Finance Min looks to fully liberalize capital flows from beginning of 2001

The Finance Ministry is ready to fully free capital flows from the beginning of 2001. "This date of course is not binding for us, so it could change depending on circumstances, but right now it seems realistic," said deputy Finance Minister Jaroslaw Bauc. The Ministry can only make the decision on the liberalization after consulting the National Bank of Poland (NBP) and the Monetary Policy Council (RPP). Full liberalization of financial transactions would mean abolishing the last barriers on capital flows. As a result, foreign investors would be able to place money in Polish bank accounts for periods shorter than three months, Polish companies would not have to seek NBP permission when borrowing money abroad and all Poles could open accounts in foreign banks. Originally, capital flows were supposed to have been fully freed from the beginning of 2000, but officials were afraid of an inflow of short-term foreign capital. "After the freeing of the zloty, the risk significantly increased for everybody who invests money here, so we are less worried about the effects of liberalization, but this does not mean that all problems are gone," said Bauc. (Gazeta Wyborcza, page 24) T.J.