Is EBRD euro 30 million loan to Warsaw property developer a bridging loan?

Property developer Dom Development (DM) will receive a euro 30 million unsecured loan from European Bank for Reconstruction and Development (EBRD), the bank's executive director and a former prime minister Jan Krzysztof Bielecki said on Thursday. According to Jarosław Szanajca, the chairman of DM, the EBRD funds will not be used to finance any particular project but rather will economically support the company. Szanajca stressed that the company will continue constructing flats and houses in Warsaw, its traditional activity area. By December 2002 the company, present on the market since 1996, built 3,200 flats, and this year is planning to complete 1,200 flats, as compared to 1,014 in 2002. Dom Development's 2002 net profit was zł. 16.6 million with revenues of zł. 210 million. This year DM believes its profit will be the same as in 2002 on slightly lower revenues of zł. 200 million. (Rzeczpospolita, p. B3; Puls Biznesu, p. 6; www.onet.pl) J.K.