Bank consortium lends money to PKP to clear its ZUS bill

There is every indication that a consortium of banks comprising of Bank Rozwoju Eksportu (BRE), Commerzbank and Pekao S.A. is about to grant the cash-stricken Polish State Railways (PKP) a loan of up to zl. 300 million. The transaction could be finalized as early as next week. Unlike past loans, the latest would neither be guaranteed by the Treasury Ministry nor a commercial bank, but by PKP assets set aside as collateral. The money would be used to pay off a fraction of PKP's arrears to the Social Insurance Company (ZUS). The payment is crucial as it is a condition ZUS has set before negotiations to defer the remaining payment can start. It appears this is the first of a number of loans that PKP will require during the upcoming implementation of the Railway Act, which calls for restructuring, then commercialization and finally privatization of the railways. The consortium has lent money to PKP before, the most notable loan being the zl. 650 million that PKP was to use to buy 50 locomotives from Adtranz Pafawag. (Puls Biznesu, page 4)