Wednesday, April 14, 2010

Poland- A dispute with the bankers over profits

I am going back to Poland, again. This is a tough situation. Perplexing for sure.
Perhaps this is an enlightening bit of news?

A complete change from just a few days ago

Poland May Be Without Central Bank Governor for a ‘Few Months

Complete about face from just two days ago, where a quick replacement was an utter necessity!

Now- "Poland’s central bank may be without a permanent governor for months as the acting head of state tries to avoid appearing unduly hasty or politically motivated, economists and constitutional analysts said."

The national tragedy creates exceptional and unique circumstances that explain no rush in the appointment,” said Piotr Winczorek, a Warsaw-based professor of constitutional law, in a phone interview. “We all should be interested in naming the best candidate and this means it may take even up to a few months to name the new governor.”


Slawomir Skrzypek’s death came a day after the bank started selling zloty in a bid to contain the currency’s appreciation and make room for a reversal of monetary easing. The bank has also signaled it may want to raise interest rates, given the size of the state budget deficit.

The zloty gained 0.2 percent against the euro to trade at 3.8679 at 12:34 p.m. in Warsaw, after dropping for three days out of four. The currency has gained 6 percent against the euro this year, making it the best-performer in the European Union.

How were the banks moves going to affect the Polish people and economy?

The acting bank governor, Deputy Governor Piotr Wiesiolek, who assumed the duties of Skrzypek, said the vacancy should be filled “without unnecessary delay,”

Asked whether the bank is ready to follow up on its April 9 purchase of euros to curb zloty gains, Wiesiolek said excessive currency fluctuations are undesirable and the bank will “diligently perform” its duty to “protect the stability and value of the zloty,”
Another Aha!!!
Was there a central bank/ elected government dispute ongoing?

Profit Row

The bank’s management and the rate-setting Monetary Policy Council, meantime, have been arguing about the size of the central bank’s profit, which the government wants to shift to the state budget to help reduce the deficit.

A majority of policy makers, nominated by the Civic Platform-led coalition and approved by its parliamentary majority, supported taking a bigger chunk of the profit for the budget, drawing accusations from the opposition that it was putting the central bank’s independence at risk.

Putting the Central Bank's independence at risk?? Hmmm! I don't think so.
More like limiting their thievery.
This bit of news sets off some alarm bells for myself, anyone else?

Did the Polish leadership forget, the bankers rule?

Some additional generally interesting news
The elections.
Poland ruling party has announced the elections will be held June 20th/2010.
Though it is possible that date may be changed.

They agreed to push back a final decision until next week. A leading PO official said the poll would most likely take place on June 20.

Under the rules of the Polish constitution, the election must be held within 60 days of the date announcement and the slight delay gives right-wing Law and Justice (PiS), led by Kaczynski's twin brother Jaroslaw, and the main leftist SLD party extra time to find candidates.

Regarding Jaroslaw Kaczynski, there is speculation that he could win on a sympathy vote.

- Before the plane crash that killed him, President Lech Kaczynski was facing likely defeat in fall elections as voters turned away from his conservative message.

But a surge of sympathy could bring a reprieve for his political movement rooted in traditional Catholic values and a suspicion of Poland's big neighbors - especially if his identical twin, Jaroslaw, the key political operator in the duo, runs for the presidency in his place.

Maybe Jaroslaw will not have to find any candidate to run?

Lots of finger pointing is going on-
Lech Kaczynski's critics try to blame him for the plane crash
Poland MP Blames Russia for Smolensk Aircrash, President's Death

Brief, but relevant digression

I want to take you over to aangirfan for this NEO-CON CIA AGENT TO TAKE OVER POLAND?

I find that most interesting Radoslaw Sikorski, married to Annie Applebaum.
I have come across a few of the articles she has written for the New York Times regarding Russia and Poland. That is an interesting connection. One worth following.

No comments:

Post a Comment