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Polish debt may top 55 pct of GDP in 2011-Dep Finmin

Published 12/01/2009, 02:24 AM
Updated 12/01/2009, 02:27 AM

WARSAW, Dec 1 (Reuters) - Poland's public debt will "almost inevitably" breach 55 percent of gross domestic product in 2011, Deputy Finance Minister Ludwik Kotecki was quoted as saying.

That contrasted with comments last week from Finance Minister Jacek Rostowski, who said Poland's debt would not top 55 percent in 2010 or 2011. [ID:nGEE5AN1T8]

But Kotecki had a different view.

"The problem is that in 2011 breeching the 55-percent level is almost inevitable," the deputy minister was quoted as saying by Dziennik Gazeta Prawna daily at a business forum.

Under Polish law, increasing degrees of fiscal cuts are triggered when public debt tops 50, 55 and 60 percent of GDP.

Poland's debt reached 47.1 percent of GDP in 2008 and most analysts say there is a high probability the 55 percent mark will be breached next year as borrowing needs rise and budget revenues remain under pressure from rising unemployment. (Reporting by Adrian Krajewski: Editing by Neil Fullick) ((adrian.krajewski@thomsonreuters.com; +48 22 653 9709; Reuters Messaging: adrian.krajewski.thomsonreuters.com@reuters.net))

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