Government calls on central bank to free up funds

17th July 2009

Poland’s government is at odds with President Kaczynski and the National Bank of Poland (NBP) over public statements that a surplus in the central bank's reserves could be used to reduce next year's budget deficit.

Both Prime Minister Donald Tusk and Finance Minister Jacek Rostowski announced publicly last week that they expect the NBP to have a PLN 10 bln. surplus at the end of the year, and that this money should be used to help finance the 2010 budget.

The funds in question include profits from the central bank's activities and surpluses resulting from shifts in the value of the NBP's reserves. Ninety percent of the bank’s assets are foreign currencies, whose current value in zloty ...