The Czech Republic’s international investment position and external debt
as of 31 March 2026
In 2026 Q1, the Czech Republic’s international investment position (i.e. the balance of its financial assets and liabilities in respect of non-residents) recorded a decrease in deficit of CZK 72.1 billion to CZK 764.4 billion. The deficit rose by CZK 66.6 billion in year-on-year terms and represented 8.8% of GDP at current prices. The gross external debt of residents of the Czech Republic amounted to CZK 5,837.5 billion at the end of Q1 (i.e. 67.4% of GDP). It recorded a year-on-year increase of CZK 549 billion. The net external debt of residents of the Czech Republic amounted to CZK -577.7 billion at the end of Q1. 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 (6.7% of GDP). The international investment position and external debt in 2026 Q1 were significantly affected by the January 2026 listing of a foreign subsidiary of a Czech resident on the Amsterdam stock exchange. The statistical recording of this transaction was reflected in an increase in cross-border stocks of assets and liabilities in the areas of foreign direct investment and portfolio investment.
Chart 1 – International investment position
(CZK billions, end-of-period balance)
External assets increased by CZK 903.6 billion to CZK 11,340.4 billion in Q1. The assets rose by CZK 1,330.5 billion year on year.
Chart 2 – Structure of investment position assets
(CZK billions, end-of-period balance)
The external assets of other sectors (including foreign direct investment, but excluding the government and banking sectors and excluding portfolio investment and derivatives) increased by CZK 598.4 billion in Q1, due mainly to a rise in assets related to foreign direct investment. Foreign direct investment assets increased mainly due to the listing of a foreign subsidiary of a Czech resident on the Amsterdam stock exchange. After adjustment for exchange rate and price effects, the increase amounted to CZK 530.4 billion. The external assets of other sectors accounted for 41.6% of total investment position assets.
The external assets of the banking sector (including the CNB and excluding portfolio investment and derivatives) increased by CZK 161.6 billion in Q1, constituting 39.9% of total assets. This was largely due to a rise in the value of commercial banks’ assets, which amounted to CZK 86.8 billion. At the same time, the CNB’s reserve assets and other assets increased by CZK 74.8 billion.
The value of foreign securities held by residents (portfolio investment) rose by CZK 130.6 billion, driven by purchases of foreign equities by domestic investors, and accounted for 15.8% of total investment position assets.
The positive fair value of derivatives increased by CZK 15.1 billion in Q1.
The external assets of the general government sector (excluding portfolio investment and derivatives) fell by CZK 2.1 billion in Q1.
Investment position external liabilities increased quarter on quarter by CZK 831.5 billion to CZK 12,104.9 billion in Q1. In year-on-year terms the liabilities increased by CZK 1,397.1 billion.
Chart 3 – Structure of investment position liabilities
(CZK billions, end-of-period balance)
Direct investment liabilities increased by CZK 615.7 billion in Q1, accounting for 59% of total external liabilities. The significant increase in liabilities was related to the listing of a foreign subsidiary of a Czech resident on the Amsterdam stock exchange; the newly listed Dutch company is the parent company of a major Czech industrial group.
The external liabilities of the banking sector (including the CNB and excluding portfolio investment and derivatives) increased by CZK 187.5 billion in Q1, constituting 15.4% of total liabilities.
Developments in portfolio investment liabilities vis-à-vis the rest of the world were driven mainly by non-residents’ sales of domestic short-term debt securities issued by Czech commercial banks. The resulting volume of liabilities decreased by CZK 44.5 billion, with portfolio investment representing 17.2% of total liabilities.
The negative fair value of derivatives rose by CZK 44 billion in Q1, accounting for 1.4% of total liabilities.
The Czech Republic’s external debt (the sum of its liabilities with stipulated maturity) increased by CZK 154.6 billion in Q1, totalling CZK 5,837.5 billion at the end of March 2026. In year-on-year terms, the debt increased by CZK 549 billion. As regards the time structure of the external debt, the share of liabilities with original maturities longer than one year was 49.5% 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 90.5 billion in Q1. The banking sector, including the CNB, accounted for 41% of the total external debt.
In Q1, the debt of other sectors increased by CZK 69.4 billion, driven mainly by growth in trade credits and advances of other sectors vis-à-vis non-affiliated enterprises abroad (CZK 40.6 billion). Other sectors accounted for 43.6% of the total external debt.
General government external debt fell by CZK 5.3 billion in Q1 and its share in total external debt amounted to 15.4%.
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 55.4% of the external debt).
Chart 5 – External debt by instrument
(CZK billions, end-of-period balance)
The external debt of the private sector constituted 76.8% of the total external debt. Public sector liabilities accounted for the rest (23.2%). They comprise liabilities of the general government sector, liabilities of private entities guaranteed by general 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)
