Exclusive: Polish DMO Head Czarnecki: USD Issuance Potentially Due in H1 2026, Return to Euro Market in H2

4 February 2026

By Marta Vilar – MADRID (Econostream) – Poland could issue a USD benchmark bond in the first half of 2026, while returning to the euro market is also a possibility for the second part of the year, according to Karol Czarnecki, Director of the Public Debt Department at the Polish Ministry of Finance.

In an interview with Econostream (see transcript here), Czarnecki said that the Polish finance minister’s confirmation that the country was not considering joining the euro for now had not changed anything “dramatically.”

“It does not change our economic picture,” he said. “Investors understand very well what the fundamentals of the Polish economy are and what adds value.”

Asked about a potential USD bond issuance this year, Czarnecki said Poland was “not in a hurry” to tap this market, adding that market stability and lower volatility were necessary, as well as a firmer idea about Polish financing plans.

On timing, he said benchmark issuances typically take place in the first half of the year and ruled out the possibility of the transaction occurring very late in the year. In terms of size, he noted that it would be broadly in line with previous benchmark deals.

Recent movements in the dollar have not had a material impact on Poland’s debt portfolio, as USD-denominated bonds account for only 5% of the total, he said.

“Given that we typically do only one USD deal per year, recent developments will not materially change the structure of our portfolio, as our funding mainly comes from the domestic market,” he said, adding that Poland was not oversupplying the market and that he did “not see any factors that would lead to a significant change in the composition of our portfolio.”

After the issuance of 5- and 10-year benchmark bonds in euros in January, it was “possible” for Poland to return to this market later in the year, he said, noting that it would be part of the prefunding strategy for 2027.

Czarnecki suggested that the return to the euro market would not happen until the second half of 2026 because the work on the projected budgetary needs for 2027 would only start in Q2, and the assessment of this year’s performance would only take place after the summer.

“The baseline scenario is therefore a return to the euro market in the second half of 2026,” he added.

Poland’s bond issuance in JPY was “in progress” and expected to be completed this year, he said, while a deal in CHF was still under consideration.

Regarding the domestic market, Czarnecki said that markets should expect a similar situation to that of 2025, and that a significant part of the budgetary requirements was already covered.

“On the domestic market, issuance will be higher than last year, at around PLN 480 billion compared to 430 billion in 2025 mainly because of higher redemptions on domestic market,” he said.

Czarnecki said investor demand had been concentrated in the middle of the curve, as banks — which account for a large share of participation in Polish debt — were seeking maturities below 10 years.

The 12-year green bond issued in 2025 had been “a success”, he said, and did not rule out tapping the bond again this year, though he added that he did not want to create expectations.

Asked whether a new green bond issuance was possible this year, he said that all options remain on the table, but any activity would more likely take the form of a tap rather than a new issue.

Regarding any potential innovations for 2026, Czarnecki cited the issuance of floating-rate bonds linked to the new benchmark rate, which he said would gradually replace the existing portfolio of WIBOR-based issuance.