NBP: Dark Clouds Hang Over NBP Governor As Specific Accusations Take Shape

Newsweek Polska runs a source report offering some more details on the possible charges against NBP Governor Adam Glapinski amid reports suggesting that a political decision has been made to launch an investigation into his conduct.

• The piece suggests that the ruling coalition wants to accuse Glapinski of misleading the government by declaring in August 2023 that the central bank would record a PLN6bn financial gain for FY2023 that would be transferred to the stage budget. An anonymous NBP official told Newsweek that this was at odds with internal forecasts from June 2023, which showed a projected PLN10.5bn loss.
• Speaking on record, MPC's Joanna Tyrowicz and Przemyslaw Litwiniuk pointed to other alleged procedural breaches on Glapinski's part. Tyrowicz mentioned issues such as (i.a.) the unilateral editing of minutes and protocols, arbitrary restrictions on the access to information, and misleading MPC members in crucial discussions.
• However, Litwiniuk said that putting Glapinski before the Tribunal of State, which is by its nature a politicised institution, would contravene the internationally recognised judicial standards. In his view, the prosecutors and ordinary courts should investigate charges of criminal nature.
• The NBP Act stipulates that a binding court sentence is a basis for terminating the Governor's tenure, alongside a long-term illness and a relevant verdict of the Tribunal of State. Should Glapinski be ousted, First Deputy Governor Marta Kightley would take over as the central bank's chief.
• The ruling coalition has a political incentive to put Glapinski on trial, having accused him of stoking inflation, showing overt political bias and financing public spending via QE operations. It now seems that the sentiment has shifted towards pressing charges, despite the potential market reaction to Glapinski's suspension or ouster.