|
Poland Foreign Loans and Money Supply
In April 1991, representatives of the seventeen major
West
European creditor governments collectively known as the
Paris Club (see Glossary)
agreed to a two-phase, 50 percent
reduction
of Poland's debt on government loans. The United States
made a
similar reduction of 70 percent. Terms for servicing of
the debt
were rearranged, with payments to escalate gradually from
US$0.5
billion in 1992-93 to US$1.5 billion later in the decade.
Negotiations with Western commercial banks, the so-called
London Club (see Glossary),
continued in 1992. The hard currency
debt
was reduced from US$48.5 billion at the end of 1990 to
US$44.3
billion in August 1991, partly because of the debt relief
of
US$1.6 billion effected by the United States and partly as
the
revaluation of the dollar against other Western currencies
reduced the debt in those currencies.
In 1991 the total money supply in Poland, counting both
zlotys and convertible currency, increased by 83.9
trillion
zlotys. Of this amount, over 90 percent belonged to
private
individuals or private enterprises, and about 6 percent
belonged
to state enterprises. The increase in the money supply
came
mainly from higher bank debts owed by economic units and
the
government. A midyear alteration of the exchange rate
between the
zloty and the United States dollar also played a major
role.
Foreign currency held in Polish bank accounts increased by
13.2
percent in 1991 because more accounts were opened in 1991.
Although money in personal savings accounts grew by 250
percent
in 1991, money held by enterprises in bank accounts grew
by only
12.4 percent in the same period. Estimated total foreign
currency
resources declined by over 3 percent in 1991 to US$5.3
billion.
Data as of October 1992
|
