Poland is planning to establish a lasting presence in the Japanese debt market to expand its investor base. The country could issue a benchmark-sized yen bond in the fourth quarter and may also consider issuing bonds under the green bond framework by the end of the year. The finance ministry’s debt chief, Karol Czarnecki, revealed that Poland intends to reduce its domestic debt issuance by about 20% in the third quarter compared to the second quarter.
Czarnecki emphasized that upcoming elections in France and the UK are not major long-term concerns for Polish debt. He also mentioned that Poland had already secured 75% of its borrowing needs for the year, including a significant euro and dollar bond sales earlier in the year.
Additionally, there are expectations of changes in monetary policy by the U.S. Federal Reserve and the European Central Bank, which could attract more investors to Polish securities. Czarnecki confirmed that Poland’s central bank had ruled out interest rate cuts until 2025.
Moreover, Poland is considering the permanent inclusion of treasury bills as a component of its debt financing. Czarnecki stated that there is interest in incorporating treasury bills as a regular element in funding borrowing needs, seeing them as a cost-effective source of funds used by many issuers.
Notes from Poland (photo)
