EIB loan on track

The finance ministry said that the government was at a "very advanced stage" in its negotiations for a €380 million loan from the European Investment Bank for Bank Gospodarstwa Krajowego (BGK). The government would guarantee its whole value, interest included. BGK is to use the money to create a motorways fund, which would finance loans for motorway construction. The loan is one measure to replace the failed vignette scheme.

PPW fights back

State-owned PPW Rzeczpospolita, owner of 49% of Presspublika, publisher of one of the country's leading daily newspapers, said that it would make an offer to buy out shares of Presspublika owned by the majority shareholder, Norway's Orkla Media. Presspublika's announcement came after Orkla offered to become the sole owner of the paper in a move that would be funded by the European Bank for Reconstruction and Development. Maciej Cegłowski, PPW's president, said that Orkla's takeover plan was seen as hostile and called for counteraction.

Grain output to fall

The grain harvest this year is expected to reach only 26 million tons, or 3% less than in 2002, due to a smaller sowing area and the unusually long winter, according to projections made by the Grain Traders Association. The expected lower grain supply, however, is unlikely to lead to significant price rises, though it could halt the downward trend in falling food prices, one of the principal reasons for low inflation.

State backs loans

The finance ministry said that the state would guarantee loans up to €4 billion (zł. 18 billion) in 2004-2006. The amount "should be sufficient to ensure that European Union funds are absorbed to an appropriate degree," said Piotr Sawicki, the deputy finance minister. The government has been criticized for not including loan guarantees in its calculations of public debt, as is the practice in EU member states. However, Sawicki pointed out that the government can grant guarantees when the level of public debt is less than 55% of GDP. It is expected to exceed 50% near the end of the year.