No. 34 (632),  August 23, 2004
Archive
  

Investments Financed from the Cohesion Fund
 
The Ministry of Infrastructure has sent to the European Commission for acceptance six investment projects to be co-financed from the Cohesion Fund. Thanks to them, Poland will be able to use all the Cohesion Fund's money earmarked for infrastructure in the years 2004-2006. The total value of the projected investments notified by the Ministry of Infrastructure to the European Commission on August 11 and 13, exceeds 2.2 billion euros and the co-financing from the Cohesion Fund will total 1.8 billion euros or some 82 percent of the investment's value. Together with those sent earlier, Poland directed to the European Union projects jointly valued at 4.4 billion euros. The biggest of them is the construction of a 48-km long section of the A1 Motorway from the Sośnica junction (intersection with A4 Motorway) to Goryczki next to the border with the Czech Republic. Its cost is estimated at more than 700 million euros. The motorway is to be completed by 2008. The recently notified investments include two major railway projects: the first stage of the modernisation of the E-65 route from Gdynia to Warsaw, which is to cost 471.4 million euros (to be completed by 2010) and the first stage of the modernisation of the E-59 route from Wrocław to Poznań, estimated at 228.5 million euros.
 
 
Finance Minister about 2005 Budget
 
At a meeting with analysts on August 17, Finance Minister Mirosław Gronicki said that budgetary deficit in 2005 will amount to at least 35 billion zlotys towards the 45.3 billion zlotys envisaged for 2004. Gronicki said that the earlier planned expenditure amount totalling 207.2 billion zlotys would remain unaltered. Cutting the budgetary deficit should be an effect of higher incomes.
 
 
Tax Revenues from Enterprises
 
The latest data supplied by the Ministry of Finance regarding the execution of the budget indicate that tax receipts keep growing. As of the beginning of 2004, they amounted to 6.9 billion zlotys. In the corresponding period of 2003, the figure stood at 6.4 billion zlotys.
 
 
Abrupt Improvement of Bank Effects
 
In the first six months of 2004, net profit of the Polish banking sector amounted to 3.72 billion zlotys and was twice as high as in the corresponding period of 2003. If the coming quarters are equally profitable, the Polish banking sector can, this year, achieve an all-time record-breaking result of 7.5-8 billion zlotys. So far, 1997 was the best year in the history of the Polish banking sector with its 4.5 billion zlotys net profit. Nearly all banks recorded gains in 2004. The largest ones can boast the highest profit: PKO BP (844 million zlotys after the first six months of 2004) and Pekao SA (665 million zlotys). After several years of poorer results, stemming from the restructuring after merger with the PBK, the third largest Bank BPH recorded gain of 429 million zlotys. The three institutions account for more than fifty percent of the sector's entire profit. The improvement of the position of banks is an effect of better economic situation. The National Bank of Poland reports that in 2004, the banking sector's assets grew 5.5 percent and the growth computed since the end of June 2004, reached 7.5 percent. This spectacular gain resulted from the fact that in 2004 banks created much smaller reserves for credits than in the previous two years and from lowering the Corporate Income Tax from 27 to 19 percent.
 
 
Export of Polish Agricultural Produce
 
Polish dairies gained the most on accession to the European Union. Every third euro from the Community funds goes to the dairy sector. Already as many as 210 dairies (53 percent) boast certificates authorising export to the EU market, and 144 take advantage of the transitional periods until 2006. In 2004, the value of exports of Polish agricultural produce should reach 400 million dollars, one-fourth of which to the EU market. In 2003, Poland exported dairy products worth 325 million dollars, 18 percent of which to the EU-15 countries. Polish cheese exports are growing fast - their share rose to 37 percent. Exports are the main source of income for Polish dairies. The large demand for Polish milk in the European Union has made the dairy farms increasingly profitable. Poland is fifth in EU in terms of milk production and sixth on the cheese market.
 
 
Mining-Related Companies
 
Business trend in the Polish mining industry offers developmental possibilities for companies co-operating with it. In the machinery industry for this economic branch, there appeared a chance for development because coal-mining companies started to invest in new equipment. There are 1,500 mining machinery factories in Poland, employing a staff of 80,000. In recent years, those companies created bridgeheads on foreign markets, mainly in Russia and Ukraine. The branch is now pondering consolidation with several capital groups that have emerged. The Damel Company from Dąbrowa Górnicza turning out electric motors sends more than 30 percent of its production to Russia and Ukraine. Of late, it also started to supply motors for the Austrian Voest Alpine combine harvesters. Currently, the company is working on the strategy for entering the Chinese market. Damel, has been making profit for the past two years, employing a staff of 570, and is planning to enter the German market. The Glinik Mining Machinery Factory from Gorlice has concluded four major contracts for the supply of mechanised shaft linings for Siberian coal mines worth 20 million dollars. The increasingly better functioning company announces further, bigger contracts. Ryfama Company from Rybnik, maker of conveyors and crushers, exports to Russia a dozen or so of its production volume.
 
 
Container Vessels from Szczecin Shipyard
 
The Szczecin Shipyard Nowa (SSN) has signed a contract with the Hamburg-based German Doehle Schiffarts Company for the construction of two container vessels for 80 million dollars. The vessels capable of transporting up to 3,100 containers each will be made in 2007. Thanks to the contract, the joint number of ships ordered in the SNN guarantees jobs until spring 2008. In September, the SNN wants to sign a contract for the construction of more container vessels.