The external debt of the Czech Republic increased by approximately €7.22 billion in the third quarter of this year, reaching approximately €208.08 billion by the end of September.
According to preliminary data from the Czech National Bank (CNB) the debt rose by €19.64 billion compared to the previous year and accounted for 64.2% of the gross domestic product (GDP). Three-quarters of the external debt once again fell on the private sector. The remaining quarter was attributed to public sector liabilities, which include government debts, obligations of private companies guaranteed by the government, and companies with predominant state participation.
Regarding specific sectors, the CNB recorded an increase in debt across all economic sectors during the reporting period. According to the CNB, the largest growth was observed in the external debt of government entities, primarily due to the purchase of government bonds by foreign investors. Government entities accounted for €35.57 billion of the total external debt.
The development of the banking sector’s debt, including the CNB, was also influenced by increased demand for the purchase of bank bonds by non-residents. The banking sector’s share of the debt reached €78.01 billion. The remaining €94.5 billion of the external debt was attributed to other sectors. By financial instruments, the most common forms of external debt financing during the reporting quarter were deposits and loans from related companies. Together, these accounted for 53.6% of the external debt, according to the CNB.
