Finance Ministry approves steel restructuring plan

The Finance Ministry has agreed to a plan for restructuring the steel sector that includes a bond issue worth between zl.1 billion and zl.1.5 billion. Under the plan, proposed by the Economy Ministry, the Industrial Development Agency (ARP) would be responsible for the bond issue, with the funds raised used to finance the restructuring. The Finance Ministry had earlier been very critical of the plan, but following its change of heart the government is tomorrow expected to approve the draft bill and submit it to parliament as urgent business. The 12 items contained in the bill cover, among other things, delaying the repayment of debts and interest by steel mills on the condition that they service their current liabilities. Another part of the plan envisages the creation of the Polish Steel Mills (PHS) conglomerate, consisting of the Katowice, Sendzimira, Cedler and Florian mills. However, the Katowice mill may still be sold to one of two potential investors, either a consortium made up of Luxembourg-based Arbed, Usinor of France and Thyssen Krupp of Germany, or Ispad of India. Bidders have until July 17 to submit final offers. (Puls Biznesu, p. 15) T.J.