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MINISTRY OF FINANCEPUBLIC DEBT DEPARTMENT
THE MOST IMPORTANT INFORMATION: (page)
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JUNE 2010
State budget borrowing requirements’ financing plan and its background:
in June 2010
Treasury debt average maturity close to historically record high level……….………………………………………………..…………...…………..
Polish borrowing policy as the most effective in the region - the EuroWeek award…………………………………………………………………………………………………………………………………...
Detailed issuance calendar in June.................................................................................................................................................................................................
Further decrease in indebtedness in T-bills planned for June 2010........................................................................................................................................................................
Borrowing requirements in 2010 funded in 51% (in the period January-May).................................................................................................................................................................................................................
Public Debt Departmenttel. +48 22 694 50 00
2 / 81 T-bond auctions
2 T-bill auctions
3 T-bond switching auction
4 Offer on the retail market
23 JUN 2010/
Floating (0.95 * WIBOR 6M),
Auction/ Settlement
settlement date
T-bond Issue price
DOS0612 100.00 PLN(99.90 PLN for rolling-over)
EDO0620 100.00 PLN
COI0614
TZ0513 99.90 PLN
100.00 PLN
52 week 1,200-1,800
6,356
Coupon
Source T-bonds
16 JUN 2010 18 JUN 2010 DS1020 1,000-3,000
9 JUN 2010 11 JUN 2010 IPS1014 (BGK) 1,000-2,500
2 JUN 2010 7 JUN 2010 OK1012 3,000-4,500
Auction date Settlement date Series Planned offer(PLN m)
The final offer and the supply will be announced 2 days before the auction and will result from the market situation and consultations with
investors.
The Minister of Finance and BGK are entitled to organize non-competitive auctions where bonds will be sold at auction average clean price.
Auction date Settlement date T-bill Planned offer(PLN m)
SUPPLY PLAN OF TREASURY SECURITIES IN JUNE 2010
21 JUN 2010 23 JUN 2010 52 week 500-1,000
14 JUN 2010 16 JUN 2010 52 week 600-1,200
7 JUN 2010
25 JUN 2010PS0415, WS0429
(PLN m)
9 JUN 2010 52 week 1,000-1,600
28 JUN 2010 30 JUN 2010
Outstanding
OK0710
T-bonds
5.25% in the first coupon period
Floating (inflation rate + 2.50%),(99.90 PLN for rolling-over) 4.50% in the first coupon period
Floating (inflation rate + 3.00%),
DS1110 21,590
Fixed, 4.00%
3.85% in the first coupon period
100%
3 / 8
1 Gross borrowing requirements in 2010
2 Flows of funds into the market related to T-bonds and T-bills and transfers to Open Pension Funds in June 2010(PLN bn)
3 Sale and redemption of T-bills in June 2010(settlement date, PLN bn)
4 Funds in PLN and in foreign currency held by MoF at the end of month(foreign currency funds include funds from debt issuance and received from the European Commission, PLN bn)
BACKGROUND OF BORROWING REQUIREMENTS' FINANCING IN 2010
The funds ensure liquidity in borrowing needs financing.
Funding of borrowing requirements after five months of2010 reached 51% which was mainly a result of bondsissuance on the domestic and foreign markets. Drawingsof loans from international financial institutions waspostponed to the third quarter of the year.
Assumed decrease of T-bills debt in June of PLN 2.0 -4.7 bn. Supply of T-bills is adjusted to T-bonds offeringsand T-bills redemptions.
Flow of funds due to redemptions of Treasury Securities, interest payments and transfers from State budget to Open Pension Funds will amount to PLN 11.3bn.
Gross borrowing requirements in 2010
Total PLN 196.8bn, of which:
Funding in I-V 2010
Total PLN 100.7bn (51%)
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
2.06 9.06 16.06 23.06 30.06
sale (mid of supply range) redemption aggregated balance
82.4
8.6
105.9
81.6
19.1
domestic debt redemptions
foreign debt redemptions
net requirements domestic
foreign
Redemptions; 9.5
Transfers to OPF; 1.7Interest; 0.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
19.8
25.9
21.3
28.2
18.5
11.8
20.6
32.6 31.933.7
35.9
22.4
36.8
33.4
26.227.6
23.1
0
5
10
15
20
25
30
35
40
I'09 II III IV V VI VII VIII IX X XI XII I'10 II III IV V
as of 28 May 2010
4 / 8
BACKGROUND OF BORROWING REQUIREMENTS' FINANCING IN 2010
5 Change of debt in domestic Treasury Securities held by banks(without BSB transactions with MoF; PLN bn)
6 Change of debt in domestic Treasury securities held by pension funds(PLN bn)
7 Change of debt in domestic Treasury securities held by insurance companies(PLN bn)
ZAAWANSOWANIE FINANSOWNIA POTRZEB POśYCZKOWYCH W 2010 ROKU (wg stanu na 28.02.2010 r.)
