Gdynia Shipyard follows in the footsteps of Szczecin

Following Szczecin Shipyard's bankruptcy there are now rough sees ahead for the Gdynia Shipyard Group (GSG). Banks find the entire sector too risky and are reluctant to grant loans to shipyards. GSG needs about $500 million a year in loans in order to finance its production but because of the banks' new cooler attitude, now has to use its own funds for the ships' const ruction and has in the past few weeks already spent $400 million. Janusz Szlanta, president of GSG, admits that the company cannot function in this way for long. "We used to get five to six months' credit to cover the construction costs," he said. "We are negotiating with the banks but it is difficult to get loans," he added, announcing that he would try to get government guarantees to cover the yard as did the Szczecin Shipyard a few days ago. Deputy Economy Minister Maciej Lesny does not dismiss the po ssibility of government help for GSG, while the president of the Industrial Development Agency (ARP) Arkadiusz Krezel, gave his assurance that GSG's credit problems would not lead it into bankruptcy. (Puls Biznesu, pp. 1, 4) A.D.