On November 26, 2008 the Minister of Finance decided on the structure and financing of the central government’s gross borrowing requirement in the 2009 budget year and approved the basic absolute and relative limits for issues on the domestic and foreign markets and for the active management of the debt portfolio in relation to other government liabilities and the financial assets (ref. no. 20/95845/2008). The defined operating framework in the form of this Funding and Debt Management Strategy for 2009 (the “Strategy”) is now a traditional contribution to the transparent implementation of government debt management policy and enables the Ministry of Finance (the “Ministry”) to operate flexibly on the domestic and foreign financial markets when actively securing funding to cover the central government’s borrowing requirement, which is a necessary condition for the smooth implementation of the government’s budgetary and fiscal policy.
The Strategy is based on and consistent with the draft act on the Czech Republic’s state budget for 2009, the Medium-term Outlook of the Czech Republic’s State Budget for 2010 and 2011, the Medium-term Expenditure Framework for 2010 and 2011, the internal Issuance Plan of Government Bonds for 2009 to 2011 and the Czech Republic’s Convergence Programme.
The Strategy is presented by the Debt and Financial Assets Management Department the “Department”), which is in charge of operations linked to state funding, managing the debt portfolio, liquidity management of the state treasury and investing cash funds of state financial assets.