Reuters, Warsaw :
Poland’s main opposition party celebrated its first national election win in a decade on Monday, after its candidate for the presidency unexpectedly defeated incumbent Bronislaw Komorowski in a result that unnerved financial markets.
Andrzej Duda won Sunday’s vote by 52 percent to 48 percent, an exit poll showed. His Law and Justice party is close to the Catholic church, socially conservative and considered less business-friendly and less pro-European Union than the governing Civic Platform.
reflecting in part plans outlined by Duda to convert Swiss-franc denominated mortgages into zlotys at historical exchange rates.
Financial regulator KNF estimates the plan, which the head of the central bank has rejected, would cost Polish banks up to 25 billion zlotys.
In Poland, the president nominates the head of the central bank, as well as heading the armed forces and having a say in foreign policy and the passage of legislation.
“There is a risk linked to uncertain election results in autumn, and there is also a risk of fiscal easing. These two risks are being priced in by investors today,” said Andrzej Bowtruczuk, a bond dealer at mBank in Warsaw.
Parliamentary elections are due in late October, and the defeat for Komorowski, an ally of Prime Minister Ewa Kopacz and a former Civic Platform lawmaker, will weigh on the party’s chance of re-election.
Latest opinion polls give the alliance led by Law and Justice a marginal lead over Civic Platform, and Law and Justice parliamentary caucus head Mariusz Blaszczak said on public radio he expected party leader Jaroslaw Kaczynski to be the next prime minister.
Sunday’s vote also reflected a desire among voters for new faces, and a sense that the fruits of Poland’s economic upturn have not been shared out equally.
The zloty currency was down 0.5 percent against the franc and 0.2 percent against the euro on Monday CHFPLN=EURPLN=D3, recouping part of the losses it sustained in after-hours trading on Sunday.
Official election results have yet to be released, but Komorowski conceded defeat late on Sunday.
Poland’s main opposition party celebrated its first national election win in a decade on Monday, after its candidate for the presidency unexpectedly defeated incumbent Bronislaw Komorowski in a result that unnerved financial markets.
Andrzej Duda won Sunday’s vote by 52 percent to 48 percent, an exit poll showed. His Law and Justice party is close to the Catholic church, socially conservative and considered less business-friendly and less pro-European Union than the governing Civic Platform.
reflecting in part plans outlined by Duda to convert Swiss-franc denominated mortgages into zlotys at historical exchange rates.
Financial regulator KNF estimates the plan, which the head of the central bank has rejected, would cost Polish banks up to 25 billion zlotys.
In Poland, the president nominates the head of the central bank, as well as heading the armed forces and having a say in foreign policy and the passage of legislation.
“There is a risk linked to uncertain election results in autumn, and there is also a risk of fiscal easing. These two risks are being priced in by investors today,” said Andrzej Bowtruczuk, a bond dealer at mBank in Warsaw.
Parliamentary elections are due in late October, and the defeat for Komorowski, an ally of Prime Minister Ewa Kopacz and a former Civic Platform lawmaker, will weigh on the party’s chance of re-election.
Latest opinion polls give the alliance led by Law and Justice a marginal lead over Civic Platform, and Law and Justice parliamentary caucus head Mariusz Blaszczak said on public radio he expected party leader Jaroslaw Kaczynski to be the next prime minister.
Sunday’s vote also reflected a desire among voters for new faces, and a sense that the fruits of Poland’s economic upturn have not been shared out equally.
The zloty currency was down 0.5 percent against the franc and 0.2 percent against the euro on Monday CHFPLN=EURPLN=D3, recouping part of the losses it sustained in after-hours trading on Sunday.
Official election results have yet to be released, but Komorowski conceded defeat late on Sunday.
