WARSAW: Poland needs to cut public debt levels in order to secure credit rating upgrade as deficits to the tune of 2.5-3.0% of GDP may not suffice to achieve that goal, Fitch analyst Arnaud Louis told PAP Polish news agency.
“What is important for us is the impact on the government debt to GDP ratio,” Louis said. “Now it is above 50%. The question we ask ourselves is if it is going to decline.” “In my view, deficits around 2.5-3.0% of GDP would stabilize this ratio or bring it slightly lower, but it is not good enough,” he added.
The decision by the European Commission to recommend lifting the excessive deficit procedure from Poland is “not a game changer,” even though “it is clear positive that we see tightening of the deficit.”
