long-term government bonds denominated in domestic currency on the domestic market with a total nominal value in the range of CZK 400.0 to 500.0 billion. In terms of refinancing risk, the target value of 6.5 years for the average time to maturity of the state debt remains for the medium-term horizon.
On 18 January 2023, there will also be a pilot auction of state treasury bills denominated in the euro and registered in the Central Securities Depository Prague, which are also eligible for Eurosystem credit operations. In addition, state treasury bills denominated in the domestic currency and the euro could also be issued and sold in the form of multiple-price auction organized by the Czech National Bank.
An update of the Czech Republic Funding and Debt Management Strategy for the second half of the year will be published in June 2023, or possible quarterly updates will be published, in order to maintain the possibility of responding flexibly to current developments in financing needs and the situation on the financial markets.
The detailed evaluation in the area of development of the state debt, the issuance activity, the secondary market of government bonds, the development of interest expenditure of the state budget, the risk monitoring of debt portfolio, and annual performance evaluation of primary dealers will be contained in the Czech Republic Debt Management Annual Report for 2022, which will be published on 28 February 2023.