Banks discuss converting Daewoo-FSO debts into shares

Bank Pekao SA Spokesman Robert Moreń informed PAP that his institution was in favour of dividing half of Daewoo-FSO liabilities into installments with maturity at the end of 2006, and annulling the remaining amount. Total debt of Daewoo-FSO to Pekao SA amounts to zł. 29 million. However, its total liabilities towards BPH PBK, Bank Handlowy, Pekao SA, Millenium, ING Bank Śląski and KB amount to zł. 591 million. Moreń added that conditions for reaching agreement were allowing banks to include the losses connected with the restructuring Daewoo debts into operating costs and then in turn, banks would demand paying off the liabilities without regular interest. However, it is unknown what percentage of debts the other institutions will annul, as negotiations are continuing and so far none of them have commented on the talks. Both Daewoo-FSO's President and the State have proposed converting the company's liabilities into shares. (www.onet.pl) M.M.