Poland is gearing up to enter the foreign debt market in 2025, planning to issue approximately 42.9 billion zloty ($10.5 billion) in foreign currency debt, starting with a euro bond sale. The Finance Ministry anticipates that the majority of these sales will occur in the first half of the year, as they aim to address a projected fiscal shortfall that is expected to exceed 5% of GDP for the third consecutive year [c7b3593a].
Finance Minister Andrzej Domanski highlighted that over 20% of the borrowing needs for 2025 have already been covered, indicating a proactive approach to managing the country's fiscal requirements [c7b3593a]. The government is also considering issuing green bonds and yen-denominated debt, diversifying its funding sources in response to changing market conditions [c7b3593a].
In addition to the euro bonds, Poland plans to resume regular sales of Treasury bills (T-bills) after a hiatus that lasted since the onset of the Covid pandemic [c7b3593a]. The country’s economic outlook remains optimistic, with GDP growth projected at nearly 4% in 2025, despite the challenges posed by the fiscal deficit [c7b3593a]. Currently, the yield on 10-year government bonds stands at 5.87%, reflecting the broader economic environment and investor sentiment [c7b3593a].
This strategic move into foreign debt markets comes at a time when Poland is navigating a complex economic landscape, marked by fluctuating global interest rates and a less attractive US dollar market. The government's focus on euro bonds and green financing options underscores its commitment to sustainable economic growth and fiscal responsibility [c7b3593a].