High debt burden responsible for liquidity problems of Polish companies

The efficiency of companies in the first quarter was higher than a year ago, says the Central Statistical Office (GUS). Their revenues were increasing quicker than the procuring costs. They were respectively zl. 4.4 billion and zl. 2.9 billion. A high level of debt burden however caused the financial liquidity factor to drop from 17.3% in the first quarter last year to 16.3% at present. A level of 20% is considered safe and that is why many firms have serious problems with solvency. This factor is especially low for the private sector standing at 13.8%. Bad financial results was the reason for the reduction in employment by 0.4% since last year but the situation improved especially in the building sector, as there were 3,700 more flats built than in year 1999. (Rzeczpospolita, page B3, Prawo i Gospodarka, page 1,2) M.M.