Czech Finance Ministry launches sale of government bonds yielding 3.75% a year

The Czech Ministry of Finance has opened applications for the purchase of government savings bonds for the public. Unlike the spring issue, only one type of bond is currently on offer — three-month bonds carrying an annual yield of 3.75%.

If the holder does not request payout in advance, the bonds are automatically reinvested for a new term. Another perk for investors: income from government bonds is exempt from the 15% income tax.

First issue raised 74 billion crowns

The "Republic Bonds" project was relaunched by the Ministry of Finance earlier this year. In the spring round, alongside the three-month bonds, citizens were also offered two types of five-year bonds. According to the ministry, Czechs invested a combined 74 billion crowns in government bonds, of which 27.6 billion went into the three-month bonds alone.

The ministry plans to hold a third round of sales in the run-up to the New Year, when all three bond types will once again be available.

Detailed information on purchasing "Republic Bonds" is published by the Ministry of Finance at dluhopisy.gov.cz.

The project's history: from Babiš to Stanjura

The government savings bond programme previously ran in Czechia from 2018 to 2021, when the finance minister — just as today — was Alena Schillerová (ANO), serving under the government of Andrej Babiš. During that period, 13 rounds of issuance took place, through which citizens bought bonds worth a total of 80.1 billion crowns.

Her successor as finance minister, Zbyněk Stanjura (ODS), who headed the ministry from 2021 to 2025, suspended the issuance of bonds for the public almost immediately after taking office. The move was driven by a sharp rise in inflation at the time, which made servicing such bonds more expensive for the state than bonds placed with institutional investors.

Around Prague, based on reporting by novinky.cz