Treasury Ministry plans to block bank privatizations

Treasury Minister Wieslaw Kaczmarek has announced officially that he plans to block the privatization of major domestic banks PKO Bank Polski, Bank Gospodarki Zywnosciowej (BGZ), Bank Gospodarstwa Krajowego (BGK) and Bank Pocztowy (BP). Kaczmarek maintained that, given the fact that 70% of the sector belongs to foreign investors, the state should retain control over these banks and treat them as partners in the process of improving the economic situation, especially in the field of providing small and medium sized companies with preferential loans. "We must realize that management of foreign banks undertake investment activities that do not serve the Polish economy," he said, mentioning the example of Bank Zachodni, which withdrew from financing of the mining sector. The minister also referred to the banks' need for capital, which in his opinion could be satisfied by means of share issues and transfers of funds from other state-owned enterprises. Kaczmarek's statement has been heavily criticized by sector representatives, who said that banks should not be forced to invest in unprofitable or high-risk ventures. (Puls Biznesu, pp. 1, 7) M.K.