“Security cannot depend on one-off operations. There is no such thing as 'SAFE 0 percent'. A real SAFE, ready to be signed by the president, remains the cheapest and best source of financing for defense investments,” Domański said in a post on X.
Continued below the video:
If NBP has financial result supplements, 95 percent profit goes to the budget. However, this has not been the case in recent years as the central bank made a loss. As Andrzej Domański noted, for three years the central bank has not received “a single zloty” from the budget.
However, if the NBP generates a high profit and transfers it to the budget, it will be “very good”, said the Minister of Finance.
Will NBP's profit finance armaments?
The issue of the NBP's profit and the gold accumulated by the central bank came into focus on Wednesday evening after President Karol Nawrocki and NBP President Adam Glapiński challenged EU funds by proposing the “SAFE 0%” program. — a national alternative to billions of dollars in loans from the EU.
EU loan from the SAFE program in the amount of approximately EUR 44 billion (approx. PLN 185 billion) waiting for the president's signature. However, the solution is criticized by both Law and Justice and the head of state.
Adam Glapiński came to the president's help. From the statements of the President of the National Bank of Poland, the President and materials published by the president's social adviser Leszek Skiba shows that the central bank could sell part of its gold reserves (of which it has 550 tons) to generate a profit, which it would then spend on armaments. Sale and repurchase are involved, more on that we wrote in this text.
The President of the National Bank of Poland on the central bank's profit
— The NBP profit transferred to the government should go entirely to the Armed Forces Support Fund — Adam Glapiński argued during the Thursday conference after the MPC decision on interest rates.
The Armed Forces Support Fund (FWSZ) is an instrument for financing the modernization of the Polish Army, operating at the Bank Gospodarstwa Krajowego (BGK). It is not directly part of the state budget, but functions as a separate special purpose fund.
See also: Plan for “SAFE 0 percent”. “The President of the National Bank of Poland wants to sell gold and buy it immediately”
SAFE vs. SAFE 0 percent.
So is it about the costs of financing armaments?
— It wasn't even about reducing the costs of armaments. This is pure politics. The president wants us to buy equipment from Donald Trump, and the government prefers to buy equipment from Poland and the European Union. And strengthening the community is not in the interests of Karol Nawrocki, says the former president of the National Bank of Poland, prof. Marek Belka in an interview with Business Insider Polska.
