PKP PR applies for zł.2 billion bailout to cover debts

"We need this amount to pay off old debts and cover current liabilities. Such aid can only be received once, and thus we applied for the full amount," explained Leszek Ruta, president of PKP PR. The company closed last year with a result much worse than anticipated. "In 2004 we were zł.760 million in the red. We hoped that the loss for 2005 would not exceed zł.500 million. It was zł.100 million higher. Our costs decreased, but so did the revenues, since the local governments ordering trains from us paid less than zł.400 million, instead of the promised zł.450 million," Ruta said. PKP PR was not established to earn money (the commercial role went to PKP InterCity), but rather to carry out services of a public character, to be financed by the state. The situation should improve this year, as the government passed three bills, which should ensure financing for railway companies. (Puls Biznesu, pp. 1,5) M.M.