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9/29/09

Warsaw Business Journal - Polish Budget deficit to remain below 55 percent

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Polish Budget deficit to remain below 55 percent

The economic slowdown in Poland looks likely to push public debt even higher next year, but the 2010 budget gap should still fall short of 55 percent of GDP, according to the Deputy Head of the Finance Ministry's debt department Anna Suszyńska. Many analysts are concerned that the 55-percent figure could be reached and surpassed as early as next year. However, the Finance Ministry continues to stand by its prediction, despite the rise in borrowing needs and the central budget deficit, that it will be able to effectively manage rising of debt levels and keep it under 55 percent.

The Polish government is trying to stem the spiraling debt through its privatization program, which has already begun, but the figure also rests with the strength of the złoty, as much of the country's debt is held in foreign currencies.

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