The złoty plunges to a new all-time low

The announcement, likely to put the target of zł.8.8 billion in privatization revenues beyond the realm of possibility, could leave the budget in tatters, as both Deputy Prime Minister Jerzy Hausner and Finance Minister Andrzej Raczko said those revenues would be fundamental to keeping the deficit under the lid. The market's reaction to the news puts a further strain on the budget, as a weaker złoty adds to debt servicing costs. Hausner said that an ongoing currency plunge is certain to nullify all attempts to keep the debt to GDP ratio below the constitutional limit of 55% this year. (Parkiet, p. 1; Rzeczpospolita, p. B1) A.N.