Zl.700 million credit to help PKP repay loans and buy rolling stock

Polish State Railways (PKP) is shortly to sign a zl.700 million credit agreement with a consortium of foreign banks. According to PKP president, Krzysztof Celiski, the company has already obtained acceptance from the cabinet, necessary since the credit will be guaranteed by the State Treasury. Among the banks making up the credit consortium are Citibank (Polska), Dresdner Bank Luxembourg, Westdeutsche Landesbank Girozentrale and Westdeutsche Landesbank Polska. The money from the credit is to be used for paying back PKP's existing financial obligations to lenders who provided short term credit of zl.300 million in December. PKP must also pay back a further zl.300 million to Social Insurance Company ZUS. Repaymernt of this debt was a preliminary condition set by ZUS to opening negotiations on paying back in instalments the remainder of a zl.1 billion debt. PKP plans to spend the remaining part of the new credit on buying rolling stock. (Puls Biznesu, p.4) A.D.