Polish financial firms call for corporate bond market intervention

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31/03/2020 09:48

WARSAW, March 31 (Reuters) - Polish financial companies have
appealed to the government to intervene in the country's
corporate bond market, as the economic fallout from the
coronavirus outbreak may prevent issuers from being able to
repay bonds when they mature. 
    The Association of Financial Companies in Poland, which
represents more than 100 smaller financial firms, said that
without the government's help, the 110.5 billion zloty ($26.70
billion) corporate bond market may collapse. 
    "The lack of coordinated assistance, addressed
simultaneously to investors and issuers who have issued bonds in
other market realities, may result in the collapse of the
financial market," the association said in a statement.
    Among other solutions, the lobby has proposed that
investment funds could participate directly in the central
bank's open market operations and that government institutions,
including the central bank, could start purchasing corporate
bonds on secondary market.
    As of Tuesday, 2,132 people had tested positive for
coronavirus in the country of 38 million, while 31 people had
died, according to the health ministry.


($1 = 4.1385 zlotys)

 (Reporting by Agnieszka Barteczko; Editing by Kirsten Donovan)
 ((agnieszka.barteczko@thomsonreuters.com; +48226539700; Reuters
Messaging: agnieszka.barteczko.reuters.com@thomsonreuters.net))