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The Polish government will run up a debt abroad. Borrowing needs are record-breaking

The Polish government will run up a debt abroad. Borrowing needs are record-breaking

The Ministry of Finance announced on Monday evening that “BNP Paribas, Deutsche Bank, Goldman Sachs Bank Europe SE, Santander and Société Générale received a mandate to organize the issue of 5-year and 10-year benchmark bonds denominated in the US dollar“.

As we read in the release, the date of the transaction depends on the market conditions.

It is hard not to read the communiqué as a reaction to the government’s increasingly difficult situation in the debt market. We have described the problem many times in Business Insider Polska. This includes due to the profitability of Polish bonds the government is starting to talk louder and louder about tightening the fiscal policy.

The government’s borrowing needs for 2023, i.e. all the amounts that the state has to borrow to finance the budget deficit and bonds issued in the past due next year, officially amount to PLN 260 billion. However, according to some economists, they may be significantly above PLN 350 billion.

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