8 Change of debt in domestic Treasury securities held by investment funds(PLN bn)
In the period of I-IV there was an increase of PLN 2.3bnin debt held by investment funds. Comparing to thesame period of 2009 there were no changes.
In the period of I-IV debt held by domestic banksdecreased by PLN 3.7bn comparing to PLN 11.4bnincrease during the same period of 2009.
In the period of I-IV debt held by pension fundsincreased by PLN 4.8bn comparing PLN 3.5bn increaseduring the same period of 2009.
In the period of I-IV there was an increase of PLN 2.1bnin debt held by insurance companies. During the sameperiod of 2009 there was an increase of PLN 2.4bn.-0.1
0.0
-0.6
2.71.4
0.6
-0.9
1.30.4
-0.5
1.4
-0.5
0.1 0.6
-12.7
-0.5
-14
-12
-10
-8
-6
-4
-2
0
2
4
I'09 II III IV V VI VII VIII IX X XI* XII I'10 II III IV
* dividend paid by PZU S.A.
-0.5
0.7
-0.3
2.5
1.1
-1.3
-2.1
2.3
0.8
-0.8
0.70.9
1.2
-0.2
0.9
-0.1
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
I'09 II III IV V VI VII VIII IX X XI XII I'10 II III IV
2.2
0.9
-1.3
-5.5
-3.0
7.7
-1.3-1.5
5.1
-4.4
0.4
-4.1
1.9
6.25.1
-1.8
-8
-6
-4
-2
0
2
4
6
8
10
I'09 II III IV V VI VII VIII IX X XI XII I'10 II III IV
2.1
-1.3
2.0 2.0
0.8
-0.8
2.4
1.1 1.0
2.5
1.31.1
2.0
-2.1
1.4
-0.7
-3
-2
-1
0
1
2
3
I'09 II III IV V VI VII VIII IX X XI XII I'10 II III IV
5 / 8
BACKGROUND OF BORROWING REQUIREMENTS' FINANCING IN 2010
9 Change of debt in domestic Treasury securities held by foreign investors(PLN bn)
10 Change of debt in domestic bonds held by foreign investors(PLN bn)
11 Sale of T-bonds and T-bills in the period January - May 2010(settlement date, nominal amount, PLN bn)
12 Balance of T-bonds and T-bills in the period January - May 2010(settlement date, nominal amount, PLN bn)
The structure of Treasury securities offered dominatedby T-bonds (76% of total amount sold).
Indebtedness in T-bonds increased by PLN 31.9bn,whereas indebtedness in T-bills decreased by PLN 5bn.
In the period of I-IV of 2010 inflow of foreign capital todomestic TS market amounted to PLN 16.9bn. Foreigninvestors' holdings reached PLN of 98.7bn.
In the period of I-IV of 2010 inflow of foreign capital todomestic bonds market amounted to PLN 17.4bn.Foreign investors' holdings reached PLN 96.0bn.
7.1
6.2
-1.6
5.2
2.8
-2.1
2.6
4.3
-0.1
4.74.2
0.0
2.4
3.9
1.51.9
-4
-2
0
2
4
6
8
I'09 II III IV V VI VII VIII IX X XI XII I'10 II III IV
14.9
30.6
44.7
54.6
63.7
14.417.2
19.8
7.72.60.0
4.0
8.0
12.0
16.0
20.0
I'10 II III IV V
0.0
15.0
30.0
45.0
60.0
75.0
T-bonds sale (lhs) T-bills sale (lhs)accumulated T-bonds sale (rhs) accumulated T-bills sale (rhs)
8.8
18.015.4
25.2
31.9
0.5-0.9
0.6-2.3
-5.0-6.0
0.0
6.0
12.0
18.0
24.0
30.0
36.0
I'10 II III IV V
T-bonds balance T-bills balanceaccumulated T-bonds balance accumulated T-bills balance
7.1
6.2
-1.6
5.2
1.91.5
3.9
2.4
0.0
4.24.7
-0.1
4.3
2.6
-2.1
2.8
-4
-2
0
2
4
6
8
I'09 II III IV V VI VII VIII IX X XI XII I'10 II III IV
6 / 8
BACKGROUND OF BORROWING REQUIREMENTS' FINANCING IN 2010
13 External financing in January - May 2010(bonds issued on foreign markets and loans received from IFIs, EUR bn)
14 Structure of marketable debt in the years 2003-2010(PLN bn)
15 T-bills outstanding in the years 2003-2010(PLN bn)
16 Maturity breakdown of T-securities sold in 2009 in Poland and other countries(auctions and syndicates, local currency, ytd as of 26 May 2010)
In terms of maturity, the sale of TS in Poland isdominated by securities with maturity over 1 year.
