World Bank contemplates another loan to help restructure ailing coal industry

Despite recent profits from the sale of coal, the Polish coal industry continues to amass public debt, reads the recent report compiled by the World Bank's latest mission investigating the possibility of making the next installment of credits for the sector's restructuring. The experts view the recent three months where the price of coal has outstripped the cost of production as a significant step ahead, however they point out in their letter to Economy Minister Janusz Steinhoff the need to improve the financial liquidity of the coal companies. The situation is exacerbated due to current prices being too low to cover the wages, which pushes the mines toward obtaining expensive long-term credits. The debt is drastically growing because of the unpaid interests of around 43% annually. The situation is placing a heavy burden on the Treasury and is stalling the restructuring, concludes the report. The Ministry is currently working on the concept of a restructuring company, which would take over the debt-ridden companies and where the subsidies from the budget will be directed. (Rzeczpospolita, page B3) P.S.