Investment Portfolios

Dept 20 - Debt and Financial Assets Management Department
Dept 20 - Debt and Financial Assets Management Department

Published

  • State Debt
Updated 7-3-2014 11:30 AM
  • Overall content update

State Financial Assets include also pension and nuclear investment portfolios, which are administrated by the Ministry of Finance and represent held to maturity portfolios.

The investment of balances of the nuclear account, the nuclear portfolio, is carried out by the Ministry of Finance within the State Financial Assets based on the provisions of Section 27 of Act No. 18/1997, Coll., on the peaceful use of nuclear energy and ionizing radiation (the Nuclear Act).

The investment of balances of the separate reserve account for pension reform, the pension portfolio, is carried out by the Ministry of Finance within the State Financial Assets based on the provisions of Section 36 of Act No. 218/2000, Coll., Budgetary Rules Act and Some Related Acts Amendment Act.

The balances of these accounts are invested conservatively and exclusively into domestic treasury bonds or bills through direct purchases and/or via reverse repo operations, where the T-bills or Czech National Bank bills are used as collateral. The returns from these investments represent direct revenue of the budgetary chapter “Operation of State Financial Assets”. The cumulative resources from these portfolios will cover part of the ring-fenced State Budget expenditure on nuclear waste treatment and the pension reform, respectively.