On Friday, a letter from the President of the NBP, Adam Glapiński, to the secretary of the Standing Committee of the Council of Ministers, Mariusz Skowroński, was published on the website of the Government Legislation Center, regarding the draft amendment to the Act on the NBP. He critically assessed the proposed changes.
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Adam Glapiński criticizes proposals for changes to the Act on the National Bank of Poland
“The NBP (…) pointed out that the draft act does not introduce, for example, the possibility for the NBP to secure itself against the full spectrum of financial risks to which the bank is exposed.and not only the exchange rate risk, and the possibility of covering NBP's accumulated losses with profits earned in subsequent years, which would be consistent with the prevailing practice of other central banks of the European System of Central Banks (ESCB),” wrote the head of NBP.
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“At the same time, we point out that The NBP incurred a loss for 2024 and a negative financial result of the NBP in 2025 is highly probable. A loss of the NBP in the following years cannot also be ruled out if the current dominant trends in the appreciation of the PLN exchange rate against foreign currencies continue.. For this reason, the indication is broader than the current one the possibility of NBP covering balance sheet losses, which at the end of 2024 have already exceeded PLN 60 billion and will probably approach PLN 100 billion at the end of 2025, is an extremely urgent and important matter“- emphasized Glapiński.
The Act on the National Bank of Poland to be amended. What do they assume?
The draft amendment to the Act on the NBP assumes, among others, that: the NBP management board will have to adopt, in addition to the financial plan for a given year, also a forecast of the central bank's financial plan for the next three years, and also adopt a monthly forecast for the implementation of the NBP financial plan..
These documents – approved by the Monetary Policy Council – would be sent to the Ministry of Finance, as well as information on “the preliminary implementation of the NBP financial plan and information on the final implementation of the NBP financial plan for the previous year, by March 15.”
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“The mere arbitrary introduction of the obligation to prepare three-year forecasts, without accepting the justified arguments presented by the NBP, is an example of government interference in the functioning of the NBP, which at the same time goes beyond the scope of the resolution of the Council of Ministers (…), proposing the establishment of a legal mechanism for communication between the NBP and the Ministry of Finance in the process of developing the draft state budget (…). It is no coincidence that the NBP has not yet prepared three-year forecasts of the financial result, even for its own use – the information value of such forecasts would be so poor that it would not justify the costs of implementing an additional forecasting process by the NBP,” added the president of the NBP.
