S&P: Poland's public finances need more-structural reform to maintain ratings.

By bne IntelliNews April 12, 2011
Poland's public finances will need more-structural reform to maintain its ratings' (A-/stable/A-2) level in the medium term, credit-rating agency Standard & Poor's Ratings Services has said in a communiqu. "The government's relaxed fiscal stance has resulted in rising debt levels in Poland. Polish law restricts the government's budgetary freedom when debt exceeds certain thresholds and debt levels have now breached the first of these, prompting the authorities to introduce measures to curb the 2011 deficit. However, the government has so far avoided structural reform," the release reads. Instead, it will divert some funds from the second pillar of the pension scheme into the state-run pay-as-you-go system, it added. S&P also stressed that the ratings could come under pressure if the government fails to implement structural reforms aimed at putting the public finances on a sustainable footing following the October 2011 general election. ISB

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