Dramatic reduction in Treasury guarantees welcomed by economists

The State Treasury will limit level of guarantees given to companies to zl. 17 billion in 2003, despite the fact that zl. 23 billion was designated for this purpose in the annual budget. Liberal economists are pleased with this plan, especially as the Treasury said it plans to further limit guarantees to zl. 4.7 billion in 2004, and then zl. 6 billion per year between 2005-2010. "This is a signal of improvement, as state guarantees are the worst way of supporting the economy," said Miroslaw Gronicki, the chief economist at Bank Millenium. The Finance Ministry has prepared a shortlist of projects and companies which will receive State guarantees.These include investments in roads and highways, shipyards, the steel sector and railways. Moreover, the Finance Ministry wants all members of the Cabinet and government agencies to first seek its approval about any pledges and guarantees they may grant. (Puls Biznesu, pp. 1, 3) M.M.