Remember the time of the coronavirus? Everyone would like to forget these days, erase history. Unfortunately, it's not that easy. The bill issued by the plague must be paid to this day, and the debts incurred to fight the crisis will pay off generations.
That's the long one! Where did they come from, and why does the full planet endure from another illness called “inflation”?
The first cases of coronavirus illness (in Poland the first cases were registered in March 2020) were introduced, the Act of 4 July 2019 on the strategy of improvement institutions, which defined the principles of the strategy of institutions of improvement and modes of cooperation between institutions forming a strategy of institutions of development, the function of the Polish improvement Fund and the conditions for financing entrepreneurs by the Polish improvement Fund. “The strategy of institutions of development” is created by: Polish improvement Fund, Bank Gospodarstwa Krajowego, Polish Agency for Enterprise Development, Export Credit Insurance corp Spółka Akcyjna, Polish Investment and Trade Agency Spółka Akcyjna, Agency for manufacture improvement Spółka Akcyjna.
The above law deserves attention to the fact that between 2019 and 2028 the maximum limit of spending of the state budget resulting from the financial impact of the Act is PLN 300 million, including for the years 2019 – 2025 the fund is virtually PLN 0, for the years 2026 – PLN 50 million, 2027 – PLN 100 million and PLN 150 million respectively. (source : https://isap.sejm.gov.pl/isap.nsf/download.xsp/WDU20190001572/T/D20191572L.pdf)
So much for admission.
What more delicate observers of public life will immediately see that PFR and BGK in “covid everyday life” as backing institutions have played a very crucial function and present the 2 heroes will focus our attention. To date, the activities of the PRF group focused alternatively on innovation development, the improvement of worker Capital Plans or support for technological improvement for companies specified as Microsoft or Google. In April 2020, PFR begins to presume the function of an institution that will aid entrepreneurs as part of the crisis shield. And it wouldn't be bad if it wasn't for the fact that in the PFR Act, this institution was not getting money for specified extended and so broad public activities.
At this point, there is simply a solution that could have escaped even the most attentive observers, and I am convinced that the average Kowalski did not know that this fund could borrow or issue bonds with a warrant or warrant of repayment by the Treasury.
This is what is happening on 27 April 2020, cited: “The PFR debut as a bond issuer is undoubtedly the success of the company”(...) “The Polish improvement Fund aired on Monday, as part of a bond issuance program with a full value of up to PLN 100 billion, four-year bonds with a nominal value of PLN 16.3 billion. The issue was carried out in connection with the entrustment of the PFR by the Council of Ministers, pursuant to Article 21a(1) of the Act on the strategy of improvement Institutions and the Resolution of the Council of Ministers of 27 April 1920 on the implementation of the "Government Programme – a financial shield of the Polish improvement Fund for tiny and medium-sized enterprises". The issued bonds are guaranteed by the State Treasury. All the bonds issued were covered by the bank bondholders.’ (source : https://pfrsa.pl/investorial relations/bonds-pfr.html)
The construction of Bank Gospodarstwa Krajowego is little complex due to the fact that the Act was created on 14 March 2003, and the Bank itself was created by the Regulation of the president of Poland of 30 May 1924 and is simply a state bank within the meaning of the Act of 29 August 1997. - Bank law. , however, as I initially noted, BGK was incorporated in July into a improvement instinct conglomerate in July 2019.
In time BGK begins to presume the function of an intermediary in the issuance of bonds and financing of various government funds, e.g. the Government Fund of Poland Management, COVID-19, Aid Fund, Road Fund, Armed Forces Support Fund, Creditor Fund.
These funds are reflected in Polish law. And so, on the example of the Homeland Defence Act of 11 March 2022. Bank Gospodarstwa Krajowego draws up a financial plan of the Fund and creates the Fund (Articles 41 and 42 ) which is mainly intended to fund defence needs of the Republic of Poland as defined by the Minister of National Defence. At 2.2% of GDP in 2022 and at least 3% of GDP in 2023 and subsequent years. It is worth noting that these amounts are around PLN 80-100 billion.
It is worth noting at this point that “The funds of the Fund pay the commission remuneration due to the operation of the Fund to Bank Gospodarstwa Krajowego” and specified provisions are included in any specified Act involving Government Funds. A horse with a row to scope the agreements concluded between the government and these institutions. In the era of parliamentary work during the Covid period, I was able to find that the PFR had an agreement with the government of 1.5% bond issue commission.
The further into the forest, the more trees.
But this is not the end of history. due to the fact that the very fact that bonds are issued by various funds is not frightening. Yes, for the president of the ultimate Chamber of Control, Marian Banas, this is shameful. The government thus avoids debt over the Constitutional Debt, hinders its transparency and transparency in the financing of the state's action, throwing further social ideas on the market, drives the already red-hot inflation – as the president of NIK has warned at many conferences and parliamentary speeches from the study on the implementation of budgetary controls.
The fact that the main purchaser of Polish bonds is the institution of the European Investment Bank, which does not pay taxes on advanced incomes for the acquisition of bonds in Poland, is frightening.
Deputy Minister of Finance – Jan Sarnowski in March 2021, this is how he explained “the European Investment Bank is not a central bank. The Framework Agreement between the Republic of Poland and the European Investment Bank of 1 December 1997 (Journal of Laws of 2000, No 28, item 348), concerning EIB activities in Poland, states in Article 3 that “It is recognised as an global financial institution.” “The interest and any receivable resulting from the activities provided for under this Agreement, as well as the assets and receipts of the European Investment Bank related to that activity, shall be exempt from taxation. Any action of the European Investment Bank on the territory of Poland in connection with any substance covered by this Agreement will not consequence in a taxation on the Bank or its assets’.
Any Pole with savings, investing money in various investments pays Belka's tax, but in the opinion of Minister Sarnowski, “...the likely consequence of the deficiency of regulations would not be increased gross from fiscal securities, as in the absence of an exemption, central banks would not get government bonds. Under this assumption, the regulations do not entail a decrease in budgetary revenues, but only a simplification in the expenditure on the handling of the State Treasury debt, linked to an increase in request for bonds. This means that the affirmative effect of applying the Regulations is likely to be sufficiently high, resulting only from the simplification of the State Treasury debt.’ (source : consequence to explanation No. 19655 by Mr Grzegorz Braun
https://www.sejm.gov.pl/sejm9.nsf/interpelation.xsp?type=INT&nr=19655)
It is not known what led Mr. Sarnowski to present specified a position. However, it is known that the servilistic attitude towards the European Union does not service Poland.
As in the lentil, it is evident that the Ministry of Finance is as common as possible to external financial institutions at the time erstwhile Poles are being charged fresh taxes. This may be due to the fact that Mrs Teresa Czerwińska, erstwhile Deputy Minister of Finance in the government of Mateusz Morawiecki from 2018 to 2019, is on the board of the EIB until 2020, which would warrant the certainty and stableness of the agreements concluded between the government administration and the EIB.
Today he is simply a vice president, but in fresh days in many media, it was possible to read that he was fighting for the president's seat. It is not hard to get the impression that government officials are given new, higher, better paid functions in European structures for oppressing their own nation, while at the same time passiveness and blindness of opposition environments, focused on their own interests, more than on the interests of citizens.
Piotr Sterkowski
