Finance Ministry about to close two EUR 500 million loans from EIB

Today, the Finance Ministry is to sign an agreement with European Investment Bank (EIB) regarding a EUR 500 million loan to co-finance EU projects, which are a part of the government's National Development Program. The money could be transferred in 2004. Last week Andrzej Raczko and EIB representative Wolfgang Rothe signed another agreement concerning a EUR 500 million loan, which would be spent on "investment projects financed from the State b udget". The details have so far not been revealed, but half of the second loan should be spent by the end of 2003. The money from the EIB will allow the Finance Ministry to gain partial independence from investors who are reluctant to purchase Polish T-bonds. Debenture market analysts claim that the Ministry should have no problem with maintaining liquidity until the end of 2003. However, they are afraid of Q1 2004, when the Ministry will have to borrow zł. 36 billion from the market. (Rzeczpospolita, p. B2) M.M.