14:18 4 November 2024
Min Fin: PLN 56 bln needed to cover budget deficit
Poland’s increased budget deficit has driven a rise in borrowing needs, with an additional PLN 56 billion required within two months. To meet this, the Ministry of Finance plans to tap into a liquidity buffer and foreign markets rather than relying solely on domestic sources. Currently, banks hold excess liquidity, with attractive terms for government bonds, yet limits on bond holdings may restrict further bank investments.
Challenges loom, including lower investor appetite and risk aversion, evidenced by recent weak demand at debt auctions. The Ministry plans only two November auctions, with a potential third if required. Additionally, next year’s record borrowing needs—totaling PLN 366.7 billion—mean pre-financing is vital, though only 4% of 2024's requirements are secured so far.
(pb.pl)
