Political impasse results in nervous financial markets

Analysts fear that the nervous atmosphere on the markets will last. Yesterday, the Finance Ministry cancelled the tender for the swop of T-bonds worth zł.23.5 billion for new five- and ten-year bonds. After the fiasco of the negotiations between PO and PiS, the prices of Polish bonds dropped dramatically. "We could have expected that," commented Janusz Jankowiak, chief economist at BRE Bank. The Dow Jones agency believes that the political problems may cause a further sale of Polish assets by foreign investors. Last week, the value of the Polish bond market decreased by around zł.500 million. The data for this week is still unknown. The chief economist at Deutsche Bank, Arkadiusz Krześniak, believes that the situation will continue to deteriorate and eventually the złoty will stabilize at around zł.4 to the Euro. (Rzeczpospolita, pp. A1, B1) A.F.