Bank bill slowdown could spare BPH
With the legislation removed from a "fast-track" procedure that required a vote by Feb. 28, a special commission examining consolidation plans will have more time to consider alternative proposals.
Among the options is a version that would only include banks that are 100% government-owned in the consolidation plan, said Miroslaw Bojanczyk, deputy director of the banking systems and financial institutions department of the Finance Ministry.
Under such a proposal, BPH, which is only 46% owned by the State Treasury, would be exempt. The remainder of the shares are privately held. The plan would also exempt Polski Bank Rozwoju SA (Polish Development Bank), as the Treasury holds 63%.
Both are among the banks proposed for consolidation with Bank Handlowy w Warszawie SA and Bank Polska Kasa Opieki SA (Pekao SA), respectively.
Although legislation does not name specific banks, current government plans call for consolidating Pomorski Bank Kredytowy SA and BPH with Bank Handlowy. Meanwhile, Powszechny Bank Gospodarczy, Bank Depozytowo-Kredytowy SA and the Polish Development Bank would be consolidated with Pekao SA. Following these consolidations, umbrella banks Bank Handlowy and Pekao SA would be privatized.
Exempting BPH from this plan could free up $6 million in aid to the bank from the U.S. Treasury Department. The agency has withheld the funds until it sees if the bank is included in the consolidation, according to a source in the agency. (See WBJ, Feb. 9-15.)
The U.S. department, along with banking analysts, have criticized the inclusion of BPH in bank consolidation, because it was partially privatized in 1994. Merging it with other state banks would undo this step toward full privatization, analysts said.
By excluding BPH, the government could also open the door to strategic investors. Among these, market speculation has focused on GE Capital, which was supposedly interested in BPH.
A GE Capital spokesman had no comment earlier this week on a BPH deal, except to say that the U.S. financial giant was interested in Poland. GE Capital bought into Solidarnosc Chase D.T. Bank SA last year, saying the purchase of the Gdansk-based bank was "a platform to bring in (financial) services." (See WBJ, Aug. 25-31, 1995.)
PBK SA is also likely to welcome any change in the plan as it opposed the merger plan, Bojanczyk said.
Among the options is a version that would only include banks that are 100% government-owned in the consolidation plan, said Miroslaw Bojanczyk, deputy director of the banking systems and financial institutions department of the Finance Ministry.
Under such a proposal, BPH, which is only 46% owned by the State Treasury, would be exempt. The remainder of the shares are privately held. The plan would also exempt Polski Bank Rozwoju SA (Polish Development Bank), as the Treasury holds 63%.
Both are among the banks proposed for consolidation with Bank Handlowy w Warszawie SA and Bank Polska Kasa Opieki SA (Pekao SA), respectively.
Although legislation does not name specific banks, current government plans call for consolidating Pomorski Bank Kredytowy SA and BPH with Bank Handlowy. Meanwhile, Powszechny Bank Gospodarczy, Bank Depozytowo-Kredytowy SA and the Polish Development Bank would be consolidated with Pekao SA. Following these consolidations, umbrella banks Bank Handlowy and Pekao SA would be privatized.
Exempting BPH from this plan could free up $6 million in aid to the bank from the U.S. Treasury Department. The agency has withheld the funds until it sees if the bank is included in the consolidation, according to a source in the agency. (See WBJ, Feb. 9-15.)
The U.S. department, along with banking analysts, have criticized the inclusion of BPH in bank consolidation, because it was partially privatized in 1994. Merging it with other state banks would undo this step toward full privatization, analysts said.
By excluding BPH, the government could also open the door to strategic investors. Among these, market speculation has focused on GE Capital, which was supposedly interested in BPH.
A GE Capital spokesman had no comment earlier this week on a BPH deal, except to say that the U.S. financial giant was interested in Poland. GE Capital bought into Solidarnosc Chase D.T. Bank SA last year, saying the purchase of the Gdansk-based bank was "a platform to bring in (financial) services." (See WBJ, Aug. 25-31, 1995.)
PBK SA is also likely to welcome any change in the plan as it opposed the merger plan, Bojanczyk said.
