Poland’s only state-owned bank, BGK is to issue income bonds for the financing of the national road network, whose construction has been hampered by the scrapping of almost half of the original development plans by the government recently.

The issuing of the income bonds are billed not to have an effect on the budget deficit, the Dziennik Gazeta Prawna daily reports.

The daily writes that the bond debts are to be paid off by the revenue generated by already existing infrastructure, such as road tolls and car parks.

Such a financing method is used in the UK, where social care centres, hospitals and prisons are built with borrowed money.

The ruling Civic Platform has already petitioned for a bill in Parliament to allow the bank to issue such bonds, the daily informs. (jb)