Banks grant Huta Katowice yet another credit reprieve

A consortium of six banks including Bank Slaski, BPH, Pekao S.A. Bank Handlowy, PBK and Kredyt Bank have agreed to postpone the payment of outstanding credit installments by Huta Katowice (HK) steel mill until the end of June 2001. Over two years ago the banks gave HK a zl.400 million credit. After British-Dutch concern Corus withdrew last year from investment in HK, the mill has been in dire financial straits. It failed to pay the interest on the outstanding credit and only the intervention of Towarzystwo Finansowe "Silesia" and another credit from PKO BP, Poland's largest retail bank, helped pay the outstanding installments. Since HK is still in trouble, its management asked the government to negotiate with the creditors. At the request of Treasury Minister Aldona Kamela-Sowinska, the banks agreed to wait another month. Additionally, under a new steel sector restructuring program part of HK's liabilities may be written off. (Gazeta Wyborcza, p. 21) A.Z.