Midtown Blogger/Manhattan Valley Follies: Warsaw Voice- Poland Well Stocked for Financial Intervention

The Warsaw Voice » Business » June 24, 2015

Poland well stocked for intervention if needed – central bank head

June 24, 2015

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Central Bank head Marek Belka

Poland's central bank could intervene on markets were a Grexit or other negative scenario to bring turbulence to markets, but little can be said about how markets might ultimately react to such sever news flow, central bank NBP chief Marek Belka said Tuesday.

"The basic problem with Greece is that we in Europe just don't know what consequences" could ensue, Belka told reporters.

Poland "could face turbulence on markets and a rise in debt servicing costs," Belka said on one hand; yet a "well balanced economy" could also "paradoxically" even lead to inflows and zloty gains, he said.

The NBP has "an unprecedented level of reserves" on hand at near EUR 100 billion should intervention prove requisite. The Finance Ministry "was never before in such a strong situation" with PLN 60 billion in liquidity and several months of comfort.

As of now, the zloty is "wobbly, but stable."

Poland remains "a long way" from having to utilize the flexible credit line facility at the IMF, Belka added.