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Poland Plans To Cut Its Deficit

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Poland is considering cancelling $39 billion in treasury bonds, equivalent to 8 percent of 2012 GDP, held by private pension funds and paying the resulting pension shortfall out of its own budget, a newspaper said on Wednesday. Such a move would reduce the stock of public debt and ease immediate spending pressures, as the government would save on paying interest on the bonds and most of the pension payments are not due for years. Earlier this week Prime Minister Donald Tusk said that while he did not believe that private pension funds should "be liquidated", nor should they be "preserved at any cost."

Any transfer of the funds' liabilities to the state would raise parallels with Hungary, which effectively nationalised its private pension system in 2011. Hungary's actions were criticised by the European Union and rating agencies as a short-term fix to public finances that would be harmful in the longer-term.


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  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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