The foreign debt of the Czech Republic is the highest in history.
At the end of last year, it reached 4.37 trillion CZK, a year-on-year increase of almost 875 billion CZK that is the growth of 25 % last year. The Czech debt to foreign countries is equivalent to 86.7 % of GDP as said by Czech National Bank on Friday.
The increase in debt is mainly due to the speculative purchases of Czech currency as a part of the CNB interventions. The foreign debt of the Czech Republic has almost doubled since 2009. Last year's foreign indebtedness was significantly affected by the termination of the CNB's interventions last April.
But it was now stated by Mr. Kovanda, the finance expert, that in the following quarters the Czech Republic's foreign indebtedness should be reduced because of the outflow of speculative capital that has only come into the Czech currency assets in connection with the CNB's intervention regime.
Development of the Czech foreign debt can be seen in the graph below: