Treasury seen foot-dragging on PKO BP privatization

Despite earlier declarations by the Treasury Ministry that it would find an adviser for the privatization of Poland's leading retail bank PKO BP as soon as possible, it now appears to be delaying the move. Two weeks ago the Treasury canceled its first tender for an adviser and said it would announce a new one immediately. However, despite prodding from PKO BP president Henryka Pieronkiewicz, who is hoping for the Treasury to act fast, the latter has made no more efforts to move the process forward. According to unofficial sources, the reason for this is a shortage of funds to boost PKO's capital ahead of the deal. Last year the bank had a capital adequacy ratio under 8%, while the minimum required for a bank undergoing privatization is 12%. (Puls Biznesu, p.5) T.J.