Nykredit, BGK cooperate on first Polish mortgage bank

"The Danes are open to our proposals. They are even ready to become a strategic investor," said Bank Czestochowa president Jolanta Szumlas. She added that the presidents of the G-12 banks received a letter of intent from Nykredit in which it declares readiness to provide financial help. In 1998 Nykredit had $244 million net profit. Bank Gospodarstwa Krajowego (BGK) has also expressed interest in entering the G-12 and participating in the creation of a mortgage bank. "We cannot stand aside while Poland creates a mortgage market. The participation in a project like G-12 is the only way to enter the market," said BGK vice-president Irena Herbst. She added that Nykredit's interest is another reason for BGK to enter the G-12. (Prawo i Gospodarka, page 7)