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CZECHIA: Government Prefers Domestic Euro Debt Over International Issues

CZECHIA
  • The Czech government is taking steps to ramp up domestic sales of foreign-currency debt as a way to help finance large public projects such as nuclear power plants, while staying away from Eurobond markets, Bloomberg report citing a senior Finance Ministry official. 
  • Their borrowing strategy will increasingly rely on bonds and T-bills denominated in euros but issued under domestic law, the Finance Ministry’s debt-management chief Petr Pavelek said in an interview. 
  • "Though tapping bond markets abroad remains an option, the ministry prefers raising euros through regular domestic auctions or even potential local syndicated offerings, according to Pavelek. The ministry has sold a total of €1.9 billion ($2 billion) of T-bills this year, mostly to roll over maturing debt and to “keep this segment active” and ready for higher volumes in the future, he said. There might be enough demand for about €3 billion of bills a year, Pavelek estimates." (BBG)

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