Slippery euro 45 million problem for bank BPH PBK

BPH PBK might be forced to create high reserves on its euro 45 million loan to Glimar Refinery, as the oil company has financial problems and suspended the construction of its so-called Hydrokompleks worth euro 110 million. The extra costs connected with stopping the investment amount to euro 3 million a month. According to information, the bank was probably also financing the current operations of the company, but it is unknown up to what amount. "BPH PBK in cooperation with Nafta Polska and the State Treasury is analyzing how to solve the refiner's problems," admitted the bank's spokesman Jacek Balcer. According to Parkiet, institutions which were granting loans to Glimar, have their money secured against the company's assets. "Probably BPH PBK believes that this state owned company could still be saved," said DI BRE analyst Andrzej Powierża. (Parkiet, p. 3) M.M.