In Brief: Bank of America helps Hortex, Kredyt Bank; Gas prices to go up

Bank of America (BoA), the main shareholder of frozen food and beverage company Hortex, has announced that it will help the company to regain its market share. The bank has increased the value of a short-term loan from zl. 30 million to zl. 55 million for Hortex to spend on marketing activities. The company will be allowed to use money from issuing commercial bonds worth over zl. 200 million. "In the short term we want to complete a financial restructuring of the company, so it has solid basis for healthy long-term development," said Hortex president Tomasz Kurpisz. BoA is not hiding its plans to sell the stake in Hortex as soon as it increase its value. (Rzeczpospolita, p. B4) ... According to unofficial information, due to the poor economic situation, publicly-listed Kredyt Bank is likely to reduce its staff by one-fifth. The bank's management are denying the rumors, claiming that the cuts will be considerably smaller. (Puls Biznesu, p. 10) ... Cap Gemini Ernst&Young Polska has been selected by Nafta Polska to be a consulting company in the process of the privatization and restructuring of the chemical sector. (Puls Biznesu, p.10) ... From January 1st, 2003 the cost of natural gas will increase, which is bad news for the heavy chemical sector, which is the largest user as an industry and is already heavily in debt. The price increase of up to $15 per cubic metre was announced yesterday by Polish Oil and Gas. (Puls Biznesu, p. 9) M.M.