Polish Central Bank Chief Calls Probe Into His Conduct Baseless

Polish central bank Governor Adam Glapinski dismissed a parliamentary inquiry into his alleged wrongdoing as baseless and warned against its potential negative consequences for the country.

Lawmakers are set to complete their long-awaited probe into the governor’s conduct this week, opening the path for the parliament to vote on whether Glapinski should face a trial in front of a special court for state officials.

Polish Prime Minister Donald Tusk, who is facing a general election next year, has previously pledged to remove the governor from office for his alleged political entanglement with the former ruling nationalists.

“I want to assure you that the National Bank of Poland won’t succumb to any political pressure,” Glapinski said at a monthly news conference on Thursday. “This whole probe is baseless and harmful for the interests of Poland.”

The allegations against the governor include claims that the central bank indirectly financed the budget deficit through bond purchases during the Covid-19 pandemic, misled the finance ministry on expected central bank’s profit in 2023 and intervened in the zloty without proper authorization.

Glapinski has also faced criticism for cutting interest rates before the 2023 election despite inflation running way above the central bank’s target. The governor has repeatedly rejected the charges and refused to participate in the inquiry.

The parliamentary committee is expected to adopt its final report on Friday. Tomasz Trela, a lawmaker from Tusk’s ruling coalition, said on Tuesday that the probe broadly upheld accusations made again the governor.

The investigation has continued on and off for two years and could in theory lead to a suspension of Glapinski from office ahead of a parliamentary election in late 2027. At some point the coalition has quietly abandoned the plan due to concerns that a legal battle could unsettle investors.

Separately, tensions have also been growing over the appointments to the central bank’s management board, threatening to disrupt day-to-day operation and its ability to respond to potential crisis situations.