Only 26% of 2014 privatization plan completed

Poland has managed to raise only PLN 961 million through the privatization of state-controlled companies in 2014, which is only 26 percent of this year’s privatization plan (PLN 3.7 billion), according to data from the Finance Ministry. Revenue from privatization is one of several forms of financing the country’s budget deficit. Analysts say that privatization may not be the best way of raising funds right now. “Given what is happening on the stock exchange, privatization now would mean accepting low, disadvantageous prices,” Piotr Kalisz from lender Citi Handlowy told daily Parkiet. Instead the government can borrow very cheaply right now, by issuing bonds. The yields on two-year wholesale T-bonds dropped to a historic low of 1.95 percent on Wednesday. “Polish bonds are purchased on the block, there are no problems with finding buyers. This means that there is little pressure to sell stakes in state-controlled companies is low,” explained Rafał Benecki, chief economist of Bank ING.