Bank consortium grants Szczecin Shipyard credits with tough conditions

A bank consortium is to grant a bridging credit of $40 million to Szczecin Shipyard Porta Holding, using as guarantee shares in three companies listed on the Warsaw Stock Exchange (WSE). The banks also demanded that the Finance Ministry allow the shares to be converted into Treasury bonds, said Economy Minister Jacek Piechota. The government granted the credit guarantee on condition that the banks will not pull out of financing orders that are on the books. The shipyard management hopes the loans will enable them to complete this years contracts for building 14 ships worth $400 million. The company has also received orders for 37 ships to be completed by mid 2004. The shipyard made a loss of $100 million in 2001 and employs 5,500 while 10,000 in total work for Porta Holding. (Puls Biznesu, p. 7) K.S.