Desperate hospitals handed billions of złoty thanks to a 'financial trick'

Next year Polish hospitals and clinics will receive zł.2.1 billion from the government, nevertheless, the public budget will not be strained, claims Marek Belka's cabinet. Thanks to a financial trick the hole in the budget won't be any larger in 2005. The Government's loan for severely indebted hospitals will be treated as budget expenditure, which will not increase next year's public deficit. The chief economist at BPH Bank claims, however, that the chances of having the loan paid back by the hospitals are few. Previously, hospitals were to have been helped by commercial banks, but they turned down the offer saying it was unattractive. Last month, Parliament decided the National Health Fund (NFZ) cannot provide credit for hospitals because it does not have the status of a banking institution. (Parkiet, p.7) J.J.