Treasury to transfer stakes in state-controlled companies to save mining

The Ministry of the State Treasury has drafted a new plan to save Polish mining, including troubled Kompania Węglowa coke mine, in line with which, small stakes in three state-controlled companies will be transferred to a special fund, the Polish Press Agency reported. The Treasury Ministry will ask the government to approve the transfer of a 2 percent stake in PGNiG, a 1 percent stake in utility PGE and a 1 percent stake in insurer PZU to a state-controlled fund TF Silesia, Deputy Treasury Minister Wojciech Kowalczyk told the agency.The stakes total PLN 1.4 billion and the ministry does not expect the fund to sell them on the market, but instead use them as collateral to obtain loans, Kowalczyk explained. Such cash injection would certainly be helpful to Kompania Weglowa, which recorded a PLN 1.13 billion loss last year and has continued to lose money in the first half of this year. Aother state-controlled fund FIPP will provide the sector with PLN 300 million, the deputy minister also said. The energy companies were not interested in investing in any of the funds directly.