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Polish banks join EBRD's Polish restructuring programme
Two Polish banks, Powszechny Bank Kredytowy S.A. w Warszawie (PBK Warsaw) and Bank Depozytowo-Kredytowy w Lublinie SA (BDK Lublin), have signed up for the first stage of the Stabilisation, Restructuring and Privatisation programme (SRP), developed and sponsored by the European Bank for Reconstruction and Development (EBRD). The SRP will provide US$ 30 million for the financial and operational restructuring of medium-sized Polish companies and will give the two Polish banks an effective way to restructure part of their problem loan and equity portfolio. Of the US$ 30 million, the EBRD is providing US$ 15 million and the Polish banks US$15 million.
"The EBRD has worked closely with the Polish Government, the Polish banks and the European Union's Phare programme to move this programme out of the starting blocks," said Alain Pilloux, Director of the EBRD's Poland Team. "This is an important moment as we can now push forward with implementation and provide vital assistance to those companies starved of financial support. The programme complements and supports other private sector and Polish government initiatives."
In addition to PBK Warsaw and BDK Lublin, other Polish banks are expected to participate alongside the EBRD. The total programme is expected to reach US$ 80 million. An additional US$ 12 million is being provided in the form of technical assistance by the PHARE programme.
Aside from the equity investments, which are expected to range from US$ 1 million to US$ 4 million for each selected enterprise, the SRP has also been designed to provide hands-on turnaround expertise and technical support. The programme is driven by the need to find a permanent viable solution for the participating enterprises and will seek to sell the investment once the enterprises have been successfully stabilised.
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