19/09/2012 08:14:00

Poland Aims To Finance 20% of 2013 Borrowing Needs This Year

By Patryk Wasilewski

WARSAW--Poland aims to finance about 20%, or 29 billion zlotys ($9.2 billion), of its next year's borrowing needs by the end of this year as it will have to draw heavily on its foreign exchange reserves in January and February to redeem maturing bond issues, a Polish deputy finance minister told reporters.

Wojciech Kowalczyk, who has managed Poland's debt issuance since August, added that the ministry has taken advantage of the positive sentiment in the Polish debt market and as a result will finish raising funds for this year in October, having already completed 95% of its plan.

"We would like to top the previous year's result, when we financed 18% of our needs [in the preceding year]," Mr. Kowalczyk told reporters. "If the market situation and demand remain stable we would like this year to finance 20%."

Mr. Kowalczyk added the government will use around 65% of its entire annual foreign-exchange spending in first two months of 2013.

Polish bonds rallied this year as the debt offered investors reasonable yields and moderate risk, while expected monetary easing by the country's central bank further increased their appeal.

Although Poland's economy is showing signs of a significant slowdown this year, with growth down to 2.4% in the second quarter, the government still expects this year's general government deficit to narrow to 3.5% of gross domestic product from 5.1% in 2012. Mr. Kowalczyk said the gap in 2013 could "approach 3%."

Earlier in September, the ministry began financing its PLN145 billion borrowing needs planned for 2013 and sold $2 billion in 10-year dollar-denominated paper in the U.S.

Further foreign-currency-denominated issues are possible later this year, Mr. Kowalczyk added, with the ministry considering the Japanese market. He said the country may issue a larger, euro or dollar-denominated benchmark bond in January or February, but overall foreign bond issues won't exceed 30% of Poland's total issuance plan.

Poland also wants to tap cash from other sources, this and next year, mainly from the World Bank and the European Investment Bank and it hopes to extend its $30 billion flexible credit line from the International Monetary Fund, Mr. Kowalczyk said.

The ministry is currently in talks with the World Bank about another EUR750 million tranche of credit, he added.

Write to Patryk Wasilewski at patryk.wasilewski@dowjones.com

(END) Dow Jones Newswires

September 19, 2012 03:14 ET (07:14 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
24 Feb
EI
1. entydig identifikation, f.eks nemid eller lign. 2. oprettelsesgebyr for skriveadgang 3. max 5 ind..
37
22 Feb
VWS
Jeg må jo så være een af lidelsesfællerne MENA.Min indgang til at læse med her på EI er at jeg gerne..
33
24 Feb
 
Da EI åbenbart ikke vil udelukke Hygge " KLOVNEN ", synes jeg at vi brugere her på EI skal gøre det...
29
23 Feb
PNDORA
      I tirsdags kom Pandora med regnskab. Her er en grundig og fokuseret gennemgang af de issues, j..
24
24 Feb
VWS
I en anden tråd er Vestas mulige/potentielle ordre i Mexico blevet berørt, hvilket har fået mig til ..
19
21 Feb
VWS
Jeg ville bruge lidt tid i dag, i et forsøg på at finde ud af, hvor langt Korytnica og Project 2 er ..
19
21 Feb
 
Jeg tror, de fleste læserer her på EI ser Millionærklubben på TV2 News.   Når man interessere sig fo..
19
22 Feb
VWS
MENA nu indberetter jeg dig til EI på en mail !!   stock`  
18
21 Feb
VWS
Vestas har også underskrevet et "memorandum of understanding" med US-DK Green Energy Ltd i Singapore..
17
24 Feb
FING-B
Hvor er du bare helt igennem en usympatisk person.   Ikke at jeg har aktier i Fingerprint. Men det æ..
15

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
RECORD YEAR FOR SIKA: GROWTH TARGETS EXCEEDED IN 2014
2
Altice SA : Vivendi accepts Numericable-SFR and Altice offer - Final agreements signed
3
Numericable-SFR : Vivendi accepts Numericable-SFR and Altice offer - Final agreements signed
4
BLACKPEARL ANNOUNCES FOURTH QUARTER AND FULL YEAR 2014 FINANCIAL AND OPERATING RESULTS
5
AFRICA OIL 2014 FOURTH QUARTER AND FULL YEAR FINANCIAL AND OPERATING RESULTS

Copyright Euroinvestor A/S 2015   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
27 February 2015 21:08:04
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150225.2 - EUROWEB4 - 2015-02-27 22:08:04 - 2015-02-27 21:08:04 - 1000 - Website: OKAY