Leading banks set to run up losses from involvement in the chemical sector

According to Parkiet, BPH PBK, ING BSK and Pekao S.A., are the three banks likely to suffer the largest losses in the planned debt restructuring of the industrial chemical sector planned by Nafta Polska, in charge of privatizing the sector. Specialists claim that after last year's disastrous investment in the Szczecin Shipyard, most of the banks have already built up reserves to cover investments in fertilizer and other industrial chemicals producers. However, none of the banks would confirm the rumors. At the moment the sectors debt to commercial banks is almost zl. 1 billion and all the above mentioned banks that put their money to prop up the ailing sector now have rather gloomy prospects, as the 2002 combined loss of nitrates producers in Tarnow, Pulawy and Kedzierzyn together with chemicals producers in Police, Sarzyna and Zachem was zl. 385 million. (Parkiet, March 15-17, p. 3) J.K.