News Parkiet

Petrochemicals

Oil companies should match gasoline tax cuts, Raczko says

Future gasoline tax cuts depend on the willingness of Polish refineries and oil suppliers to cut their own prices, Finance Minister Andrzej Raczko said yesterday at a meeting in Brussels. Polish Finance Ministry wants to discuss the issue with key market players, asking about 'their intentions concerning future pricing policy in the context of possible reduction of excise taxes', Raczko said. Discussions with fuel suppliers with start as early as Tuesday.

Politics

Belka's cabinet unlikely to win confidence vote on Friday

Polish prime minister Marek Belka is almost certain to lose confidence vote scheduled Friday evening after two minor parties begun negotiations to form their own coalition government with radical farmers' group Samoobrona. Belka's cabinet, sworn in on May 2, must be approved by a majority of valid votes of those present in parliament's 460-seat lower house on Friday. As of Tuesday, 226 deputies said they would vote for early elections instead. Federacyjny Klub Parlamentarny, which musters 17 votes and remains part of the ruling coalition suggested it would vote against Mr. Belka, reducing the odds of new government being formed anytime soon.

Information Technology

JTT talking with creditors to avoid bankruptcy

JTT computer-maker says it is still trying to negotiate its way out of bankruptcy by taking about possible debt reduction with Kredyt Bank, its single largest creditor. Tomasz Czechowicz, the founder of MCI Management venture capital fund which has a 36-percent stake in Wrocław-based company blames majority shareholders of JTT for recent reports that the firm has given up and may be liquidated. JTT owes Kredyt Bank, a subsidiary of Belgian KBC group approximately 26 million zloty.

Real estate

Bank Millennium to sell Wilanów property

Banco Comercial Portugues subsidiary Bank Millennium has offered to sell a 200.00 square-meter undeveloped property in Warsaw's prestigious Wilanów district. The site, adjacent to the planned Auchan hypermarket and Miasteczko Wilanów development project is divided into five smaller lots.

Sources in the real estate industry estimate total value of the property at approximately 40 million US dollars.

Preliminary bids for Wilanów property will be accepted until the end of May.

Power industry

Russians to make a bid for key Polish power plant

Russian United Energy Systems (RAO UES) energy group has confirmed previous news reports it will make a bid for a major stake in Zespól Elektrowni PAK, one of Poland's largest power plants. The Russians together with Germany's OstElectra and a private Polish company called Triton Holding say they want to buy out Elektrim power and telecoms group, which owns 38 percent of ZE PAK. 'Our partners are interested in Polish energy market', said Triton CEO Krzysztof Popenda. 'However, nothing's happening on the market and we don't think G-8 privatization sale will be restarted', Popenda said.

Chemicals

Agrofert interested in Polish chemical plants

PKN Orlen partner in privatization sale of Czech national oil company Unipetrol, Prague-based Agrofert may expand into Poland. Andrej Babis, founder and CEO of the Czech firm says it is working on the acquisition of OXY alcohol production plant from ZA Kędzierzyn, one of Poland's largest makers of fertilizers together with Polish refinery.

Currency market

Finance Ministry keeps selling eurobond proceeds

Polish Finance Ministry has sold as much as 600 million euros it raised in two international bond issues and an EBRD loan on the currency market since December of last year. Some market watchers blame the government for increasing volatility because of rumors and speculations surrounding planned transactions.