Poland Central Bank Faces Meeting Hurdles Without Glapinski: PAP

The potential suspension of Polish central bank governor Adam Glapinski could make it difficult to convene meetings of the rate-setting panel, a policymaker said, as an “unprecedented” legal challenge raises questions about the institution’s leadership.

The National Bank of Poland would continue to function without Glapinski, but his absence could complicate the work of the Monetary Policy Council, which sets interest rates, Ludwik Kotecki, a member of the council, told the Polish Press Agency on Saturday.

Poland’s parliamentary Committee on Constitutional Accountability on Friday approved a report recommending that lawmakers consider bringing Glapinski before the State Tribunal, which could hold him constitutionally accountable.

Read more: Poland Seeks to Put Central Bank Governor on Trial; Zloty Drops

The council could continue working largely without disruption if Glapinski remains able to convene and attend meetings, Kotecki said. If he’s suspended, one of its members would preside, with Ireneusz Dąbrowski designated to take on the role.

In that scenario, the main challenge may be convening meetings, Kotecki said, noting that the central bank has no first deputy governor and that the second deputy governor’s term expires in November. The central bank’s next scheduled policy decision is Nov. 4.

Appointing new board members has also become a political issue, with Prime Minister Donald Tusk rejecting the bank’s picks.

Kotecki said council members could still make monetary policy decisions without documents from the bank’s management board, relying on their own expertise and analysis.

The committee’s recommendation doesn’t determine when parliament will vote on the case, and the timing remains unclear. The priority, Kotecki said, is to ensure that the unprecedented situation doesn’t hurt the zloty or increase the risk premium on Polish financial assets.

Read more: Poland’s Glapinski Calls Probe Into His Conduct Baseless

The probe accuses Glapinski of misleading the finance ministry about the central bank’s 2023 profit, Ryszard Petru, a lawmaker and member of the committee, told reporters on Friday. The 150-page parliamentary report also concluded that the central bank indirectly financed the budget deficit through bond purchases during the Covid-19 pandemic, he said.

Glapinski called the accusations “baseless” and has denied any wrongdoing.