S&P: Poland will reach an agreement with the EC in a few months, but the funds may be delayed

The S&P Global Ratings base scenario predicts that Poland and Hungary are likely to reach an agreement with the European Commission within a few months, as the compromise is in the interest of both these countries and the EU side, said Karen Vartapetov, director, chief analyst for sovereign CEE / CIS ratings. According to the agency, the inflow of EU funds will probably be delayed, but both countries should use domestic funds instead.

"Both the ratings and [ratings] outlook for Poland and Hungary have been confirmed at their previous levels in the last few months, very recently. This means that our baseline scenario remains that there is likely to be some compromise between the Commission in the next few months And there is room for compromise, probably more for Hungary and a little less for Poland, but I want to emphasize that the compromise is in the interest of both sides: these two countries and the EC," Vartapetov said.

"Both countries have some space to support recovery fund projects with direct budget spending this year and early next year. So, from a fiscal point of view, it is broadly manageable, even given the favorable financing conditions [...] and also thanks to the accumulated cash buffers in both countries," he added.

(ISBnews)