State Treasury debt up 0.8% in June

State Treasury debt increased by 0.8 percent m/m and in June amounted to PLN 750.21 billion, Poland’s Ministry of Finance informed. Compared to the end of 2013, the debt calculated in the złoty decreased by 10.5 percent. The debt increase was caused by changes in currency exchange rates (PLN 1.1 billion) and financing a net loan for the state budget (PLN 4.7 billion). On the other hand, government debt saw a significant decrease compared to the beginning of the year after the redemption of treasury bonds as a result of the recent pension system reform. Without the bond redemption debt would have increased by 5.1 percent. Domestic debt amounted to PLN 488.82 billion at the end of June 2014 (up 1 percent compared to May 2014 and down 16.3 percent compared to the beginning of the year). Poland’s foreign debt increased by 0.4 percent in June and amounted to PLN 261.38 billion.