Government set to re-take control of Szczecin Shipyard

The State Treasury may have to re-nationalize Stocznia Szczecin Porta Holding SA, the troubled Szczecin Shipyard, which was privatized in 1993. "The company's owners are backing out and the government will re-take control of the firm," Treasury Minister Wieslaw Kaczmarek announced after a meeting with the yard's management and creditors. As a result the Treasury, which currently owns nearly 10% of the shipyard, may become the majority shareholder. PKO BP declared a readiness to grant a bank credit to help restart shipyard production. "By May 22 there has to be an agreement between the Treasury and the three private owners of the shipyard on taking over their shares," said Deputy Treasury Minister Ireneusz Sitarski. The Treasury plans to obtain the yard's shares for a symbolic zloty and to guarantee between $150 million to $200 million in loans that the shipyard will take from banks this year. This step of renationalizing the yard is a dangerous precedent for the government, as it has already been warned by international institutions against reversing the policy of selling off state-owned companies. (Prawo i Gospodarka, p. 1, 2; Reuters) P.W.