The Czech Republic Funding and Debt Management Strategy for 2025
The Ministry of Finance presents to the public the Czech Republic Funding and Debt Management Strategy for 2025, in which the basic framework of the Czech Republic's financing programme and its issuing activities on the government bond market in 2025 is presented.
For 2025, the total state financing needs amount to CZK 563.5 billion, i.e. approximately 6.7% of GDP. In the medium-term outlook, the total financing needs will be stabilised at level 5.9% and 5.4% of GDP for 2026 and 2027, respectively, which is caused by decreasing state budget deficits and stabilized state debt redemptions in these years. Financing needs in 2025 will be covered mainly by issuing medium-term and long-term government bonds denominated in the local currency on the domestic primary market in a total nominal value in the expected range of CZK 350.0 to 450.0 billion. In terms of refinancing risk, the target value of 6.5 years for the average maturity of state debt over the medium-term horizon, which reached 6.3 years at the end of 2024, also remains valid.
As of 1 January 2025, Deutsche Bank AG has become the new primary dealer, thus expanding the group of primary dealers. For the year 2025, the number of primary dealers with whom the Primary Dealer Agreement for Czech Government Securities was concluded on the basis of the evaluation of the fulfillment of their obligations in 2024 is now 10. Goldman Sachs Bank Europe SE was also granted the status of recognized dealer of Czech government securities for 2025.
An update of the Czech Republic Funding and Debt Management Strategy for the second half of the year will be published in June 2025, or quarterly updates may 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 the development of the state debt, the issuance activity of the state, the government bond market, the development of interest expenditure of the state budget, the risk monitoring of debt portfolio and annual performance evaluation of Primary Dealers in Czech Government Securities will be published as part of the Czech Republic Debt Management Annual Report for 2024 on 28 February 2025.