(Bloomberg) -- Poland’s government aims to focus on next year’s financing needs after a €3 billion ($3.3 billion) bond sale “practically completed” its borrowing plan for 2024, according to the Finance Ministry’s debt chief.
The largest economy in the European Union’s east returned to the international market this week with a sale of seven and 15-year notes. The country had already sold $8 billion of securities, its biggest debt issue in the US currency, in March following a bond in the single European currency at the start of the year.
The record-high demand totaling more than €15 billion in this week’s deal indicates very strong interest from institutional investors, not only from Europe, Karol Czarnecki, head of the Finance Ministry’s public debt department, said in a statement to Bloomberg. The ministry will now seek to pre-finance 2025 borrowing needs, he said Wednesday.
“In the remaining part of the year, the Finance Ministry’s activity won’t take place on the main foreign markets, that is the euro and US dollar,” Czarnecki said. “However, other markets, which are less significant in terms of volumes and where we are or have been present, remain open for us.”
The government in Warsaw has proposed a budget that includes increased borrowing next year as it plans a massive build up in defense spending and seeks to maintain support ahead of scheduled presidential elections.
Net borrowing needs will rise to around 367 billion zloty ($93 billion) in 2025, from almost 216 billion zloty in 2024, as Prime Minister Donald Tusk’s cabinet sees the fiscal deficit well above the EU’s cap set at 3% of economic output in the coming years.
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