Czech government debt largest in history, exceeding CZK 2.4 trillion

The Czech Republic’s government debt rose to a record CZK 2.47 trillion last year, the Ministry of Finance informed on Thursday. It is the highest level ever in the history of the country. The debt for 2020 reached CZK 2.05 trillion.

The increase is primarily the result of the ministry issuing bonds to cover last year’s budget deficit and take advantage of favourable conditions on financial markets to pre-finance the planned debt repayments.

The national debt is made up of government debts and is mainly generated by the accumulation of state budget deficits. It is financed by treasury bills, government bonds, direct loans or loans from the European Investment Bank.

Author: Ruth Fraňková