EC fears that the government will subsidize the steel sector

Over recent weeks, the European Commission has had increasing doubts about the domestic steel sector. Brussels is afraid that the government will grant state aid to steel companies, which contravenes what the negotiators for both sides have decided. One of the mills in question, Steel Mill Częstochowa, has had its restructuring program analyzed by the Competition and Consumer Protection Office (UOKiK). The program has been accepted, as the company will not receive public aid. "The program will be carried out through a division of assets. Civil-legal creditors will set up a creditors' company and agree to a 70% debt reduction, which will then be transformed into shares. Later, the stock and production assets will be sold to an investor," said Industrial Development Agency president, Arkadiusz Krężel. He also added that the mill owed about zł. 800 million to banks, and half that to the state. The state's receivables would be secured by non-production assets, which would be used for creating a techno park. (Puls Biznesu, pp. 1, 5) M.M.