Transcript: Interview with Polish DMO Head Karol Czarnecki on 3 February 2026
4 February 2026
By Marta Vilar – MADRID (Econostream) – Following is the full transcript of the interview conducted by Econostream on 3 February 2026 with Karol Czarnecki, Director of the Public Debt Department at the Polish Ministry of Finance:
Q: A few days ago, your finance minister said Poland is “better served by retaining the zloty for now,” and that the case for adopting the euro had weakened. Are you comfortable with foreign investors seeing Poland more as a local currency opportunity, rather than primarily as a euro area convergence story?
A: From our position as a debt issuer, nothing has changed dramatically. It does not change our economic picture. Investors understand very well what the fundamentals of the Polish economy are and what adds value.
Q: Does ruling out joining the Eurozone in the near term affect how you think about debt maturities and foreign issuance?
A: In order to enter the Eurozone, we need to meet the convergence criteria, which is not a question for the next year or two. So, this is a longer-term consideration rather than a near-term issue.
Q: You said Poland is considering issuing in USD this year. What conditions would need to be in place for you to move ahead with that issuance?
A: First of all, we are not in a hurry. The USD is not our main currency; it is rather supplementary. We carried out a successful issuance in euros following the path we adopted a couple of years ago. For a USD issuance, we first need market stability, with low volatility in rates. Second, we need to see how the Polish financing plan develops.
Q: Would a USD deal be more likely earlier or later in the year?
A: We usually do benchmark issuances in the first half of the year. So, this is not something we would do very late in the year, but we are not in a hurry either.
Q: Is there an indicative size for a potential USD deal that the market should be expecting?
A: Benchmark size.
Q: What range?
A: The volume should be similar to what we have done in benchmark deals before.
Q: When you stress-test your portfolio, do you still treat the USD as destined to remain for the foreseeable future the dominant funding and stress currency, or has that assumption started to change?
A: The USD has never been a dominant source of funding for us; that would be the euro. Around 80% of our debt portfolio is denominated in PLN. The USD accounts for only around 5%. As a result, recent developments do not materially affect our debt portfolio. We nevertheless value the option to issue in USD to diversify our investor base, as it allows us to access some major investors who are not necessarily active in our issuance in other currencies.
Q: Do you see recent developments affecting the USD-denominated share of your debt?
A: 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. We are also not oversupplying international markets at the moment. Therefore, I do not see any factors that would lead to a significant change in the composition of our portfolio.
Q: In early January you issued 5- and 10-year benchmark bonds in euros. Do you expect to return to the euro market again in 2026?
A: It is possible and could form part of our prefunding strategy for next year’s budgetary requirements.
Q: What would need to happen for you to move ahead with that?
A: First, we would assess market conditions, and then our budgetary performance and the outlook for the following year. We would likely treat such an issuance as a prefunding tool, so once we have clarity on the projected budgetary requirements for 2027, we will be able to decide.
Q: Is it more likely to happen in the short term or later in the year?
A: It would be later in the year. First, we need to establish the projected budgetary requirements for 2027, which we will begin working on in Q2 2026. Then, we need to assess this year’s performance, which will be clearer after the summer. The baseline scenario is therefore a return to the euro market in the second half of 2026.
Q: You have previously mentioned issuing in CHF and JPY as possible foreign currency options this year. How realistic do you see issuance in either of those markets?
A: The JPY issuance is in progress, and we expect to complete it this week. For CHF, we are still assessing the opportunity.
Q: Is either of those markets currently more attractive than the other?
A: Our actions are aimed at diversifying our investor base. Japanese investors are very important for us. In other markets, there is still a premium to be paid relative to euro issuance, but pricing is not the only consideration. Other factors also play a role, and we remain open to accessing multiple markets.
Q: So, the JPY issuance is due this week, but the potential CHF issuance is still under consideration, right?
A: Yes, that’s right.
Q: How much do you plan to raise through foreign currency issuance this year?
A: Roughly the same amount as last year. Between 10 and 12 billion in EUR equivalent. We are not oversupplying the market.
Q: What maturity range are you considering for the foreign currency deals you have in mind for now?
A: Three factors are important. First, our strategic objective of extending the average maturity of total debt. Second, investor demand. Third, pricing. Conditions across markets are broadly similar, except in Japan, where there has been stronger demand for shorter maturities. Pricing must of course also be attractive, and we need to take our overall maturity profile into account. In our core markets—the euro and USD—we generally issue around the 10-year benchmark.
Q: What should markets expect from Poland in terms of domestic issuance this year?
A: Markets should expect a broadly similar situation to last year, as a substantial portion of the budgetary requirements is already covered. Gross financing needs amount to around PLN 690 billion, of which PLN 115 billion is to be covered by RRF loans. This is comparable to last year, when PLN 580 billion needed to be 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.
Q: Which parts of the curve are investors showing the strongest demand for at the moment?
A: Participation from the banking sector in Polish debt issuance remains high, with demand concentrated below the 10-year tenor. Over the past few quarters, we have observed that investor demand has been skewed toward the middle of the curve rather than the very short end.
Q: On June 30 of last year you issued your first green bond since 2019. How did that transaction go, and how would you describe investor interest?
A: It went very well, especially considering that it was completed shortly before the summer holidays, and demand was still strong. Investors had been waiting for our return to the green bond market. Work on the green bond framework took considerably longer than initially expected, but overall, the transaction was a success.
Q: Do you expect to tap this bond again in 2026?
A: That will depend on the availability of a portfolio of expenditures eligible for such an issuance. For the moment, our focus is on using the Recovery and Resilience Facility. A further assessment will follow, but it is too early to determine the potential size.
Q: You say you don’t know the size, but do you expect to tap the bond again this year?
A: I would not rule it out, but I do not want to create expectations.
Q: But tapping this bond is more likely than issuing a new green bond, right?
A: For now, the 12-year maturity of the bond issued in 2025 provides an opportunity to reopen that line rather than launch a new transaction. We do not expect green bond investors to be particularly tenor-sensitive between a 10- and 12-year maturity. All options remain on the table, but if anything were to happen, it would more likely take the form of a tap rather than a new issue.
Q: In your 2026 issuance calendar, you note that T-bill supply will depend on the budget and market conditions. What would you need to see to increase T-bill issuance?
A: An increase would require either higher budgetary needs—which we do not expect—or a further rise in investor demand, which continues to grow. For now, we view treasury bills as a standard instrument to meet demand, particularly from money market funds, where interest has increased significantly over the past year. At the same time, convergence between bonds of similar maturity and treasury bills is still ongoing, with spreads continuing to narrow. As a result, we are not planning any extraordinary increase, and issuance is expected to remain at around one outright tender per month.
Q: Are you planning any innovations in your issuance strategy this year?
A: Looking ahead, one of the key innovations we see becoming increasingly important in 2026 and beyond is the issuance of floating-rate bonds linked to the new benchmark rate. This forms part of the broader benchmark rate reform currently underway in Poland. We issued an inaugural three-year floating-rate bond under this framework at the end of November, followed in January by a five-year maturity issuance. From 2026 onward, these instruments are expected to gradually replace the existing portfolio of WIBOR-based issuance.