PKP results improving as it steams towards privatization

After the first half of the year the financial condition of Polish State Railways (PKP) has improved compared with the respective period last year. Revenues have increased by zl. 528 million (11%) and at the same time maintenance costs rose only zl. 74 million (1.2%). PKP officials say, the company is now applying for a new loan of zl. 1.5 billion which may prove difficult as the lingering talks with banks suggest the deal may not take place due to creditors imposing more stringent conditions and demanding more collateral. PKP is now looking ahead to privatization that should start in 2002. However, prior to that the company will change into a state-owned joint-stock company and will later be divided into smaller units to be sold off. Along with railway telecommunications, energy and publishing, smaller transport companies (commuter lines in Warsaw and the Tri-city) are also scheduled to be spun off. The bill detailing the commercialization, restructuring and privatization of PKP is awaiting presidential approval. (Puls Biznesu, page 7, Prawo i Gospodarka, page 1,3)