Week in Review: Privatization

Zbigniew Wróbel, president of No. 1 refinery Polski Koncern Naftowy Orlen (PKN Orlen), said that if his company does not merge with No. 2 refinery Rafineria Gdańska (RG), the market will suffer from a price war that foreign companies will be able to take advantage of. Analysts are speculating as to whether the government will change its oil-sector restructuring program and allow PKN Orlen to participate in RG's privatization. Treasury Minister Wiesław Kaczmarek said this option may be likely if an investor for RG cannot be found.

The Supreme Chamber of Control (NIK) announced that although restructuring of the largest state-owned bank Powszechna Kasa Oszczędności Bank Polski (PKO BP) was successful, the bank is still not ready for privatization. NIK said the government should analyze the bank's privatization strategy once again, and describe its role in the banking system. The report said it has not been specified how privatization would strengthen the bank's organizational and financial structure, or improve its financial liquidity and profitability. NIK said the Treasury Ministry should consult the bank itself about its underlying assumptions for the bank's privatization. For his part, Treasury Minister Wiesław Kaczmarek said he does not intend to list the bank's shares on the Warsaw Stock Exchange this year.