Kowalczyk, PIS: Poland’s potential PLN 350 bln central bank funding program seen as “legitimate”

Poland setting up its own ECB-modelled central bank funding program expected to yield PLN 350 bln over six years is a legitimate way to support lending and investment propensity, MP of the major opposition party and poll leader PiS Henryk Kowalczyk told PAP.

“This is of course legitimate,” Kowalczyk said of the proposed central bank program which could generate as much as PLN 350 bln. “It is a program which would support lending.”

Under the program, loans would be granted at “even lower interest rates than at present; on the interbank rate this would practically be a loan free of charge,” Kowalczyk said.

“Therefore it should encourage the propensity to invest and then lending should gather momentum,” he added.

The program goes hand in hand with PiS’ CIT proposal, according to which investments will be 100% amortized in the given year, the MP also said.

In order to prevent banks from re-directing the money from investment funding to T-bond purchases, they would be required to account for the money before the NBP.

“If they directed the means to other goals, they would receive a different interest rate,” Kowalczyk said. “That’s how I imagine it.”

Poland’s chief opposition party PiS may seek to fuel the economy directly from the central bank in a program which could generate as much as PLN 350 bln if crafted to match the scope of the EU’s QE program, PiS said in a presentation of its program financing on Tuesday.

jba/ krba/ ami

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