In the period of January - May indebedness in T-billsdecreased by PLN 5bn and its share in total domesticdebt amounted to 8.7%.
Net financing on foreign markets (bonds issuance andloans from IFIs) amounted to EUR 3.6bn.
In May 2010 there was an increase in marketabledomestic debt of PLN 4.1bn to PLN 480.0bn.There is distinct T-bonds lead in the structure (91%).
3.9 3.93.6
3.03.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
I'10 II III IV V VI VII VIII IX X XI XII
inflows redemptions aggregated balance
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
2003 2004 2005 2006 2007 2008 2009 31.05.2010T-bonds T-bills
0
10
20
30
40
50
2003 2004 2005 2006 2007 2008 2009 31.05.2010
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
T-bills debt (lhs) share in total domestic TS debt (rhs)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poland Germany Italy Spain UnitedKingdom
Netherlands France USA Hungary Switzerland
up to 25 weeks 26-52 weeks 1-5 years above 5 years
7 / 8
BACKGROUND OF BORROWING REQUIREMENTS' FINANCING IN 2010
17 Average maturity
18 State Treasury debt redemptions in 2010(nominal amount, PLN bn)
19 Reducing refinancing risk connected with T-bonds’ redemptions(switch auctions, PLN bn)
20 CDS levels
(5-year, bp)
Currently 5-year CDS contracts for Poland are traded atlower level than contracts for e.g. Portugal, Spain orIreland.
The nominal amount of debt to be redeemed in 2010 isequal to PLN 61.1bn which makes up half of redemptionof 2009.
Buy-back of T-bonds maturing in 2010 via switchauctions was as follows: - PS0310: PLN 17.8bn (60% of initial outstanding),- OK0710: PLN 1.7bn (21%),- DS1110: PLN 6.3bn (23%).
In May the average maturity of domestic debt was at thehistoric highest level (5.50 in January 2009).
3.153.57
3.944.33 4.23 4.25 4.23
5.46
8.51 8.28 8.28 8.11 8.46 8.43
3.82
5.01 5.11 5.3 5.27 5.40 5.41
4.08
8.27
5.22
0
1
2
3
4
5
6
7
8
9
XII 2004 XII 2005 XII 2006 XII 2007 XII 2008 XII 2009 IV 2010 V 2010
domestic debt external debt total debt
0.0
3.0
6.0
9.0
12.0
15.0
18.0
21.0
24.0
27.0
I'2010 II III IV V VI VII VIII IX X XI XIIT-bills Domestic T-bonds International bonds and IFI's loans
29.6
8.1
27.9
11.8
6.4
21.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
PS0310 OK0710 DS1110
outstanding before switch auctions currently outstanding (to be redeemed)
0
50
100
150
200
250
300
350
400
450
500
2010-01-01 2010-01-22 2010-02-12 2010-03-05 2010-03-26 2010-04-16 2010-05-07 2010-05-28
Portugal
Ireland
Spain
Poland
Italy
UK
8 / 8
BACKGROUND OF BORROWING REQUIREMENTS' FINANCING IN 2010
21 Public debt to GDP ratios in 2008 and 2009
22 Most Impressive Central and Eastern European Borrower award
According to EuroWeek magazine Poland conducts the most effective borrowing policy in the region. Deputy Finance Minister Dominik Radziwiłł, on behalf of the Republic of Poland, received in London the award Most
Impressive Central and Eastern European borrower.
Due to a revision of nominal GDP for 2008 announced by Central Statistical Office on 14 May 2010 the reatio of public debt to GDP changed to:
- in the year 2008: 46.9%
- in the year 2009: 49.8%
