Czech foreign direct investment reached EUR 58.8 bln in 2006, up EUR 7.4 bln or 14% year on year (y/y), the Czech National Bank (CNB) said.

Portfolio investors last year held securities in the Czech Republic worth EUR 17.7 bln, equally divided between shares and bonds, said CSOB bank economist Petr Dufek.

Czech investment into foreign securities in 2006, however, was worth more than EUR 19.3 bln, Dufek added.

The difference was due to the Czech low interest rates, the lowest in the European Union at 2.50%, as well as a low liquidity of the Czech bond market and a restricted offer of high-quality shares, Dufek said.

The Czech Republic's overall foreign debt measured as a percentage of the country's gross domestic product (GDP) dropped to 38.0% in 2006 from 38.5% a year before, the CNB said.

The Czech foreign debt reached record EUR 44.3 bln at the end of last year, a EUR 5 bln increase compared to 2005, the CNB said.