LOT to receive zl. 400 mln government rescue package

The government yesterday pledged $1 bln worth of insurance guarantees to PLL LOT, the Polish national airline, while proposing a new bill to extend the guarantees to the end of the second quarter of 2002. The government also decided to inject the ailing airline with capital by offering a block of shares in Bank Zachodni WBK and Pekao, in total worth around zl. 400 million. The new government wants to contribute the shares to LOT and in exchange to acquire LOT's new share issue. The government would then maintain a 60% stake instead of the current 52% stake. In addition, according to deputy prime minister Marek Pol, a new draft regulation would oblige government employees to use LOT when travelling on state budget expenses. (Gazeta Wyborcza, p. 18, Prawo i Gospodarka p. 1, Rzeczpospolita p. B2) P.W.