Thanks to the government-proposed changes to the open pension fund (OFE) system, Poland will be able to report a one-time surplus in the general government sector - of 4.5% of GDP in 2014, according to the ministry of finance. However, the ministry admits that we will return to a deficit of 3.0% of GDP the following year.
It also reported that changes to the pension system will bring about saving to the public finances to the tune of PLN 151.95bn (or 8.83% of GDP) in 2014.
The ministry also reported that in 2013, this deficit will rise to over 4.8% of GDP from last year’s 3.9% of GDP.
In the spring, the Polish government targeted 3.5% of GDP for this year (and 3.3% for 2014). In May, the European Commission expected the figure at 3.9% of GDP in 2013 and at 4.1% of GDP in 2014.
The draft law amendment stipulates for writing off of T-bonds held by OFEs (i.e. 51.5% of their portfolio) on Feb 3 of 2014. Afterwards, the funds will be allowed to invest in, among others, equities, corporate and municipal bonds, mortgage bonds, revenue bonds, derivatives. The ministry of finance estimates that the value of bonds to be written off will amount to around PLN 120bn.
Alior Bank will pay out a dividend of PLN570mn (€122mn) from the profit generated in 2023, the Warsaw-listed lender said on February 28. The payout is in line with recommendations of the Polish ... more
The European Bank for Reconstruction and Development (EBRD) invested €20mn in debut Eurobonds issued by the state-controlled Bank Pekao, the second-largest Polish lender by assets, the EBRD said on ... more
PKO Bank Polski, along with three other banks, has entered into a consortium agreement with Great Wind, a subsidiary of the Polsat Plus Group, a media and entertainment company, to finance the ... more