FinMin: FX turmoil not to impact Poland's debt levels.

By bne IntelliNews November 30, 2010
The recent turmoil on the FX market should not pose any danger of Polish methodology-calculated public debt exceeding the threshold of 55% of GDP, finance minister Jacek Rostowski has said. He stressed that the FX market had experienced major turbulence in recent days, but Poland had remained "on the periphery" of this trend. In line with the 2011-2014 strategy of the public sector's debt management, the debt of the public sector (according to the Polish methodology) will amount to PLN 750.8bn, or 53.2% of GDP, in 2010. Hence, it will not exceed the 55% threshold of the debt-to-GDP ratio this year, nor - as government representatives often stress - will it rise above this limit in 2011-2014. Rostowski also said that the government still intended to bring the general government deficit to below the EU-required level of 3.0$ of GDP in 2013 at the latest. The government expects the general government deficit to rise to 7.9% of GDP in 2010 from 7.2% in 2009. The government is targeting general government deficits of 6.5% of GDP in 2011, 4.5% in 2012 and 2.9% in 2013, a one-year delay on previous plans to bring the deficit down to below the Maastricht reference level. The zloty is now the weakest against the euro in four months, trading at PLN 4.09 per euro on Monday afternoon. ISB

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