SLD obstructing work on law meant to push PKO BP privatization ahead

The Democratic Left Alliance (SLD) is obstructing work on the law pertaining to the old housing loan portfolio, which has to be passed in order for the privatization of bank PKO BP to commence. PKO BP, one of the two largest retail banks in Poland, has a portfolio of bad housing loans granted in the years 1965-1992. The loans are being repaid on terms set not by the bank, but by the government and the Parliament. PKO BP has to create huge reserves when tenants are not repaying their loans., and these reserves have a significant negative effect on the bank's valuation, which in turn would mean lower privatization revenues. This is why the government proposes to guarantee repayment of 90% of the portfolio. However, SLD claims that 95% of the borrowers are repaying their loans according to schedule and there is a high risk that they will stop doing so, if they know the state can do it instead. (Gazeta Wyborcza, p.41)