Bloomberg News

Poland May Post Budget Surplus in June on Central Bank Profit

June 14, 2011

June 14 (Bloomberg) -- Poland may report a budget surplus this month because it will receive 6.2 billion zloty ($2.28 billion) from the central bank’s 2010 net income, more than triple the amount anticipated.

The government expects to receive the funds within two weeks after approving the Narodowy Bank Polski’s annual report today, the Cabinet said in an e-mailed statement. The bank posted a 6.5 billion-zloty profit last year and must transfer 95 percent of it to the government.

“The June budget surplus may reach 5 billion zloty thanks to the profit transfer from the central bank,” Marcin Mrowiec, chief economist at Bank Pekao SA in Warsaw, said in an e-mailed comment yesterday. “As a result, the first-half budget deficit would account for 47 percent of the annual plan.”

Poland has pledged to cut its budget deficit to less than the European Union limit of 3 percent of gross domestic product next year from 7.9 percent in 2010. The government estimates this year’s shortfall at 40.2 billion zloty. The gap was 23.9 billion zloty at the end of May, less than the 29.6 billion- zloty plan for the first five months.

--Editors: Willy Morris, Andrew Langley

To contact the reporters on this story: Monika Rozlal in Warsaw at mrozlal@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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