News Parkiet

Equity markets

Brokers' association may be shut down due

to cash shortage

ZMID brokers' association may be forced to close down its operations due to liquidity problems, its executive board warned members last week.

ZMID gets most of its income from training seminars for future equity brokers. The association estimates that just 10 percent of its members are actually paying their fees. One ZMID official says they now owe 700.000 zloty in outstanding fees.

The association, which has approximately 1300 members was hit by allegations of fraud and financial irregularities over a period of several months in 2002 and 2003. Internal audit committee at ZMID main office in Warsaw revealed sloppy accounting and unauthorized payments to some of its staff.

Public finances

Union activists propose new tax on financial services

OPZZ trade union wants the government to impose a special tax on banks and other financial institutions in response to recent austerity program proposed by SLD Economy Minister Jerzy Hausner. Left-leaning OPZZ say the new five-percent tax on bank profits would bring in an extra two billion zloty to pay for social programs. The plan is unlikely to win government backing or serious consideration by the Polish parliament.

Real estate

Apator wins compensation from TK Development

Test equipment maker Apator S.A. said it has called off planned sale of key property to TK Development after its Danish partner failed to secure tenants for the proposed shopping and entertainment center. Toruń-based company will get to keep 5.6 million zloty advance payment as compensation for terminating contract with property developer. Publicly traded firm has agreed previously to sell undeveloped property in downtown Toruń for 5 million US dollars.

Apator makes billing and testing equipment for mining and utilities. The group, best known for sponsoring one of Poland's top motorcycle racing teams has annual sales of approximately 110 million zloty.

Information technology

Wola Info may list its stock in Warsaw

Wola Info hardware supplier may list its stock on the Warsaw bourse early next year, raising funds for expansion into higher-margin IT services.

'We are aware that we'll need more money', says Info Wola's CEO Piotr Majcherkiewicz. 'Right now we are focusing on rebuilding our company, but in the second half of this year we'll have to start thinking about new cash injection', Majcherkiewicz says.

Until now, Info Wola specialized in selling CRM solutions and hardware to large corporate customers, including Polish Telecoms, PKN Orlen refinery and state-owned lender PKO BP.

Mutual funds

Credit unions to create mutual fund

SKOK credit unions are working on a plan to set up their own money market mutual fund later this year, sources told PARKIET on Friday. The new fund will be managed by PKO/CS TFI mutual fund group.

SKOK unions have several hundred thousand members and manage assets worth about three billion zloty.