Polish State Railways not on track for $100-million loan

Polish State Railways (PKP) may lose out on a $100-million loan from the European Bank of Reconstruction and Development (EBRD). As a condition for obtaining a loan, the bank requires that the proposed new law on restructuring PKP be passed before the loan can be granted. PKP badly needs the money for restructuring its workforce. Predictions are that by the year 2002, PKP will employ 145,000. Currently, it has 185,500 employees The total cost of providing severance packages for laid-off employees is estimated at zl.1 billion, with packages ranging from zl. 20,000 to zl. 30.000. About 30,000 employees are expected to take voluntary redundancy. (Rzeczpospolita, June 24-25, B2) A.D.