KATOWICE, Poland, May 10 (Reuters) - Poland's biggest lender, state-run PKO BP, should follow the financial market regulator's recommendation not to pay a dividend from 2016 profit, Finance Minister Mateusz Morawiecki said on Wednesday.
"From the finance ministry point of view, dividends are not the most important thing, since the budget is in a good condition. In the case of a PKO BP dividend payout, one should remember about the recommendation for banks exposed on Swiss-franc loans," Morawiecki said.
"This should be the most important argument when deciding on this bank's dividend."
PKO has said it would follow the regulator's recommendation on withholding last year's profit, but the final decision is taken by the state, which has a 29.4 percent stake in the bank.
Reporting by Wojciech Zurawski; Writing by Agnieszka Barteczko; Editing by David Goodman