Treasury pushes through plan forcing cooperative banks to aid BGZ

At the shareholder's meeting of Bank Gospodarki Zywnosciowej (BGZ), the State Treasury pushed through a privatization plan under which the bank will be privatized and financially aided by local cooperative banks. BGZ used to have supervisory authority over nine regional banks, which in turn oversee the cooperative banks, but earlier this week six regional banks decided to form an alliance without the participation of BGZ. The six voted against the Treasury's privatization plan, but since the state commands a 66% majority in BGZ, they lost. This means that the remaining three regional banks will have to boost BGZ's capital by acquiring a new zl.50 million share issue, which according to the plan's opponents will be too heavy a burden for them. The privatization proposal now needs to be approved by the Banking Supervisory Commission. (Gazeta Wyborcza, p.16) T.J.