How far can BGŻ dilute its reserves to boost profits?

This could be possible thanks to cost reductions as well as slashing the bank's reserves. In the first half of 2003 BGŻ posted a net profit of zł. 33.3 million. At yesterday's extraordinary shareholders' meeting, co-operative banks which hold a 30% stake in the bank, again blocked the management's plans to increase BGŻ's capital by 19%. "At the next shareholder meeting we will reiterate our proposal of the 19% capital increase," said BGŻ's president Jacek Bartkiewicz. The Treasury holds a 70% stake in BGŻ. Co-operative banks fear that their share in BGŻ might soon be diluted. (Puls Biznesu, p. 3) A.Z.