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
03 Jul
OMXC20
  Der har på det seneste været noget debat om DCF-analyser og andre måder at forsøge at finde en fai..
35
01 Jul
OMXC20
Der har været en del kritik og undren over mine indlæg - især om Jobindex. Her er forklaringen på, h..
20
02 Jul
CBRAIN
Til alle de, der er blevet støt over at jeg ændrede syn på cBrain for et lille års tid siden er her ..
16
06 Jul
I:DAX
Hvor bliver dine dommedagskommentarer af??   Måske du snart lærer at holde lidt igen med dine 50-80%..
15
04 Jul
JOBNDX
Endnu et langt indlæg og endnu en ny tråd. Men alligevel ingen svar på det væsentlige. Skal vi så ge..
14
01 Jul
OMXC20
Nej, børns loyalitet over for deres forældre svigter aldrig. Men hvis du har tjent lidt penge, så an..
13
03 Jul
 
Dette er ikke en hype af nedenstående selskaber, men en tak til en mand, der for mig at se har en go..
12
07 Jul
I:DAX
Jeg har på det seneste herinde skrevet en del om at jeg mente markedet skulle ned, og at markedet ge..
11
05 Jul
JOBNDX
Debat handler jo ikke nødvendigvis om at blive enige. Så ville de fleste politiske debatter være ove..
11
04 Jul
I:DAX
Desværre slipper vi ikke for at Grækenland kommer til at dominere den internationale politiske dagso..
11

Form 8.3 - Telecity Group Plc

07/07/2015 15:25:19
FORM 8.3   PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% O..

Form 8.3 - Phoenix IT Group Plc

07/07/2015 13:01:30
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Form 8.5 (EPT/RI) - Thorntons plc

07/07/2015 08:09:59
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Baring Private Equity Asia to Acquire Orangefield Group
2
Novartis' new heart failure medicine LCZ696, now called Entresto(TM), approved by FDA to reduce risk of cardiovascular death and heart failure hospitalization
3
Clearance of global agreement with AstraZeneca and receipt by Innate Pharma of $250m initial payment
4
JUNGBUNZLAUER AGREES TO ACQUIRE INGREDION MANUFACTURING FACILITY IN PORT COLBORNE, ONTARIO, CANADA
5
Touax announces the success of its offering of net share settled bonds convertible into new shares and/or exchangeable for existing shares (ORNANE), for an amount of approximately EUR 23 million

Buy and sell signals

  • Trend
  • Moneymachine

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.
 
08 July 2015 05:22:14
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150706.1 - EUROWEB6 - 2015-07-08 06:22:14 - 2015-07-08 05:22:14 - 1000 - Website: OKAY