Time running out for steel mills to use state aid

As agreed with the EU, all steel mills will not be allowed to use public finances for their restructuring processes after the end of 2003. This means they have less than 12 months to use zl. 3.38 billion of remaining state aid. It has turned out, however, that the sum available to the sector does not exceed zl. 2.65 billion, as zl. 700 million has already been used. "If Polish Steel Mills (PHS) manages to find an investor, the finances for the concern will be further limited," said Andrzej Szarawarski, a Deputy Economy Minister. "One of the tasks of a prospective investor is to buy-out the concern's financial liabilities amounting to zl. 1.6 billion, which will imply lowering the amount of public financial backing by this sum," said a PHS board member. (Puls Biznesu, p. 3) K.Z.