News Parkiet

Monetary policy

Traders expect four more interest

rate cuts

Recent trading in Forward Rate Agreement contracts suggests that Poland?s Monetary Policy Council may cut benchmark interest rates by as much as 100 basis points over the next twelve months. Some economists say these expectations may be too optimistic and expect smaller cuts sometime in late spring.

Civil engineering

PBG takes over Orlen contracts

from another contractor

PBG SA, a publicly traded building company specializing in pipeline construction and related projects, said it will take over two contracts with PKN Orlen refinery totaling 45 million zloty from cash-strapped Maxer civil

engineering group. Polish businessman Zbigniew Jakubas, who owns Maxer through various subsidiaries, says his company won?t be sold to PBG despite press reports to that effect and bankruptcy filings against Poznań-based firm. Formerly known as Energopol 7, Maxer is one of the biggest civil engineering firms in Poland.

Telecommunications

Poland may open

up local phone market

URTiP telecommunications and post office regulator is working on a plan to give away licenses to what it calls ?public fixed-line phone services? in various parts of the country. Under the proposal, smaller phone

companies, as well as incumbent Telekomunikacja Polska, part of France Telecom group, may receive subsidies to compensate for unprofitable services in sparsely populated rural areas. URTiP has until September to announce a contest for new fixed-line licenses.

Subsidies for rural operators will come from a special fund funded with contributions by major operators, each of whom will be asked to pay up to 1 percent of its revenue.

Two major CLECs, publicly traded Netia and KGHM susidiary Telefonia Dialog both say they may bid for URTiP licenses once it publishes detailed terms of new service.

Insurance

ING announces Polish expansion plans

ING Nationale Nederlanden, Poland?s no. 4 life insurer, plans to continue organic growth but won?t exclude acquisitions or eastward expansion into Ukraine and the Baltic states if that would add to its future profits, chief executive Marc van den Ploeg said yesterday. ING unit collected about 920 million zloty in life premiums last year, just 1 percent more than in 2003.

Although TUnŻ ING Nationale-Nederlanden Polska won?t release its official earnings figures, people who follow the company estimate its earnings at 110 million zloty ($35.5 million).

Retailing

Redan picks new CEO

Shareholders of Redan SA clothing retailer chose deputy chief executive Piotr Kulawiński to serve as company?s new CEO, replacing company founder Radosław Wiśniewski, who resigned over his role in a corruption scandal that broke out in December. Mr. Wiśniewski quit after an investigation that showed he paid bribes to local customs officers to secure favorable treatment. He says he was blackmailed by senior customs agents and hasn?t been formally charged.

Also yesterday, Redan picked Agnieszka Karpińska from PZU TFI mutual fund group to serve as another independent, non-executive board member alongside Rafał Mania, CEO of BPH TFI fund.

Power industry

PKE wins tax case against

Urząd Skarbowy

Regional court in Gliwice has ruled in favor of Południowy Koncern Energetyczny, a huge, state-owned power

plant and coal mine holding from southern Poland, in a three-year dispute with local tax authorities. Urząd Skarbowy tried to force PKE to pay as much as 63 million zloty plus a 40 million zloty penalty alleging that the company avoided some corporate income taxes.