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Government tries to milk National Bank to save budget

10th July 2009
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The Prime Minister estimates that the profit will amount to between zł.12-14 billion


Courtesy of Wikimedia Commons

The government is looking for cash to help pay for the budget bill for next year without the need to increase taxes. One of the most controversial ideas is related to demanding a dividend from the National Bank of Poland (NBP) from the profits the institution will make this year.

"The Prime Minister estimates that the profit will amount to between zł.12-14 billion. The thing is to have the whole sum transferred to the state budget," said the head of the Presidential Chancellery Piotr Kownacki.

This statement caused a storm among representatives of the central bank who are not planning to share the money with the state. This year a special reserve was made by the NBP, thanks to which the final financial result for 2008 amounted to zero.

"Everything is in the hands of the bank, or more precisely of the Monetary Policy Council. It would have to change its resolution which created the reserve. If this decision will not be made the state budget will not receive any additional funds," said BZ WBK economist, Piotr Bielski.

Sources: Puls Biznesu; Gazeta Wyborcza; Rzeczpospolita


From Warsaw Business Journal


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