Central Bank Independence in Transition Economies

9C. Limitations on Lending 

The Bank can grant credit to the Government by purchasing Government Bills. 

The credit is limited to 2% of the anticipated budget revenues (Art. 34). In practice, the 

limit has been suspended by the budget law, where the amount of credit is 

predetermined, forcing the Bank to purchase the Government Bills. Interest rate on the 

Treasury Bills purchased from the Government is equal to the interest rate on the 

corresponding Treasury Bills sold through the regular auction organised by the NBP 

(not specified in the CB law).