Debt Management in the Czech Republic: Formation in the Nineties and the Current State

Abstract

Matalik and Slavik examine the evolution of debt management in the Czech Republic. As with many other features of the Czech economy, changes have been dramatic in this field in connection with the transition from central planning to market mechanisms. The paper outlines the shifting policy focus: from the need to establish treasury bills and government bond markets (and to ensure and promote their liquidity) in the early stages of the process to the fine tuning of debt risk management in the later years. The latter issue became relevant in connection with the increase in the outstanding debt which induced policies aimed at decreasing the government dependence on the domestic bond market.