Republic of Poland: Selected Issues Paper

IMF Staff Country Reports, June 26, 2014

Source details

Canonical URL

Republic of Poland: Selected Issues Paper

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: June 26, 2014
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781498367868.002

Overview and scope

• This Selected Issues paper considers the case of Poland to analyze global financial spillovers to emerging market (EM) sovereign bond markets.
• Foreign holdings of Polish government bonds have increased substantially over the last decade.
• The paper examines how foreign participation in local-currency sovereign bond markets affects financing conditions and sensitivity to global market sentiment.

Key findings

• Foreign participation provides an additional source of financing and reduces sovereign yields.
• Foreign participation has given rise to concerns about increased sensitivity to shifts in market sentiment.
• The analysis suggests that foreign participation plays an important role in transmitting global financial shocks to local-currency sovereign bond markets by:
  • increasing yield volatility, and
  • beyond a certain threshold, amplifying these spillovers.

Policy implications and considerations

• Monitor the size and composition of foreign holdings in local-currency sovereign bond markets given their role in transmitting global shocks.
• Consider measures to mitigate excessive yield volatility associated with large foreign participation, recognizing the trade-off between broader investor bases and increased sensitivity to global financial conditions.

Subjects and keywords

• Subject: Expenditure, Financial institutions, Labor, National accounts, Pension spending, Pensions, Private savings, Sovereign bonds, Taxes, Value-added tax
• Keywords: Africa, Asia and Pacific, CR, Europe, Global, intercompany debt, investor base, ISCR, NFC debt, Pension spending, Pensions, Private savings, saving acceleration, Sovereign bonds, Sub-Saharan Africa, Value-added tax, VAT revenue

International Monetary Fund. Republic of Poland: Selected Issues Paper (IMF Staff Country Reports 2014, 174).

Content in this bundle

• Republic of Poland: Selected Issues; IMF Country Report 14/174; June 5, 2014
  • Republic of Poland: Selected Issues; IMF Country Report 14/174; June 5, 2014 (Markdown version)
  • Republic of Poland: Selected Issues; IMF Country Report 14/174; June 5, 2014 (PDF)