Kredyt Bank threatens to sue the State Treasury over loan guarantee

Following several months of unsuccessful negotiations between Kredyt Bank (KB) and the Finance Ministry concerning a loan guarantee of $12 million wh ich was not repaid by the State Serum Fractionation Laboratory, the bank an nounced plans to start legal proceedings against the state and demand the m oney in question. The plans to construct the Laboratory, which were initiat ed in mid 1990s, envisaged that the project would be financed through a $32 .7 million loan granted by a consortium organized by KB. State Treasury gua rantees, issued by the government of Włodzimierz Cimoszewicz just before the end of its office, were to cover 60% of that sum. According to the Office f or State Control (UKS), a large part of the raised funds were spent not in accordance with the law, and this was partly the reason why the Laboratory went bankrupt. The Finance Ministry blames KB for not reacting to letters of the Ministry concerning ill functioning of the medical institute. The bank on the other hand, claims that all investments were undertaken with the acc eptance of the Finance Ministry. (Parkiet, p. 6) A.K.