## Republic of Poland: Selected Issues Paper

_IMF Staff Country Reports, June 26, 2014_

## Source details

**Canonical URL:** [Republic of Poland: Selected Issues Paper](https://www.imf.org/en/publications/cr/issues/2016/12/31/republic-of-poland-selected-issues-paper-41679)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/republic-of-poland-selected-issues-paper-41679/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/republic-of-poland-selected-issues-paper-41679/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/republic-of-poland-selected-issues-paper-41679/bundle-manifest.json)

## Bibliographic details
- Published: June 26, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498367868.002

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### 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).*

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## 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)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14174.pdf.md){rel="alternate" type="text/markdown"}
  - [Republic of Poland: Selected Issues; IMF Country Report 14/174; June 5, 2014 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14174.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/republic-of-poland-selected-issues-paper-41679_