1 month ago
According to the latest data from the Ministry of Finance, Poland’s foreign debt is decreasing, which is due to the new strategy adopted by the government in September.
The Ministry states that in September, as part of foreign debt, the government paid PLN 2.5 billion and PLN 565.4 million in interest. As a result, PLN 15.4 billion remains in budgetary accounts. This is part of the strategy which foresees that the proportion of foreign debt will decrease compared to public debt.
Avoiding the Turkish scenario
To reduce the influence of foreign debt over state finance, Mateusz Morawiecki’s government has decided to tap into home debt rather than foreign, over the course of four years.
The plan foresees that foreign debt will be less than 30 percent of GDP by the end of this year and 24 percent of GDP by 2022.
The government is moving away from debt in foreign currencies and wants to lower its effect on Polish state finances, so in the case of international crises Poland will be able to avoid a similar situation to Turkey, for example.