Prague - The Czech Republic´s external debt grew by Kc262.5bn to Kc2,215bn last year and it made up 57.15 percent of gross domestic product (GDP), the Czech National Bank (CNB) said today.
Q4 debt increased by Kc250.2bn.
External debt was primarily affected by an increase in the short-term liabilities of banks, mainly in the form of a rise in short-term deposits from foreign banks. The share of the banking sector in the total debt rose to 27.2 percent.
In addition to foreign investment in corporate bonds, growth in the external debt of the corporate sector was fostered by short-term trade credits. The external liabilities of the corporate sector accounted for 44.8 percent of the total external debt, the central bank said.
The government´s external debt was due to purchases of government bonds by foreign investors and the drawdown of European Investment Bank (EIB) loans for financing investment in infrastructure. The external liabilities of the government sector accounted for 28 percent of the total external debt.
Turning to the external debt structure by instrument, an increase in foreign liabilities was visible in larger shares of non-resident deposits, money market instruments and trade credits. The shares of the other types of instruments in the total debt recorded a decline. Bonds and loans were used the most, accounting for 63 percent of the external debt, the CNB said.
The share of the private sector in long-term external debt was 47.2 percent in Q4. Public sector liabilities accounted for the rest (52.8 pct). They comprise liabilities of, or guaranteed by, the government and liabilities of entities majority-owned by the state with maturities longer than one year.
The Czech Republic´s international investment position (the balance of its financial assets and liabilities in respect of non-residents) recorded a Kc63.1bn decrease in deficit to Kc1,771.8bn in the last quarter of 2013. The ratio of the investment position deficit to GDP at current prices declined to 45.7 percent. In a year-on-year comparison, the deficit was Kc103.8bn lower.
External financial assets rose by Kc355.2bn in Q4 to Kc3,181.2bn. The year-on-year increase in assets amounted to Kc485bn and was due mainly to a growth in the external assets of the banking sector, the CNB´s international reserves and Czech direct investment abroad, the CNB said.
Simultaneously with the publication of the figures on the Czech Republic´s investment position and debt as of December 31, 2013, revised data for previous quarters of 2013 and 2012 were released. The revised data mainly reflect the results of the CNB´s annual survey of foreign direct investment for 2012 and updated statements on portfolio investment, the CNB said.