Cabinet expected to approve zl.1 billion over two years for steel sector

The Cabinet is expected to give its approval today for a steel sector restructuring program under which zl.1 billion is to be set aside for new investments in the years 2002 and 2003. This means that just three mills, Huta Sendzimira, Huta Florian and Huta Cedler, will receive financial backing from the Economy Ministry. Meanwhile, creditors of a fourth mill, Huta Katowice (HK), are believed to be considering the sale of its debt of more than zl.250 million. According to unofficial information quoted by Puls Biznesu, a possible contender to buy HK's liabilities is Raiffeisen of Austria. Should the transaction be completed, further doubt would be cast on HK's survival, making the consolidation of the sector even more difficult. (Puls Biznesu, p. 3) P.J.