National Bank of Poland Signs Swap Deal With Ukraine Central Bank

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The FINANCIAL — The National Bank of Poland said on December 22 it has signed a swap deal for up to 4 billion zlotys ($1.03 billion) with the central bank of Ukraine, a move it says should help to stabilize Ukraine, according to Nasdaq.

“The swap deal signed between the Polish and Ukrainian central banks should increase confidence in the Ukrainian economy and limit the risk of turbulence in financial markets that could have a negative impact on the economy of the entire region, including Poland,” said Marek Belka, governor of the National Bank of Poland.

“For the first time Poland is exporting stability. Through similar deals we previously imported stability,” he added.

Mr. Belka said the move may lead to higher trade between the two countries. Poland has strong economic ties to the eurozone, particularly the currency bloc’s biggest economy Germany.

Poland has taken steps to support the government in Kiev since the beginning of the separatist conflict in eastern Ukraine. The two countries were roughly comparable in terms of economic output in 1989 when communism collapsed in Europe. However, Poland has since tripled the size of its economy, while Ukraine has been largely stagnant.

 

See also  Ukraine: "Russian forces, with the support of aviation, focused on capturing the city of Sievierodonetsk"

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