Bud-Bank and PKO BP plans create new mortgage bank by end of year

The three mortgage banks operating in Poland, HypoVereinsbank Bank Hipoteczny, owned by BPH PBK, Rheinhyp-BRE Bank Hipoteczny and Slaski Bank Hipoteczny will soon be joined by a fourth mortgage bank. The government plans to create a new mortgage bank on the basis of Bud-Bank, which is owned by Bank Gospodarstwa Krajowego (BGK), and Poland's largest retail bank PKO BP. The two banks signed a letter of intent last year, but the project moved very slowly. "On the basis of the license owned by Bud-Bank, we are planning to form a mortgage bank. I hope to finalize proceedings by the end of this year," said deputy finance minister, Jacek Bartkiewicz. The head of PKO BP, Henryk Pieronkiewicz, said that two thirds of the capital will be provided by his bank, and the rest by BGK. The deputy Finance Minister also announced that a number of foreign banks are interested in the Polish mortgage market. (Puls Biznesu, p. 3; Gazeta Wyborcza, p. 29; Prawo i Gospodarka, p. 6) A.K.