Financial restructuring in Poland: Swapping bad loans for good equity

The Polish economy is overburdened with inter-enterprise debt, which is serviced by the banks and whose bad loans constitute from 20% to 35% of the total loan portfolio. Poland's financial restructuring program will move up a gear with the passing of the new law on Financial Restructuring of En...

Full description

Saved in:
Bibliographic Details
Published in:Central European 1993-04 (21), p.75
Main Authors: Sikora, Slawomir, Rymaszewski, Piotr, Kozlowski, Andrew
Format: Article
Language:English
Subjects:
Agreements
Bad debts
Banking industry
Banks
Commercial banks
Debt restructuring
Economic reform
Equity
Federal legislation
Impacts
Loans
Mediation
Nonperforming loans
Privatization
Public enterprise
Treasuries
Treasury bonds
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The Polish economy is overburdened with inter-enterprise debt, which is serviced by the banks and whose bad loans constitute from 20% to 35% of the total loan portfolio. Poland's financial restructuring program will move up a gear with the passing of the new law on Financial Restructuring of Enterprises and Banks. The Financial Restructuring Law creates incentives and imposes obligations on those affected by the law. Even so, it is evident that the program's success depends primarily on the willingness and individual intitiative of all of the interested parties. The financial restructuring of banks' loan portfolios is seen as an important element of the banking reform process. The improvement of the quality of banks' assets and the strengthening of their capital base are perceived as preliminary and necessary steps in the bank privatization program.
ISSN:0962-2543