The Czech Republic’s international investment position and external debt

as of 31 December 2025

Simultaneously with the publication of the 2025 Q4 investment position and external debt figures, revised data for 2025 Q1–Q3 and all quarters of 2024 are being published. The revised data mainly take into account updated data from statements submitted to the CNB by financial and non-financial entities, the annual sample survey of foreign direct investment in the country and domestic direct investment abroad.

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In 2025 Q4, 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 8.6 billion to CZK 836.6 billion. The deficit rose by CZK 242.0 billion in year-on-year terms and represented 9.8% of GDP at current prices. The gross external debt of residents of the Czech Republic amounted to CZK 5,682.8 billion at the end of Q4 (i.e. 66.5% of GDP). It recorded a year-on-year increase of CZK 484.1 billion. The net external debt of residents of the Czech Republic amounted to CZK −567.6 billion at the end of Q4. 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 (6.6% of GDP).

Chart 1 – International investment position
(CZK billions, end-of-period balance)

External assets increased by CZK 218.2 billion to CZK 10,436.8 billion in Q4. The assets rose by CZK 517 billion year on year.

Chart 2 – Structure of investment position assets
(CZK billions, end-of-period balance)

The value of domestic investors’ holdings of foreign securities (portfolio investment) rose by CZK 83.7 billion, mainly due to purchases of foreign units and bonds by non-bank domestic investors. Their share in total investment position assets was 15.9%.

The external assets of other sectors (excluding the government and banking sectors, and excluding portfolio investment and derivatives) increased by CZK 62.7 billion in Q4, due mainly to a rise in assets related to foreign direct investment. 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) increased by CZK 54.5 billion in Q4, constituting 41.8% of total assets. This was largely due to a rise in the CNB’s reserve and other assets, which amounted to CZK 98.3 billion. The share of the CNB’s reserve and other assets in total investment position assets was 34.9%.

The positive fair value of derivatives declined by CZK 9.3 billion in Q4 and accounted for 1.4% of investment position assets.

The external assets of the general government sector (excluding portfolio investment and derivatives) increased by CZK 26.4 billion in Q4, and the share of general government assets in total assets amounted to 1.4%.

Investment position external liabilities rose by CZK 226.8 billion in Q4 to CZK 11,273.4 billion at the end of December 2025. In year-on-year terms, the liabilities increased by CZK 759 billion.

Chart 3 – Structure of investment position liabilities
(CZK billions, end-of-period balance)

Developments in portfolio investment liabilities abroad were driven mostly by non-residents’ purchases of domestic debt securities issued by commercial banks and general government. The resulting volume of liabilities increased by CZK 192.9 billion, with portfolio investment representing 18.8% of total liabilities.

Direct investment liabilities increased by CZK 69.9 billion in Q4, accounting for 57.9% of total external liabilities.

The external liabilities of the banking sector (including the CNB and excluding portfolio investment and derivatives) decreased by CZK 16 billion in Q4, constituting 14.9% of total liabilities.

The negative fair value of derivatives declined by CZK 8.5 billion in Q4, accounting for 1.2% of total liabilities.

The Czech Republic’s external debt (the sum of its liabilities with stipulated maturity) increased by CZK 127.2 billion in Q4, totalling CZK 5,682.8 billion at the end of December 2025. In year-on-year terms, the debt increased by CZK 423.2 billion. As regards the time structure of the external debt, the share of liabilities with original maturities longer than one year was 50.5% 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 87.7 billion in Q4. The banking sector, including the CNB, accounted for 40.5% of the total external debt.

General government external debt rose by CZK 67.8 billion in Q4 and its share in the total external debt amounted to 15.9%.

The debt of other sectors (CZK 28.2 billion) decreased in Q4, mainly due to a decline in trade credits and advances of other sectors vis-à-vis non-residents (CZK 17 billion). Other sectors accounted for 43.6% of the total external debt.

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 53.8% of the external debt).

Chart 5 – External debt by instrument
(CZK billions, end-of-period balance)

The external debt of the private sector constituted 76.5% of the total external debt. Public sector liabilities accounted for the rest (23.5%). They comprise liabilities of general government, liabilities of private entities guaranteed by the government and liabilities of entities majority-owned by the state classified outside the general government sector.

Chart 6 – External debt of public and private sectors
(CZK billions, end-of-period balance)

As of 31 December 2025, debt service payments of principal and interest on long-term external liabilities planned for 2026 totalled CZK 383.7 billion (of which principal amounted to CZK 323.2 billion and interest to CZK 60.5 billion). For 2027, total debt service payments of CZK 593 billion (including interest) are planned, with a total of CZK 2,199.6 billion scheduled for the following years.

Chart 7 – Debt service on medium- and long-term external debt liabilities
(CZK billions)