Rostowski (right) with Economy Minister Waldemar Pawlak; photo - PAP/Pawel Supernak
“Today there are fewer reasons for pessimism [in the European economy] than at the end of last year,” Rostowski said in an interview with Tok FM.
The minister added that Poland’s ratings were not under threat and that the government was undertaking more reforms than the PM, Donald Tusk, had outlined in his post-election address to the Sejm last autumn.
Fitch's long-term rating for Poland’s debt denominated in foreign currencies (mainly euros and dollars, and taking up about 30 percent of the total) is A- and A for debt denominated in zlotys.
The country’s ratings prospects are considered “stable.”
Last week the ratings agency cut its ratings for nine Eurozone member countries, including France’s coveted AAA rating.
Theoretically a cut in ratings should mean a rise in borrowing costs, reflecting higher risk to lenders.
The yields on French-issued debt papers, however, rose Monday, bucking – if only for now – this assumption.
France and some other Eurozone countries have long criticised the US-based ratings agencies for being, as they put it, somewhat over-zealous in their demands for fiscal austerity.
Poland has seen the yields on its euro-denominated sovereign bonds inch up already in 2012.
Higher risk aversion globally means the market is demanding a higher yield from Poland.
The yield on 10-year treasury papers at the latest auction was 5.88 percent, relatively benign if compared to several other peripheral Eurozone economies.
This slight rise may reflect concerns for the CEE region as whole, rather than specific worries about Poland.
Rostowski would not, however, be drawn on the government’s fiscal plans, except to say that the government would “stick hard on holding spending.”
The minister said the country’s protesting border guards would not be given a pay rise this year.
A key question is whether the country's new budget will see enough measures to bring the public sector deficit down to 3 percent of GDP in 2012, as the EU requires.
Fitch said a central budget deficit of 35 billion zlotys was possible, although was more circumspect about achieving the 3 percent of debt to the public sector deficit given the need to rein in spending and the likely impact this could have on growth.
In December the government said its net borrowing needs in 2012 would be 46.2 billion zlotys, up from 32.6 billion in 2011.
The government needs to avoid breaching a debt threshold of 55 percent of GDP, which would automatically trigger far more stringent budget cuts.
Rostowski said last week that at least one ratings agency could even raise Poland's credit rating in 2012. He had earlier said it might take place in the first quarter.
In a mini-rift with the central bank, Rostowski suggested recently that the NBP could intervene in the government bond market, playing a temporary role in absorbing any shocks there caused by the global financial crisis.(jh)