Poland seeks to honor its debts
The Finance Ministry is also considering a bond issue on the U.S. debt market. It expects strong demand for the issue, because of Poland's impressive economic performance and its raised profile, following EU membership.
Wieslaw Szczuka, the ministry's debt management chief, said: "Poland has not overborrowed on foreign debt markets. To date investors have complained at the low liquidity of our instruments. We expect sufficient demand.
"If conditions are supportive we would not rule out an issue on the U.S. market later this year."
Poland began the process with a EUR3 (zł.12.19) billion five-year issue last week-its largest ever and the first since joining the EU. The ministry also has EUR6 billion in bridge financing to give it flexibility on the timing of future offers.
Meanwhile, the Paris Club agreed to offer a temporary debt moratorium to countries affected by the Asian tsunamis, but only three nations expressed interest. A decision on the Polish debt will not be made until March.
So far, only Germany has expressed an interest in Poland's proposal. Three Paris Club members, including Japan and Canada, are unwilling to accept the early repayment plan.
According to Mirosław Gronicki, the Minister of Finance, further bond issues will depend on the market: "We will be flexible. It will depend on the situation at the time whether we issue in Europe, the U.S. or Japan." But the euro looks set to remain the focus of Polish interest. (Reuters)
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Wieslaw Szczuka, the ministry's debt management chief, said: "Poland has not overborrowed on foreign debt markets. To date investors have complained at the low liquidity of our instruments. We expect sufficient demand.
"If conditions are supportive we would not rule out an issue on the U.S. market later this year."
Poland began the process with a EUR3 (zł.12.19) billion five-year issue last week-its largest ever and the first since joining the EU. The ministry also has EUR6 billion in bridge financing to give it flexibility on the timing of future offers.
Meanwhile, the Paris Club agreed to offer a temporary debt moratorium to countries affected by the Asian tsunamis, but only three nations expressed interest. A decision on the Polish debt will not be made until March.
So far, only Germany has expressed an interest in Poland's proposal. Three Paris Club members, including Japan and Canada, are unwilling to accept the early repayment plan.
According to Mirosław Gronicki, the Minister of Finance, further bond issues will depend on the market: "We will be flexible. It will depend on the situation at the time whether we issue in Europe, the U.S. or Japan." But the euro looks set to remain the focus of Polish interest. (Reuters)
L.M.
