Polish leader faces questions about timing of bond purchase

Jun 8, 2022, 6:41 AM | Updated: 7:14 am

WARSAW, Poland (AP) — Poland’s prime minister faced questions Wednesday over his purchase of 4.6 million zlotys (over $1 million) in Polish treasury bonds, amid suspicions he made an investment that traditionally offers protection against inflation at a time when authorities were officially saying the inflation risk was low.

Opposition lawmakers have demanded that Prime Minister Mateusz Morawiecki explain in parliament whether he bought the bonds in 2021 knowing that rising inflation was on the horizon despite government proclamations.

Prices in May soared almost 14% compared to a year ago, lowering the standard of living for ordinary Poles. Energy costs in particular have skyrocketed, while mortgage rates are rising as the central bank raises interest rates on loans much more than on deposits.

Donald Tusk, the leader of the main opposition party, said there’s something “deeply immoral” in the actions of Morawiecki, who for years served as chairman of the board for a large bank in Poland.

“A few months ago he did not tell the Poles that there would be inflation. But he took care of himself and bought treasury bonds that protected his money against inflation,” Tusk, leader of the pro-market Civic Platform, said this week.

Morawiecki declared the bond purchase in an obligatory yearly financial report.

The government has refused requests by Polish media to provide details of the investments. Morawiecki, facing reporters’ questions on Tuesday, said investing in state treasuries serves the good of the country.

But government spokesman Piotr Mueller acknowledged Tuesday that the bonds could offer some protection against inflation.

“Every citizen has the right to buy them. Bonds are constructed in such a way that you can use them to fight the effects of inflation,” Mueller said.

Morawiecki has blamed the high inflation on Russia’s war against Ukraine, but economists note that other factors are also at play, including shortages and supply problems resulting from pandemic lockdowns.

The Polish central bank had insisted for many months last year — despite rising prices — that inflation would not be a problem before finally moving in the fall to raise interest rates. Meanwhile the Polish government has also cut taxes on fuel and energy and offered cash bonuses to give some relief to citizens, but not enough to offset the level of inflation.

The investments of Morawiecki and his family have come under scrutiny before.

His wife, Iwona, earned over 14 million zlotys ($3.5 million) for selling plots of land that the couple had bought for 700,000 zlotys in 2002 from the Catholic Church, according to the TVN broadcaster.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Arizona and New York attorneys feud over extraditing suspect...

Associated Press

Why Alvin Bragg and Rachel Mitchell are fighting over extraditing suspect in New York hotel killing

Maricopa County Attorney Rachel Mitchell says she isn't into extraditing a suspect due to her lack of faith in Manhattan’s top prosecutor.

2 days ago

A Gila monster is displayed at the Woodland Park Zoo in Seattle, Dec. 14, 2018. A 34-year-old Color...

Associated Press

Colorado man dies after being bitten by pet Gila monster

A Colorado man has died after being bitten by his pet Gila monster in what would be a rare death by one of the desert lizards if the creature's venom turns out to have been the cause.

3 days ago

Police clear the area following a shooting at the Kansas City Chiefs NFL football Super Bowl celebr...

Associated Press

1 dead, many wounded after shooting at Kansas City Chiefs’ Super Bowl victory parade

One person died after 22 people were hit by gunfire in a shooting at the end of the Kansas Chiefs' Super Bowl victory celebration Wednesday.

10 days ago

This image from House Television shows House Speaker Mike Johnson of La., banging the gavel after h...

Associated Press

GOP-led House impeaches Homeland Security Secretary Mayorkas — by one vote — over border management

Having failed to impeach Homeland Security Secretary Alejandro Mayorkas the first time, House Republicans are determined to try again Tuesday.

11 days ago

Defense Secretary Lloyd Austin, right, and Kenya's Defense Minister Aden Duale, left, listen during...

Associated Press

Defense Secretary Lloyd Austin hospitalized with bladder issue

Defense Secretary Lloyd Austin has been hospitalized following symptoms pointing to an “emergent bladder issue."

13 days ago

Joel Osteen, the pastor of Lakewood Church, stands with his wife, Victoria Osteen, as he conducts a...

Associated Press

Woman firing rifle killed by 2 off-duty officers at Houston’s Lakewood Church run by Joel Osteen

A woman entered the Texas megachurch of Joel Osteen and started shooting with a rifle Sunday and was killed by two off-duty officers.

13 days ago

Sponsored Articles


Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.


Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.


Canvas Annuity

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

Polish leader faces questions about timing of bond purchase