The government is proposing a further increase in the state budget deficit to CZK500bn. The main reason is the rise in spending to support the economy at this time of crisis. In our opinion, however, the government will continue to have problems implementing expenditure plans, which will lead to a deficit of only CZK400bn. This also implies less additional CZGB issuance, further reduced by using state financial assets and the drawdown of EUR loan programs. In our view, the MinFin has only CZK56.7bn left to issue by the end of the year, which shouldn’t be a problem to place.