The Czech Republic’s international investment position and external debt
as of 30 September 2025
In 2025 Q3, 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 23.7 billion to CZK 808.1 billion. The deficit rose by CZK 3.9 billion in year-on-year terms and represented 9.6% of GDP at current prices. The gross external debt of residents of the Czech Republic amounted to CZK 5,550.7 billion at the end of Q3 (i.e. 66% of GDP). It recorded a year-on-year increase of CZK 372.6 billion. The net external debt of residents of the Czech Republic amounted to CZK −579.6 billion at the end of Q3. 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 (6.9% of GDP).
Chart 1 – International investment position
(CZK billions, end-of-period balance)
External assets increased by CZK 292.5 billion to CZK 10,034.7 billion in Q3. The assets rose by CZK 691.8 billion year on year.
Chart 2 – Structure of investment position assets
(CZK billions, end-of-period balance)
The external assets of the banking sector (including the CNB and excluding portfolio investment and derivatives) increased by CZK 143.6 billion in Q3, constituting 43% of total assets. This was largely due to a rise in the CNB’s reserve and other assets, which amounted to CZK 120.9 billion. The share of the CNB’s reserve and other assets in total investment position assets was 35.3%.
The value of domestic investors’ holdings of foreign securities (portfolio investment) rose by CZK 119.6 billion mainly due to purchases of foreign units and bonds by non-bank domestic investors. Their share in total investment position assets was 15.7%.
The external assets of other sectors (excluding the government and banking sectors, and excluding portfolio investment and derivatives) increased by CZK 24.3 billion in Q3 due mostly to an increase in assets in the form of trade credits and advances (CZK 18.5 billion) and short-term loans (CZK 16.5 billion). On the other hand, foreign deposits dropped by CZK 11 billion. The external assets of other sectors (excluding the government and banking sectors, and excluding portfolio investment and derivatives) accounted for 38.6% of total investment position assets.
The positive fair value of derivatives declined by CZK 0.9 billion in Q3 and accounted for 1.5% of investment position assets.
The external assets of the general government sector (excluding portfolio investment and derivatives) increased by CZK 5.8 billion in Q3 and the share of general government assets in total assets amounted to 1.2%.
Investment position external liabilities rose by CZK 268.8 billion in Q3 to CZK 10,842.8 billion at the end of September 2025. In year-on-year terms, the liabilities increased by CZK 695.7 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 long-term debt securities issued by other sectors. The resulting volume of liabilities increased by CZK 104.2 billion, with portfolio investment representing 17.8% of total liabilities.
The external liabilities of the banking sector (including the CNB and excluding portfolio investment and derivatives) increased by CZK 97.3 billion in Q3, constituting 15.6% of total assets.
Direct investment liabilities increased by CZK 58.5 billion in Q3, accounting for 57.7% of total external liabilities. Domestic companies drew loans from foreign parent, affiliate and subsidiary companies, while at the same time foreign investors increased their holdings in domestic subsidiaries.
The negative fair value of derivatives decreased by CZK 8.4 billion in Q3, accounting for 1.3% of total liabilities.
The Czech Republic’s external debt (the sum of its liabilities with stipulated maturity) increased by CZK 193.8 billion in Q2, totalling CZK 5,550.7 billion at the end of September 2025. In year-on-year terms, the debt increased by CZK 372.6 billion. As regards the time structure of the external debt, the share of liabilities with original maturities longer than one year was 49.7% 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 124.8 billion in Q3. The banking sector, including the CNB, accounted for 39.9% of the total external debt.
The sectoral breakdown of the external debt also showed an increase in debt of other sectors (CZK 75.6 billion) in Q3. The increase was driven mainly by the sale of debt securities to non-residents. Other sectors accounted for 45.1% of the total external debt.
General government external debt fell by CZK 6.7 billion in Q3 and its share in total external debt amounted to 15.0%.
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 55.2% 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 77.6% of the total external debt. Public sector liabilities accounted for the rest (22.4%). They comprise liabilities of general 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)
