Czech Republic: The case of the lost decade

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In Prague, bond traders refer to it simply as “the 795”, often followed by a weary sigh. The Kr5 billion ($143 million) bond issued by the Czech ministry of finance in February has achieved a degree of notoriety usually reserved for only the most ground-breaking of fixed-income deals. Unfortunately, the 795 has gained its status for all the wrong reasons – doubt has been thrown on its maturity date – and this has brought into question the procedure by which the Czech government raises cash in international capital markets.

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