Debt Portfolio Management Quarterly Report - 1st Quarter 2016

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


  • Debt Portfolio Management
  • State Debt
  • Statistics

Stabilized Development of the State Debt

The Ministry of Finances continues to utilize extraordinary situation on financial markets during the first quarter of 2016 and carried out the sales of state government bonds for negative yields in total nominal value of CZK 55.8 billion, due to which the Ministry of Finances received extra revenue of the state budget amounting CZK 100.2 million. The short-term effect of this rational approach is the quarter-on-quarter increase of the state debt amounting CZK 21.7 billion against the end of 2015 and when compared to the end of 2013, the state debt increased by CZK 11.4 billion. The development of the state debt in particular months is not essential for the evaluation of the trend development of the state’s indebtedness, because it is burdened by the redemptions during the year, majority of which for thus year are concentrated in the second half of it.

The total revenue from the investment activity within the state treasury liquidity management after taking into account the extra revenue of the state budget due to the sale of the government bonds with negative yield amounted to CZK 156 million in Q1 2016, which represents an increase by 456% compared to the first quarter of 2015 and is 43.5% than revenue in whole 2013. The utilisation of extraordinarily budgetary favourable conditions on financial markets for the price of a short-term increase of the absolute value of the state debt and simultaneous effective pre-financing this year’s future redemptions of the government bonds is fully in accordance with the Strategy for 2016 and is fully consistent with the Ministry’s communication in this area with the participants of the financial markets and public.

The total gross issue of zero-coupon medium-term and long-term government bonds sold on primary market in the first quarter of 2016 amounted to CZK 38.1 billion, which means 58.8% of total gross issue on primary market amounting CZK 64.9 billion will not be burdened with interest expenditure of state budget. The total nominal value of net issue of medium-term and long-term government bonds amounted to CZK 28.6 billion in the first quarter of 2016, which is CZK 11.7 billion lower than in first quarter of the previous year.