PKP agrees zl.700 million loan deal for restructuring

Polish State Railways (PKP) has agreed a zl.700 million loan deal with a consortium of banks. PKP plans to use the funds, which it is likely to receive later this month, to push ahead with its on-going restructuring program. The 12-month government-guaranteed loan will be provided by Bank Handlowy and units of Dresdner Kleinwort Wesserstein and Westdeutsche Landesbank Girozentrale. "The loan will help sort out our financial situation, including the servicing of our liabilities," said PKP spokesman Roman Hajdrowski. PKP, which saw its debt rise to zl.7.1 billion last year from zl.6.3 billion in 1999, is scaling down its operations and cutting jobs ahead of a partial privatization planned for 2002 and 2003. The company also has plans to issue zl.2 billion worth of bonds to finance its overhaul program. (Reuters; Parkiet, p.2) M.K.