FinMin: Poland stands by plan to cut FX-debt share to below 30 per cent

Poland should continue activities aimed at reducing the share of FX-denominated debt in the total amount to below 30% and further, Finance Minister Pawel Szalamacha said in an interview for the paper Gazeta Polska Codziennie.

As Poland has only limited impact on the movement on the global FX markets, the only thing it can do is “continue activities aimed at reducing the share of debt issued in foreign currencies, the euro or the dollar, so that it goes below 30% of the total debt and continued to fall,” Szalamacha said.

“We have no influence on the USD exchange rate – we need to look at what we can improve within our possibilities, our powers,” the minister pointed out.

“It is about preventing the negative impact of potential moves on the FX markets on the public debt costs,” he said.

Poland sees large growth potential in state-controlled banks PKO BP and Bank Pocztowy, Finance Minister Pawel Szalamacha told daily Gazeta Polska Codziennie.

“Bank Pocztowy and PKO BP have a very large growth potential,” Szalamacha said asked about Poland’s chances to increase the domestic capital share in the banking sector to 50%.
“In many countries, such as Japan, France or Germany, the post – taking advantage of the extensive outlet network – and the affiliated postal bank were active players on the market, at least on the retail sector,” Szalamacha said. “They had a gigantic economic strength.”

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