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CNBC Exclusive Interview: Marek Belka, Govenor of the National Bank of Poland

WHEN: CNBC EXCLUSIVE, today Thursday, 10th July on Squawk Box in EMEA.

Following is highlights of the unofficial transcript of a CNBC exclusive interview with Marek Belka, Governor of the National Bank of Poland with CNBC's Geoff Cutmore.

Marek Belka tells CNBC he was "embarrassed" by the publication of a secretly recorded discussion between the governor and the interior minister about the removal of the finance minister. Belka said he had "no idea" who recorded and leaked the conversation, but saw no reason to step down.

Following is a link to embeddable video clips of the interview on CNBC.com http://www.cnbc.com/id/101822335.

All references must be sourced to a 'CNBC exclusive interview'.

CNBC's Geoff Cutmore (GC): The job of the central bank is…?

Marek Belka (MB): The jobs of central bank governor is always much more safe than other jobs in the country. As I said I see no reason why I should be stepping down.

GC: Who do you think recorded the conversation and leaked it and why do you think they did it?

MB: I have no idea and I don't bother thinking about it.

GC: is there the prospect of a foreign being involved?

MB: No no no... that is not something that comes to my mind.

GC: Was there ever a deal with the government, that is, what has come out of the tapes - that you were prepared to negotiate to support Donald's tusks government, if there were economic problems, in return for the finance minister going, was there ever a deal?

MB: It was more like a lecture of an economist to someone who is by temper analytic and not at all and economist… so he tries to learn what can be done, what is being done in a situation of extreme crisis in the financial sector, and of course once you get eavesdropped, this is by itself a very unpleasant thing because of your colourful language, (so to say), but also the person who is doing this does not know a bit about what the conversation is about… so what we can get, and this is exactly what happened… is a cooked up narrative, that is very difficult to fight.

GC: What did you feel like when you first heard these leaked tapes publicised, was it like being caught cheating on your wife.. or did you feel personally betrayed, perhaps by someone in the government?

MB: I just don't spend say my psychological capital to think about who might have done it…I was very sad and very disappointed…. I'm probably tougher that I seem, I'm doing ok.. and the bank is in full swing of every normal and unusual (if necessary) activities and I'm fighting the potential loss of creditability.

GC: It must have made the last council meeting and very uncomfortable affair?

MB: I was very embarrassed and I was sorry for the damage that might have been death to the bank or to the council of monetary policy….we have decided to mend fences and judging by the discussions on monetary policy issues, you wouldn't find any impact.

GC: You talked about credibility, and the need to rebuild credibility, and to quote the tape.. "We have this F-ing monetary policy council, but we're able to play with it.." What did you mean by that? Are you able then to manipulate the outcome to make the policy, the policy that you want and the government wants?

MB: Well this was one of the statement that made the council nervous probably more than the colourful descriptions I have been using here and there, we have to distinguish instruments of monetary policy and instruments of financial stability.

GC: Was that just bravado, and in fact you can't fix the outcome of the council?

MB: There is no possibility to circumvent the monetary council policy.

- ends -


Formore information contact:

Hugo Foulds, Director of Communications, EMEA

CNBC

t: +44 (0)20 7653 9398

e: hugo.foulds@cnbc.com