FinMin raises this year's estimate of state borrowing to Kc280bn

CTK got the information from trustworthy sources.

Roughly Kc100bn from the total amount is to be used for the payment of state bond principal.

The ministry also prepares sale of state bonds to households. The fourth quarter is a realistic date for their sale, ministry spokesman Ondrej Jakob said.

According to earlier information, the nominal value of the state bonds for small clients will be Kc1. The buyers, however, will have to gain a certain minimum amount and will have to have an account at the Central Securities Registry (SCP).

At end-April, the ministry sold, for example, bonds for EUR1.5bn (Kc40bn) on foreign markets. It also wants to issue bonds for Kc22bn in June and for Kc12bn in July and August.

The ministry also plans to issue bonds for the completion of the D47 motorway between northern Moravia and Poland. The amount of money thus gained is to reach Kc8.4bn this year and Kc11.4bn in 2010.

The state debt is growing also owing to higher state budget deficits. The state is collecting less money in taxes due to the crisis, and budget gaps in the coming years will probably not fall below Kc150bn.

Finance Minister Eduard Janota said the Czech Republic would likely pay Kc54bn in interest on the debt this year against a planned Kc48bn.

Interest in 2010 will grow to Kc65bn, in 2011 to Kc76bn and in 2012 to Kc87bn.

The Czech Republic's state debt exceeded Kc1,000bn at end-March 2009.

Autor: ČTK
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