The Czech Republic Funding and Debt Management Strategy for 2024
The Ministry of Finance presents to the public the Czech Republic Funding and Debt Management Strategy for 2024, in which the basic framework of the Czech Republic's financing programme and its issuing activities on the government bond market in 2024 is presented.
For 2024, the total state financing needs amount to CZK 468.8 billion, i.e. approximately 6.1% of GDP. Compared to 2023, this is a year-on-year decrease of CZK 191.2 billion. This is mainly due to a lower state budget deficit compared to its actual level in 2023 by CZK 36.5 billion, as well as lower state debt redemptions by CZK 159.1 billion. In 2024 and in the medium-term outlook, the total financing needs will be stabilised at level 6.1% and 6.2% of GDP for 2025 and 2026, respectively, which represents a significant decrease compared to the previous three years, when this share reached 11.3% of GDP in 2021, 9.4% of GDP in 2022 and 9.0% of GDP in 2023.
Financing needs will be covered mainly by issuing medium-term and long-term government bonds denominated in the local currency, through auctions on the domestic primary market in a total nominal value of CZK 300.0 to 400.0 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 6.4 years at the end of 2023, also remains valid. For the indicators of the net foreign currency exposure of the state debt, a limit of 10.0% (up to 12.0% in the short-term) of the total state debt is newly set for 2024.
An update of the Czech Republic Funding and Debt Management Strategy for the second half of the year will be published in June 2024, 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 2023 on 29 February 2024.