BRE Bank calculates level of available NBP revaluation reserves

BRE Bank analysts estimate that the 2004 budget deficit will amount to between zł. 55-57 billion, which will constitute over 7% of GDP. "This places us within the level signaled by former Finance Minister Jarosław Bauc and shows the real progress of restructuring public finances," said the bank's chief economist Janusz Jankowiak. He added that it would be possible to free about zł. 3 billion from the the National Bank of Poland's (NBP) revaluation reserves in 2004, instead of the zł. 9 billion demanded by Finance Minister Grzegorz Kołodko. This will be possible thanks to the government receiving an NBP loan to pay off part of the foreign debt. BRE economists estimate that due to lowering the corporate tax rate to 19%, budget revenues will be roughly lower by zł. 4 billion, while scrapping tax benefits of legal entities will save only zł. 2 billion. (Parkiet, p. 7) M.M.