Industrial development agency spends PLN 400 m for subsidies

APA - Austria Presse Agentur
opublikowano: 31-05-2005, 12:39

Warsaw (Puls Biznesu) – ARP, Polish industrial development agency has already spent nearly PLN 400 m (EUR 97.1 m) for subsidies for companies. Over 40 companies wanted to restructure within the law of restructuring of companies with special meaning for the job market. ARP approved of only 15 applications. ‘The funds for subsidies for those companies amount to PLN 450 m.

Warsaw (Puls Biznesu) – ARP, Polish industrial development agency has already spent nearly PLN 400 m (EUR 97.1 m) for subsidies for companies. Over 40 companies wanted to restructure within the law of restructuring of companies with special meaning for the job market. ARP approved of only 15 applications. ‘The funds for subsidies for those companies amount to PLN 450 m. We have already spent PLN 397 m’, Arkadiusz Krezel, ARP CEO said.

The funds are spent for loans and guarantees for companies or to increase their capital. The companies may reach settlements with their creditors, get rid of unprofitable assets and have a chance to have part of their debts cut. Three companies managed to finish restructuring programme earlier than planned.

Nearly half of the funds were given to Stocznia Gdynia shipyard and Huta Stalowa Wola (HSW) steel plant. The shipyard is still not able to finance its production, while HSW founded HSW Trading in 2004, a producer of construction machines which still has losses. ‘Subsidising companies is nonsense destroying economy and jobs’, Andrzej Sadowski from Adam Smith’s Centre think-tank commented.

Experts believe that neither the law nor the subsidies helped companies. They realise restructuring programmes because economy is growing, prices and orders increase, so their creditors are more eager to help them. Piotr Mazurek, the CEO of Mesko ammunition producer, said that it was offset that helped him end restructuring.

(PLN 1 = EUR 0.243)

Poland/Enterprises/Subsidies

 

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Podpis: APA - Austria Presse Agentur

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