Poland should consider whether launching an LTRO-modelled program would be justified in the light of its over-liquid banking sector and satisfactory lending rates, central bank NBP management board member Andrzej Raczko told reporters.
“LTRO programs [elsewhere in the world] were introduced in specific conditions – that was the case with the British model and the Hungarian one as well,” Raczko said. “That’s why in Poland we should consider whether our situation is comparable.”
“I want to stress that, firstly, the banking sector is over-liquid, and secondly, the rate of lending is satisfactory, as opposed to what was observed in Hungary,” he said.
The comment refers to the ruling party PiS’s plans to introduce LTRO as a funding formula for increasing investments in the economy, recently reiterated by PM Beata Szydlo in her inaugural policy speech. Improved EU fund spending, activation of corporate deposits and expanded use of state funds, including at state-controlled firms, were also named as funding drivers.