Poznan plans to cover budget deficit through zl.105 million bond issue

The municipal authorities in Poznan have announced plans to issue bonds worth zl.105 million. According to Tomasz Kayser, deputy mayor of Poznan, the capital raised from the bond issue will be spent on covering the city's 2001 budget deficit, which is estimated to be in excess of zl.116 million. The city authorities are confident that a bond issue is a better solution for Poznan than obtaining credit from a bank. According to mayor of Poznan Ryszard Grobelny, the idea has the added benefit of boosting the city's image by making it a more attractive proposition on the financial markets. Before the bond issue can take place, Poznan will first launch a tender to find a bank that will organize the issue. (Puls Biznesu, p. 8) A.K.