FinMin to issue bonds worth Kc671bn to cover deficit and debts

published:

updated:
14.07.2014 12:55

Prague - The Czech Finance Ministry plans to issue bonds worth almost Kc671bn, of which over Kc192bn would be used to cover the budget deficit for this and last year, according to a bill on a state bond programme whose wording has been published on the government's website.

foto

Budova Ministerstva financí České republiky v Letenské ulici v Praze. ČTK Černý Jan, ČTK

"The issue of government bonds under this bill will increase the state debt by the nominal value of the government bonds sold in order to cover the state budget deficit, which means by Kc192.2bn at the most," the Finance Ministry has said.

The state budget deficit last year reached Kc81.3bn. For this year it is planned to climb to Kc112bn.

Under the bill, a total of Kc478.7bn from the bonds would be used to cover debts that will be due in 2015 and 2016. These include an issue of domestic bonds worth Kc58.9bn from 2005, a bond issue worth Kc65bn from 2010 and an euro bond issue worth EUR300m from 2009.

The ministry also said it had submitted a draft amendment on budgetary rules to the government at the end of May. The aim of the amendment is to enable the government to issue bonds to cover state budget deficits and state debts without the necessity to pass special legislation.

Finance Minister Andrej Babis has said recently that the state debt should stabilise around Kc1,700bn in the next two years.

In the first half of this year, the state debt fell by Kc35m to Kc1,683bn.

Written by:
www.ctk.cz

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