The Czech Republic’s foreign debt fell CZK 14.8bn year-on-year to CZK 4.355 trillion, despite a rise in the final quarter of the year of CZK 16.2bn. The figure as of December 31 represented 81.9 percent of GDP. České noviny reports that 73 percent of the total is private sector debt, with the state is responsible for the remainder of the borrowing carried out by government offices and companies in which the state has a majority. “At first glance, the foreign debt looks almost terrifying, but the number should be taken with a grain of salt,” the paper quotes CSOB analyst Petr Dufek as saying. He points out that the statistic includes foreign investors who buy Czech treasury bonds and deposit them in a Czech bank.
