Polish pension reform will trigger 7 pps cut in debt thresholds - minister
September 30, 2013
Poland's pending overhaul of its partially privatized social security program will bring about a 7 pps reduction in the debt to GDP thresholds at which Polish fiscal law will mandate austerity measures, a deputy Finance Minister Janusz Cichon said on Twitter.
The reduction in the debt thresholds comes as Poland drafts separate legislation to rejig the partially privatized portion of its social security system, including a shift of all Treasury debt from private pension funds to individual accounts within the social security system, thus removing that debt from the debt accounting.
The Polish government said when introducing the pension system changes that it would reduce the debt to GDP thresholds to match the reduction in debt achieved through the pension reform.