Weak zloty likely to harm companies with dollar debts but assist exports

According to Deutsche Bank, the strengthening of the dollar relative to the zloty is likely to have an adverse effect on companies that have foreign debts denominated in dollars. The debt of Telekomunikacja Polska S.A. (TPSA) is estimated to have soared by zl. 600 million - zl. 700 million during the recent instability of the Polish currency. Other firms affected by the weak zloty include the conglomerate Elektrim S.A. and the telecommunications company Netia. The weak zloty is however, a reason for rejoicing by companies like copper conglomerate KGHM Polska Miedz S.A. whose biggest share of trade, the export of metals, is conducted with the dollar. Another giant, oil producer and distributor Polski Koncern Naftowy (PKN) also has reasons to celebrate because the prices of its goods are set relative to the dollar, while import of petroleum is transacted in other currencies. Besides, the company has less than 20% of its debts denominated in dollars. (Prawo i Gospodarka, page 1, 11) S.M.