“The NBP achieved a very good financial result for the last year,” said the NBP governor Adam Glapiński during the Wednesday press conference. He also said that it was due to the hard work of several NBP departments.
“This profit will be significantly higher than last year, and then it was over PLN 9 billion” – continued Adam Glapiński. When asked what exactly this result was, he specified that “it is significantly higher than PLN 10 billion”.
“Usually, we provide information on the NBP result in March, after the audit. But this time I do it earlier, because the defense law was presented, in which it was stated that the NBP’s profit – apart from the 5% that remains in the bank – will serve the defense effort and the purchase of new weapons. I hope it will be so and we are glad that we will be able to contribute to it “- said Adam Glapiński, quoted by PAP.
Pursuant to the Act on the National Bank of Poland currently in force (Article 69 (4)) “Within 14 days from the date of approval of the NBP annual financial statements, a part of the annual NBP profit (payment from the NBP profit) shall be transferred to the state budget”. the money contributes to the state budget and can be spent on various purposes. The contribution from the NBP profit is transferred in the amount of 95% of the profit of the National Bank of Poland, the remaining amount goes to the reserve fund. This is a long practice, for example – in 2012, 5, 2 out of PLN 5.5 billion of the NBP profit, and in 2019 – 7.4 out of PLN 7.8 billion of the NBP profit.
The draft law on the defense of the Fatherland submitted by the government assumes, however, that payments from the NBP profit will be allocated directly to a new special purpose fund, namely the Armed Forces Support Fund. In such a situation, the funds from the NBP would be a significant support for the defense budget, and at the same time would not end up in the general state budget.
For now, however, the Law on the Defense of the Fatherland is a draft and it is not known when it will be adopted. Theoretically, however, it is possible to support the modernization of the Armed Forces through the profit of the National Bank of Poland also in the current legal state. This would happen if the amount transferred to the budget (in accordance with the existing regulations) was then transferred to the Armed Forces Modernization Fund, recently funded with PLN 6.3 billion, as a result of the amendment to the Budget Act for 2021. It should be mentioned, in accordance with the draft law on the defense of the Fatherland, the resources of the Armed Forces Modernization Fund will become the resources of the new Armed Forces Support Fund when the law enters into force.
Therefore, if the deadline for transferring the contribution from the NBP profit for 2021 to the budget expires before the provisions of the new act enter into force, the decision to transfer it for purposes related to the modernization of the army will be in the hands of the government, including the Ministry of Finance and the Ministry of National Defense. So far, the question of whether the NBP profit contribution will actually be used for defense purposes remains open.