Prices rise
Food and non-alcoholic beverage prices inched up 0.1% in February, according to a report by the Central Statistical Office on Friday. The previous month had recorded a 0.2% fall. Food and non-alcoholic beverages account for 30% of the consumer price basket. Consumer inflation figures are due to be published on March 14.
Złoty weakens
The current political uncertainty may bring about the currency depreciation that finance minister Grzegorz Kołodko has been calling for. Danske Bank has revised down its forecast for the złoty to 4.20 against the euro over the coming three months, and to 4.30 over a six-month period. Coupled with the war in Iraq, the report says, "The risk of even more negative political news could make the złoty even weaker." Nevertheless, the bank concludes that the "fundamentals remain positive for the złoty," and hence it predicts "a fairly flat" exchange rate at around 4.30 against the euro in the six- to twelve-month period.
Netia fires executives
The new supervisory board of independent telecom operator Netia sacked two of the three members of the company's management board. Control of the supervisory board was assumed by former bondholders after a €773 million (zł. 3.33 billion) debt restructuring. Press reports had suggested that all three management board members had been sacked, but later it emerged that chief executive Wojciech Mądalski would be staying on. Netia is seeking to merge with other independent operators, all of whom are struggling to compete with dominant fixed-line operator TPSA, which still controls more than 90% of the market.
Steel bill approved
The Senate passed an amendment to the Iron and Steel Industry Restructuring Act, according to which the Industrial Development Agency is empowered to issue bonds and take out loans to fund the restructuring of Polskie Huty Stali. The funds will be used to pay off the steelworks' debts to its creditors, trade partners and ZUS. In return, the agency will take over PHS' shares and real estate. The act also contains guidelines on employment cuts, stipulating that those made redundant will receive cash compensation and support in retraining. The act now awaits the president's approval.
Złoty weakens
The current political uncertainty may bring about the currency depreciation that finance minister Grzegorz Kołodko has been calling for. Danske Bank has revised down its forecast for the złoty to 4.20 against the euro over the coming three months, and to 4.30 over a six-month period. Coupled with the war in Iraq, the report says, "The risk of even more negative political news could make the złoty even weaker." Nevertheless, the bank concludes that the "fundamentals remain positive for the złoty," and hence it predicts "a fairly flat" exchange rate at around 4.30 against the euro in the six- to twelve-month period.
Netia fires executives
The new supervisory board of independent telecom operator Netia sacked two of the three members of the company's management board. Control of the supervisory board was assumed by former bondholders after a €773 million (zł. 3.33 billion) debt restructuring. Press reports had suggested that all three management board members had been sacked, but later it emerged that chief executive Wojciech Mądalski would be staying on. Netia is seeking to merge with other independent operators, all of whom are struggling to compete with dominant fixed-line operator TPSA, which still controls more than 90% of the market.
Steel bill approved
The Senate passed an amendment to the Iron and Steel Industry Restructuring Act, according to which the Industrial Development Agency is empowered to issue bonds and take out loans to fund the restructuring of Polskie Huty Stali. The funds will be used to pay off the steelworks' debts to its creditors, trade partners and ZUS. In return, the agency will take over PHS' shares and real estate. The act also contains guidelines on employment cuts, stipulating that those made redundant will receive cash compensation and support in retraining. The act now awaits the president's approval.
