Credit Suisse First Boston offers to bail out hospitals

Credit Suisse First Boston (CSFB), worried by the deteriorating situation of Polish hospitals, is preparing its own debt-securitization program to help the ailing sector and is currently holding talks with health service representatives. The bank would see around 200 hospitals undergo shock therapy that would help them find their feet financially. "There are a number of ideas about how to securitize the hospitals' debts. We may finance the payment of overdue loans they have taken. These would then be converted into securities and sold on foreign markets," said Marek Gul, managing director of the Polish branch of CSFB. According to Gul, despite the fact that securitization programs are rare in Europe, the project will attract investors who will provide the $150 million necessary for the deal to go ahead. Although the government tends to turn a blind eye to the poor state of the country's hospitals, it can no longer ignore their debts which have already amassed to around zl. 6.5 billion - zl. 7.5 billion and are soaring at an exorbitant rate. At the end of 2001 overdue payments stood at 'only' zl. 5.3 billion. (Puls Biznesu, p. 9) J.K.