Poland wants to expand powers of central bank only as a last resort
August 22, 2013
Marek Belka, head of the NBP central bank
Poland wants to expand the powers of central bank NBP by allowing the buying and selling of treasury bonds on the secondary market to increase its role as a "lender of last resort," the Finance Ministry's press office told PAP Wednesday.
An outline to a pending amendment of the NBP law includes granting the NBP the right to conduct Treasury paper trade outside of open market ops and "is aimed at expanding the range of tools of the NBP in relation to the functioning of the central bank as the so-called lender of last resort," the ministry explained.
It is not the intention of the new bill to enable the NBP to finance the budget deficit, the press office stressed. Poland's constitution expressly forbids central bank deficit financing.
The ministry's regulatory actions in this respect have been consulted with the central bank, the ministry added.
The bill being drafted by the government also allows for double terms by the monetary policy council members, regulates their outside activities and removes the council from NBP financial oversight roles.