Poland will pay off its debt to Brazil for $2.46 billion before 2009 deadline

The settlement of Poland's old debt to Brazil aims to benefit both parties: Poland will pay below the nominal value of the debt and Brazil will finally receive the much-needed funds. The nominal value of the debt to Brazil is $3.32 billion and its ultimate payment was to be by March 2009. In order to source this sum, the government will have to borrow from the monetary reserves managed by the National Bank of Poland (NBP). However, the negotiations are in progress and it is still not known whether the Finance Ministry will agree to the loan or will instead issue bonds to the Central Bank. (Rzeczpospolita, p.B1) A.K.