Analysts hint bonds seem likely to replace loans

Brokerage houses CDM and Bank Pekao analysts estimate that corporate bonds are a good alternative to bank deposits and T-bonds. The bank will continue to sell its own bonds, but also plans to organize bond issues for other companies, the total value of which, is estimated at zł. 1 billion in 2003. Pekao has sold bonds worth zł. 2 billion since late 2002. The main advantage of such bonds is that they are exempt from the 20% tax on savings. According to Pekao analysts, other companies will follow this lead and issue their own bonds. "We are conducting negotiations with several corporations," said CDM's deputy president Adam Niewiński. According to unofficial sources, one of the interested companies might be PKN Orlen. "The quality of bank loan portfolios is very bad, so obtaining loans is not easy. We expect that companies will look for other and cheaper sources of financing," said Pekao management board member Cezary Smoroszczewski. (Parkiet, p. 6) M.M.