Currency reserves could be used to pay off foreign debt

Dariusz Rosati, a member of the Monetary Policy Council (RPP), has stated that the National Bank of Poland (NBP) could lend $3-4 billion from its currency reserves, but only if this did not jeopardize the stability of the domestic currency market and if the money were used to pay foreign debt. The potential loan would replace the revaluation reserve idea proposed by former Finance Minister, Grzegorz Kołodko. "It cannot be too big an amount and $10 billion, for example, is out of the question," said Rosati. He also suggested that the financial resources could cover part of the country's liabilities to the so-called Paris Club. The value of these liabilities has been estimated at almost $18 billion. (Parkiet, p. 6) A.Z