New RPP to face onslaught from government to use NBP reserves

The Finance Ministry has not withdrawn from its plans to use the revaluation reserves of the National Bank of Poland to finance the budget deficit. However, the government will wait and try win the new Monetary Policy Council (RPP) round to this idea. "I will ask the new Council [which will be elected at the beginning of 2004] whether it would sustain the current accounting methods. I understand that this question remains open and we will discuss it," said Finance Minister Andrzej Raczko. According to the plans of former finance minister Grzegorz Kołodko, in 2004 the budget will receive about zł. 9 billion from the NBP reserves. The current RPP has criticized this proposal, saying that this move would pump money into the economy and fuel inflation. Deputy Józef Gruszka from the Polish Peasants Party announced during yesterday's meeting of the Sejm Public Finances Commission that he would propose an amendment to the Budget Bill for 2004, which would envisage using up to zł. 14 billion of the NBP's reserves. (Parkiet, p. 1) M.M.