WARSAW: Poland is still treated as an emerging market, which means that in times of turmoil in Greece and the prospect of interest rate hikes in the United States, capital is flowing out of the country to markets considered safer, experts say. Moreover, due to the lack of OFE pension funds on the FI market, Poland is more reliant on foreign funding and consequently more exposed to the global drivers, mBank chief economist Ernest Pytlarczyk says.
Also the high coverage of Poland’s borrowing needs and potential lack of domestic T-bonds supply makes Polish debt more sensitive to global factors, Pekao bank economist Adam Antoniak says. Still, a short-term recovery is possible if, for instance, Greece reaches an agreement with its creditors, BZ WBK economist Agnieszka Decewicz says.
