Moody's raises Polish debt forecast to 3.1 percent of GDP

Moody's has increased its projection for Poland's debt in 2016 to 3.1 percent of its GDP, Bloomberg reported. Previously the rating agency had predicted the debt to be at 2.9 percent. The agency's analysts see a risk of further fiscal policy loosening after 2016, which would contribute to a further rise in government debt. In their opinion, the deviations from deficit levels in 2015 and 2016 are bad for Poland's credit rating. In the budget projections for 2016, the government assumed that financial sector debt would be at 2.8 percent of GDP.