Czech Republic foreign debt reaches 6.1 trillion CZK

The Czech Republic's foreign debt rose to 6.1 trillion CZK in the second quarter. The majority of this debt is held by the private sector, which accounted for 76.3 percent of the total foreign indebtedness during the period.

The public sector's share of the foreign debt was 23.7 percent. Within the government institutions sector, foreign debt increased by 13.1 billion CZK, representing 14.9 percent of the total debt. The banking sector, including the Czech National Bank, saw its foreign debt rise by 141 billion CZK, making up 41.6 percent of the total.

Other sectors saw an increase of 101.8 billion CZK, which the central bank attributed to rising loans and trade credits toward non-resident companies, debt security obligations, and inter-company loans. The most common forms of debt financing were non-resident deposits and loans from foreign parent, sister, or subsidiary companies, totaling 55.3 percent of the debt.