Eureko delays paying PZU bonus to Treasury Ministry

Pan-European insurer Eureko, which owns a 20% stake of insurance company Powszechny Zaklad Uzezpieczen (PZU), has not paid the zl. 90.67 million bonus for PZU's financial results last year to the Treasury Ministry. According to the privatization agreement the bonus was to be paid within 14 days of the acceptance of the financial results at the annual shareholders meeting. The results were accepted at the end of June. The privatization agreement says Eureko is not obliged to pay the bonus if it proves that negative events took place in PZU. The nature of those events is not specified but it does say the negative impact should decrease the assets of the insurer by a minimum of zl. 30 million. Last year, however, the assets of PZU increased by zl. 8.39 billion. Eureko could also avoid paying the bonus if it can prove that the assets of PZU decreased before Sept. 6 last year and it did not appear in the due diligence of PZU. Officially the Treasury says only that talks about the matter are proceeding. (Prawo i Gospodarka, Aug. 12-13, page 1)