Some analysts are warning that the country might be hit by a wave of bankruptcies in April, which this time will not be due to recession, but rather due to the Finance Minister's debt restructuring law.

According to the new regulation, companies participating in the program first have to pay off their liabilities to pension funds first. However, this sum amounts to over 50% of all companies' debts and simply some firms might not be able to find the often large sums involved, and what’s more they have to find the money within the next few days and weeks. But how will virtually bankrupt companies find the cash? Bank loans seem out of the question. If enterprises are unable to pay the money they will go under.

The Finance Ministry hoped to raise zl. 1.3 billion from this plan, but this sum was gradually downsized. Another emergency plan looks like it is going to turn out to be a real disaster and the Ministry is now looking for alternative ways of raising this sum to help balance the budget. One idea being mooted is to tap into NBP reserves.

(WBJ 31.iii.03)