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
04 May
 
- 6212 var henne i "VORES ALLES BANK" for at hæve lidt til den forlængede weekend og kunne ikke nære..
33
04 May
NOVO-B
Lad os tage Fremtidige produkter (pipeline) i alfabetisk orden:   Fiasp godkendes ultimo 2016 i USA ..
26
30 Apr
OMXC20CAP
Sell in may, and go ...   Det er blevet tid til en mindre opdatering. Jeg har været bortrejst, og sa..
23
03 May
C:PWTIUSDBR\SP
Der er vigtige tests på vej. Lad os se på dem!   Men først lige et ord om olien.   OLIE     Den dril..
22
03 May
BAVA
Nu svarer jeg lige på hovedtråden, i stedet for under alle de forskellige indlæg.   hvis i ellers læ..
21
28 Apr
BAVA
Så fik jeg pløjet data ind i et excelark, og her er konklussionerne:   data kommer fra et forsøg, hv..
18
04 May
EXQ
Godmorgen Jeg har modtaget nedenstående referat fra Lars Kongsbak af de spørgmål og svar som var opp..
15
03 May
FING-B
Jo, lidt naivt da LG allerede havde et sammenarbejde med FPC, men du lagde op til at LG havde måske ..
13
01 May
BAVA
Bavarian bliver ikke opkøbt. Stop nu med jeres drømme og løgne og bilde folk dette ind. Hvornår har ..
13
01 May
 
“The Big Five” hvor en er « gone missing»                  Ifølge det dokumnentet (DIP dokumentet), ..
13

Corona Extra Starts New Cinco de Mayo Tradition With the First Nationwide #LimeDrop

05/05/2016 14:15:25
Actor Diego Boneta partners with the number one imported beer in the United States to encourage fans to share photos of their best #LimeDrop CHICAG..

Alliance Trust PLC : Net Asset Value(s)

05/05/2016 13:31:29
ALLIANCE TRUST PLC At the close of business on Wednesday 4 May 2016, the unaudited net asset value per ordinary share of 2.5p, valued on a bid price ba..

Majedie Asset Management Ltd : Form 8.3 - VECTURA GROUP PLC

05/05/2016 10:40:51
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTI..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Octopus Titan VCT plc : AMENDMENT: Issue of Equity and Total Voting Rights
2
Sanofi Sends Letter to Medivation's Board of Directors
3
Ericsson and MTN bring LTE experience to subscribers in Ghana
4
NB Glbl Fltg Rte Inc : Conversion of Securities
5
Corona Extra Starts New Cinco de Mayo Tradition With the First Nationwide #LimeDrop

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   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.
 
05 May 2016 22:56:06
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20160502.2 - EUROWEB1 - 2016-05-05 23:56:06 - 2016-05-05 22:56:06 - 1000 - Website: OKAY