Government bond issue to make up for shortfall in privatization revenues?

The ambitious target to raise zl. 9.1 billion from privatization in 2003 is unlikely to be met, as the Finance Ministry warned on Tuesday that two key sell-offs might be delayed. Deputy Finance Minister Andrzej Sopocko told reporters that planned flotation of stakes in PZU and PKO BP may not go through this year. Regarding the planned partial privatization of PKO BP, Sopocko said that it would be, "Difficult, but attainable." According to analysts, delays would be a negative signal for the bonds market. "The lower the revenues from privatization, the bigger the debt issuance will be. But that is largely what the market expected," said Maciej Slomka, head of the fixed income department at Bank Pekao. (Parkiet, p. 1; Reuters) J.K.