Co-op banks to put up zl. 160 million to capitalize BGZ

The Treasury Ministry stake in Bank Gospodarki Zywnosciowej (BGZ) after its planned merger with co-operative banks may drop to between 47.9-56.8%. How big it will be, depends on the number of the banks that will purchase the new share issue of BGZ. According to the calculations made by the bank it needs between zl. 180 million and zl. 400 million in capital. Co-operative banks may use a third of their net profit from the previous year, regional and associated banks may use all of their profit for capitalizing BGZ. BGZ estimates the 11 regional and associated banks will contribute zl. 27.2 million, co-operative banks zl. 67.2 million and the nine affiliated banks zl. 66.3 million. The remainder of the needed capital BGZ wants to get from the European Bank for Reconstruction and Development (EBRD). (Rzeczpospolita, page B4) M.M.