The Czech Republic’s international investment position and external debt
as of 30 June 2025
In 2025 Q2, the Czech Republic’s international investment position (i.e. the balance of its financial assets and liabilities in respect of non-residents) recorded an increase in deficit of CZK 139.3 billion to CZK 835.8 billion. The deficit dropped by CZK 21.1 billion in year-on-year terms and represented 10.1% of GDP at current prices. The gross external debt of residents of the Czech Republic amounted to CZK 5,355.5 billion at the end of Q2 (i.e. 64.7% of GDP). It recorded a year-on-year increase of CZK 372.9 billion. The net external debt of residents of the Czech Republic amounted to CZK -617.2 billion at the end of Q2. Net external debt is the difference between external debt liabilities and assets. A negative value thus indicates that residents of the Czech Republic were in a net creditor position vis-à-vis the rest of the world (7.5% of GDP).
Chart 1 – International investment position
(CZK billions, end-of-period balance)
External assets decreased by CZK 78.8 billion to CZK 9,736.7 billion in Q2. The assets rose by CZK 673.2 billion year on year.
Chart 2 – Structure of investment position assets
(CZK billions, end-of-period balance)
The external assets of other sectors (excluding the government and banking sectors, and excluding portfolio investment and derivatives) decreased by CZK 81.8 billion in Q2 due mostly to a decrease in assets in the form of trade credits and advances (CZK 44 billion) and a drop in inter-company loans provided within direct investment of CZK 42.4 billion. The external assets of other sectors (excluding the government and banking sectors, and excluding portfolio investment and derivatives) accounted for 39.5% of total investment position assets.
The external assets of the banking sector (including the CNB and excluding portfolio investment and derivatives) decreased by CZK 46.5 billion in Q2, constituting 42.8% of total assets. This was largely due to a decline in the CNB’s reserve and other assets, which amounted to CZK 65.8 billion. The share of the CNB’s reserve and other assets in total investment position assets was 35.2%.
The value of domestic investors’ holdings of foreign securities (portfolio investment) rose by CZK 38.7 billion mainly due to purchases of ownership interests and bonds by non-bank domestic investors. Their share in total investment position assets was 15%.
The positive fair value of derivatives rose by CZK 6.2 billion in Q2, reaching 1.6% of total investment position assets.
The external assets of the general government sector (excluding portfolio investment and derivatives) increased by CZK 4.7 billion in Q2 and the share of general government assets in total assets amounted to 1.2%.
Investment position external liabilities rose by CZK 60.5 billion in Q2 to CZK 10,572.5 billion at the end of June 2025. In year-on-year terms, the liabilities increased by CZK 652.1 billion.
Chart 3 – Structure of investment position liabilities
(CZK billions, end-of-period balance)
Direct investment liabilities increased by CZK 12.8 billion in Q2, accounting for 58.5% of total external liabilities. Domestic companies drew loans from foreign parent, affiliate and subsidiary companies, while at the same time foreign investors reduced their holdings in domestic subsidiaries.
Developments in portfolio investment liabilities abroad were driven mostly by purchases of domestic short-term bank debt securities by non-residents. The resulting volume of liabilities increased by CZK 167.4 billion, with portfolio investment representing 17.3% of total liabilities.
The negative fair value of derivatives declined by CZK 1.5 billion to 1.4% of total liabilities in Q2.
The Czech Republic’s external debt (the sum of its liabilities with stipulated maturity) increased by CZK 69.6 billion in Q2, totalling CZK 5,355.5 billion at the end of June 2025. In year-on-year terms, the debt increased by CZK 372.9 billion. As regards the time structure of the external debt, the share of liabilities with original maturities longer than one year was 50.3% of total debt liabilities.
Chart 4 – External debt by debtor
(CZK billions, end-of-period balance)
External debt in the banking sector, including the CNB, increased by CZK 91.1 billion in Q2. The banking sector, including the CNB, accounted for 39.1% of the total external debt.
Turning to the sectoral breakdown of the external debt, in Q2, there was a decrease in debt in other sectors (CZK 28.9 billion), driven mainly by a decrease in loans accepted (CZK 28.1 billion) from non-residents (both direct and other investors). Other sectors accounted for 45.3% of the total external debt.
General government external debt rose by CZK 7.3 billion in Q2 and its share in total external debt amounted to 15.7%.
Turning to the breakdown of the external debt by instrument, deposits from non-residents and loans from foreign parent, affiliate and subsidiary companies are the most frequently used forms of debt financing (together accounting for 54.8% of the external debt).
Chart 5 – External debt by instrument
(CZK billions, end-of-period balance)
The external debt of the private sector accounted for 77.7% of the total external debt. Public sector liabilities accounted for the rest (22.3%). They comprise liabilities of the government, liabilities of private entities guaranteed by the government and liabilities of entities majority-owned by the state.
Chart 6 – External debt of public and private sectors
(CZK billions, end-of-period balance)
As of 30 June 2025, debt service payments of principal and interest on long-term external liabilities planned for 2025 totalled CZK 182.5 billion (of which principal amounted to CZK 157.3 billion and interest to CZK 25.2 billion). For 2026, total debt service payments of CZK 536.1 billion (including interest) are planned, with a total of CZK 2,264.2 billion scheduled for the following years.
Chart 7 – Debt service on medium- and long-term external debt liabilities
(CZK billions)
