Warsaw (Puls Biznesu) The National Road Fund KFD, which is an account in BGK, the state-owned bank, is going to raise EUR 200m for roads by issuing bonds. This action was necessary after the government had decided to spend part of the funds for railways. If the plan succeeds, the General Authorities of National Roads and Highways GDDKiA, which manages 18,000 km of national roads, may have nearly PLN 9 billion (EUR 2.3 billion) for investments.
The only provision is that the government approves of state guarantees for the issue.
A bond issue by BGK for KFD is considered. The bank plans to issue 10-year-long bonds worth EUR 200m which would be secured with the state¹s guarantee. BGK has applied to the Minister of Finance to give the guarantee.
The application waits for approval, which is subject to the recommendation of the Minister of Transport and Construction, Pawel Galecki from the Ministry of Transport explained.
As a matter of fact it is the government who has the final vote. The decision of the cabinet will be clear in a few weeks¹ time.
(PLN 1 = EUR 0.258)