Poland in the Capital Markets 2018
Polish GDP impressed in the first quarter of 2018, growing 5.2% year-on-year, up from the 5.1% estimated, driven by higher consumption and investment in infrastructure co-financed by EU funds. Ukrainian migrants have also boosted GDP. But with proposed cuts to EU funding set to hit Poland hardest — at a cost of 1% of GDP a year from 2021, according to some estimates — the outlook is not so rosy. Virginia Furness reports.
The Republic of Poland has proved itself to be one of the most prudent and innovative borrowers in central and eastern Europe, leaving it well placed to navigate increasing volatility in global rates, while some less prepared issuers may run into funding difficulties. Virginia Furness reports.
When Standard & Poor’s revised its outlook on Poland to positive in April, it was the latest in a series of welcome surprises. The economy has grown faster than most analysts expected, leading several of them to upgrade their forecasts for growth in 2018. In the capital market, meanwhile, it was Poland, rather than any of the core eurozone economies, that became the first sovereign in the green bond market. What next for Poland’s vibrant economy and capital market? Participants answering this question in the GlobalCapital Poland roundtable, which took place in London in early June, were:
Poland’s domestic bond market is not as big as participants would like it to be. It needs standardised documentation, they say, along with more ratings and the adoption of transparent, fixed rate coupons. Philip Moore reports.
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