Euro, dollar and crown – illustration photo.
Prague – Foreign investors held a record amount of Czech government bonds at the end of the first quarter, reaching 785.9 billion crowns. Their share of all issued Czech bonds amounted to 27.97 percent, an increase of 1.22 percentage points from the end of 2022. The total indebtedness of the Czech Republic through bonds reaches 2.8 trillion crowns. This follows from data published today by the Ministry of Finance.
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In a year-on-year comparison, the share of bonds held by foreign investors is 0.36 percentage points higher. However, the volume increased by 17.4 percent. This is due to the increasing indebtedness of the Czech Republic through bonds. Bonds are the main instrument for financing the state debt, which is mainly created by the accumulation of budget deficits.
The largest volume of Czech bonds was so far held by foreign investors at the end of September 2022, it was 741.2 billion crowns. So far, the highest share of foreign investors in issued Czech bonds was 51.35 percent in September 2017. The increase in the share of foreign investors at that time was mainly due to the bet on the strengthening of the koruna after the end of the CNB's foreign exchange interventions. From the end of 2021, the share of bonds held by foreign investors is below 30 percent.
State bonds worth 73.1 billion crowns are due by the end of this year, according to current data from the Ministry of Finance. The state replaces payable bonds by issuing new ones. This year, according to the State Debt Financing and Management Strategy, the Ministry of Finance wants to offer short- and medium-term bonds to the market for 400 to 500 billion crowns. In the first quarter, the Ministry of Finance sold bonds with a nominal value of 148.1 billion crowns.
The share of foreign investors holding Czech government bonds in recent years:
| Share of domestic government bonds (in percent) | Volume (in billions of crowns) | |
| 3/31/2017 | 47.26 | 717.6 |
| 6/30/2017 | 47.62 | 726.7 |
| 9/30/2017 | 51.35 | 693.2 |
| 31/12/2017 | 41.64 | 570.8 |
| 3/31/2018 | 35.47 | 518.2 |
| 6.30. 2018 | 39.78 | 580.4 |
| 9/30/2018 | 39.94 | 568.3 |
| 31/12/2018 | 41.81 | 579.7 |
| 3/31/2019 | 40.13 | 603.8 |
| 6/30/2019< /td> | 42.30 | 633.3 |
| 9/30/2019 | 41.74 | 615.3 |
| 31/12/2019 | 40.55 | 582.5 |
| 31.3.2020 | 39.39 | 614.9 |
| 30.6.2020 | 35, 35 | 691.7 |
| 30.9.2020 | 34.47 | 652.8 |
| 31.12.2020 | 31.18 | 586.9 |
| 31.3 .2021 | 33.25 | 692.6 |
| 6/30/2021 | 32.43< /td> | 720.6 |
| 9/30/2021 | 30.39 | 659.8 |
| 12/31/2021 | 26.53 | 608 |
| 3/31/2022 | 27.61 | 669.4 |
| 6/30/2022 | 28.55 | |
| 30/9/2022 | 28.11 | 741.2 |
| 12/31/2022 | 26.75 | 698.3 |
| 3/31/2023 | 27.97 | 785.9 |
Source: Ministry of Finance
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