Small business suffer from lack of access to capital and repressive taxation

Bankers admit that it is difficult for small and medium sized businesses to obtain loans and that no improvement will occur until there are signs of an economic recovery and a change in tax regulations. "The development of these businesses is the driving force of the economy. The ailing state finances effect the economic climate and impede the development of small entrepreneurs," said the president of the National Bank of Poland (NBP), Leszek Balcerowicz during a seminar. He sees fiscal regulations as placing insurmountable obstacles which hinder growth. "The good news for small enterprises is that banks will soon start to adopt margin levels found in the EU, which in turn will result in cheaper loans," added Balcerowicz. Among the three million registered companies, more than 90% of them are small enterprises. "In Bank Pekao SA out of zl. 20 billion worth of loans given to companies, only zl. 4 billion are designated for the smallest businesses," said Pekao deputy president Cezary Smorszczewski. He added that the bank's contribution to loans for the sector of small companies accounts for 30% of those issued. Other important players include PKO BP, co-operative banks and Bank Zachodni WBK. (Rzeczpospolita, Nov. 30 - Dec. 1, p. B5) A.C.