Prokom buys Czech IT firm
Prokom Software has started expanding into other Central European markets by purchasing the Czech IT company PVT. Prokom, the region's largest IT company, will pay €477 million for a 96.52% stake in PVT, unspecified sources close to the deal told the local press. Netherlands-based Middle Europe Investment and Czech-Slovak banking group J&T are Prokom's partners in the consortium, which has been named the recommended winner by the investment house advising on the deal. The Czech company, which has provided services for several public administration offices and financial firms, will complement Prokom's services portfolio, analysts said.
Fitch keeps country's ratings
Fitch Ratings has maintained its BBB+ rating for the country's foreign exchange liabilities and A+ rating for złoty loans. Fitch expects the country's GDP to grow 2.5% this year and 3.5% next year, but said that the country's political instability continues to hamper its economic recovery. Politically motivated inaction to reduce public debt from its current level of 46% of GDP also continues to have an adverse effect on the country's credibility, the agency said. Fitch pointed out that the median for countries with BBB+ ratings is 38% of GDP. Low investment and consumer demand dynamics are other reasons for pessimism. Conversely, falling interest rates, a weaker złoty and increased international competitiveness resulting in growing exports are encouraging signs, Fitch said.
Ministry proposes new tax rate
The finance ministry will propose a new 17% income tax rate for the country's poorest citizens, finance minister Grzegorz Kołodko said. "Should the cabinet approve this proposal, taxpayers would gain €281 million (zł. 1.2 billion)," he said. Kołodko also confirmed plans for retaining the current personal income tax rates at their present levels of 19%, 30% and 40%, and for keeping income less than zł. 2,800 tax-free. The ministry is also likely to support plans for reducing the corporate income tax rate from its present 28% to 19%.
