Debt Portfolio Management Quarterly Report - 1st Half of 2025
The Ministry of Finance presents, in accordance with the calendar of published information, a regular Debt Portfolio Management Quarterly Report, which also includes regular quarterly evaluations of primary dealers of the Czech government securities for the period from the third quarter of 2024 to the second quarter of 2025. In the overall evaluation, the following three banking groups were the most active during this period: PPF banka a.s., KBC Bank NV / Československá obchodní banka, a. s. and Société Générale / Komerční banka, a.s.
The absolute value of state debt reached CZK 3,504.2 billion at the end of the first half of 2025, which represents an increase of CZK 138.9 billion compared to the end of 2024. It is mainly due to the sale of government bonds with maturities of over one year and state treasury bills during the first half of 2025 to cover the state budget deficit, which reached CZK 152.4 billion at the end of June.
During the first half of 2025, the regular issuance activity of the state was carried out in the standard mode when the CZK-denominated government bonds with maturities of over one year in a total nominal value of CZK 193.0 billion were issued and an average time to maturity of 9.5 years. In the first half of 2025, the total annual amount of CZK-denominated medium-term and long-term government bonds redemptions was covered, thanks to which sufficient space was created for smooth coverage of the remaining financing needs through further issuance activity in the second half of the year.
In April 2025, the rating agency Morningstar DBRS assigned the Czech Republic its first-ever credit rating at AA level for long-term local and foreign currency liabilities with a stable outlook. The rating is underpinned by its generally effective institutions, prudent policy framework and a moderate government debt level. The agency further notes that the Czech Republic benefits from the European Union’s common policy response to address economic challenges, including those stemming from geopolitical risks.