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Press release on transactions held by Ministry of Finance on the financial market in 2013

Press release on transactions held by Ministry of Finance on the financial market in 2013

Press release on transactions held by Ministry of Finance on the financial market in 2013

The Ministry of Finance informs that in 2013 following transactions were concluded on the financial market:

  1. Foreign Exchange Swap Transactions (FX swap),
  2. Exchange of foreign currency.


1) Maturity of particular transactions was not longer then two months and was established to satisfy borrowing requirements of State budget. In 2013 transactions were concluded using EUR/PLN currencies with the total notional amount of EUR 0.8 bn that equals of acquiring PLN 3.3 bn. These transactions consist of simultaneous exchange of one currency for another for a specific period of time with exchange rate set up at the moment of conclusion.
This liquidity management instrument allowed to use foreign currencies in order to borrow zloty.
The total cost of acquiring funds in domestic currency was significant lower than cost of alternative cost of financing with the comparable maturity.
The Supreme Chamber of Control didn't raise objections connected with purposefulness and effectiveness of these operations.
Due to the fact that these transactions included assets only, and not liabilities, they had (according to Eurostat's guidelines) no impact on the public debt level as well as on the budget deficit reported to the European Commission.

2) In 2013, similar to previous years, Ministry of Finance concluded the exchange of foreign currency resources received from the EU and related to the public debt both on the financial market and in the central bank. Total exchange on the financial markets amounted to equivalent of EUR 13.1 bn. 
The Supreme Chamber of Control didn't raise objections connected with purposefulness and effectiveness of these operations.

 

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