Hausner announces plans to convert part of zl.5.5 billion ZUS debt into bond s

Labor Minister Jerzy Hausner announced yesterday that the Treasury plans to convert into tradable bonds 80% of the debt owed by the Social Insurance Adm inistration (ZUS) to the country's 19 private pension funds (OFEs). The rema ining 20% of the debt is to be paid in cash by the end of 2003. Legislation enabling the bond issue should be passed by the end of 2002. "The whole oper ation will take place this year," Hausner explained. Analysts say the operat ion is designed to reduce the costs of servicing the ZUS debt of zl.5.5 bill ion, since Treasury bonds carry a lower interest rate than the overdue ZUS d ebt. (Prawo i Gospodarka, pp. 1, 2; Reuters) P.W.