Gov't treatment of cooperative banks comes under criticism from legislators

Some Sejm deputies from a select committee studying a draft bill on cooperative banks have condemned the government proposal calling on cooperative banks to buy the majority of shares and convertible bonds being issued by Bank Gospodarki Zywnosciowej (BGZ). The government asserts that a failure to do so would distort the privatization concept for BGZ which calls on cooperatives to have controlling shares in the bank. The deputies also expressed reservation toward a ministerial project to freeze unused restructuring bonds for the cooperative banks. The euro 1 million as minimum equity that a bank should have has also come under criticism, as most cooperative banks can not meet this requirement without help from the government. (Prawo i Gospodarka, page 11) S.M.