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Helping Poland re-ignite the reform process
New EBRD strategy to assist with attracting investment and job creation
Following fundamental structural reforms in the 1990s – culminating in this
month’s historic accession to the European Union – Poland has made great
progress in the transition process. Market and trade liberalisation is
extensive, and more than 70 per cent of GDP is generated by the private sector.
Yet little further progress has been achieved over the past three years to
improve the investment climate. Important differences remain between Poland
and advanced market economies. To meet the competitive pressures of EU
membership, and especially to tackle an unemployment rate approaching 20 per
cent, Poland needs to increase its capacity to attract investment and create
jobs, the EBRD says in its new strategy for Poland, now available on
www.ebrd.com.
Poland must accelerate reforms which have stalled and temper the propensity to
run large fiscal deficits, the strategy warns. Only by improving its business
environment to attract larger inflows of foreign direct investment, upgrading
its infrastructure, and ensuring a predictable and sound tax environment can
the country achieve its real growth potential. The privatisation and
restructuring of remaining large, state-owned companies must be finalised.
Agriculture will have to undergo significant adjustment.
The EBRD stands ready to help Poland meet these challenges. The latest
strategy envisions the Bank focusing its activities in Poland on the following
priorities:
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In the enterprise sector the Bank will maintain a strong focus on attracting
foreign direct investment – particularly from European and non-European
medium-sized companies – and enterprise restructuring, modernisation,
consolidation and regional expansion. The Bank is prepared to participate in
privatisation, particularly in more challenging or crucial sectors such as
steel, power, gas and chemicals. It will be important to increase the capital
base of expanding or export-oriented companies.
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In the financial sector the Bank will seek to further increase the
availability of finance to small and medium-sized enterprises with the
expansion of existing programmes and the provision of new instruments to
broaden the array of financial services. The Bank will be prepared to assist
with the privatisation of the remaining state-owned banks BGZ and PKO BP and
the life-insurer PZU as well as the Warsaw Stock Exchange.
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In infrastructure and environment the Bank will continue to promote schemes
that minimise the reliance on sovereign guarantees and increase the supply of
long-term capital. The Bank will work with national and local authorities to
make effective use of EU funds. It will further support railway restructuring
and modernisation.
The EBRD has signed about 130 projects in Poland with commitments of €2.8
billion and mobilising a further €7 billion from its partners.
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