Poland to Meet Half of 2012 Borrowing Needs by End-March
Poland’s Finance Ministry said it will meet half of this year’s borrowing requirements by the end of March and plans to complete most of its 2012 plan by the end of June in case Europe’s debt crisis roils markets.
The ministry has covered 47 percent of the plan after an auction of two-year bonds today, Deputy Finance Minister Dominik Radziwill told reporters in Warsaw. It would like to cover most of it in the first half because the European Union’s debt crisis clouds the situation on financial markets, he added.
“We want to speed up the pace at which we’re covering our borrowing needs,” Radziwill said. “That’s why we’re putting a large amount of bonds up for sale right now.”
Poland was the only EU member to dodge recession in 2009 after the collapse of Lehman Brothers Inc. triggered a global recession. Local assets are benefiting as the government overhauls the pension system and increases levies to trim this year’s budget deficit to within the EU limit of 3 percent of economic output, Finance Minister Jacek Rostowski said.
“The trend is clear,” Rostowski told the same news conference. “The credibility of Poland’s economy and public finances is improving.”
Five-year credit default swaps, which insure against non- payment, dipped below France’s for the first time this week, figures from data provider CMA show. French five-year CDS trade at 171 basis points, compared with 169 for Poland.
Poland sold 3.99 billion zloty ($1.26 billion) of the zero- coupon bonds at today’s auction, the maximum planned, after bids of 7.15 billion zloty. It sold 300 million zloty more at a supplementary auction.
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