BRE Bank raises its stake in Elektrim to cover loans

BRE Bank yesterday defended its double-or-quits strategy of raising its stak e in ailing conglomerate Elektrim. BRE has boosted its direct Elektrim holdi ng to 29%, the latter said last week. BRE Chief Executive Wojciech Kostrzewa said the Bank sought regulatory permission this month to increase its stake to over 33% due to the possibility that loans secured against Elektrim share s would default, forcing the bank to further increase its stake. Kostrzewa s aid in 2003 BRE would build its retail banking, scale back its pensions enga gement and expand its corporate operations. In related news, BRE decided to incorporate partially-controlled Bank Czestochowa (BC) into its structures a nd take the name off the market. BC, together with mBank and MultiBank, last year accounted for a quarter of the group's total losses of over zl. 300 mil lion. (Puls Biznesu, p. 7; Reuters) J.K.