PLN 15bn in revenues from privatisation in 2011?

2010-09-08

The government expects to raise PLN 15bn (€3.8bn) from privatisation next year, according to the draft 2011 budget revealed on 7 September. The target is part of a wider plan designed to raise PLN 55bn (€13.9bn) over 2010-2013, including PLN 30bn (€7.6bn) in the three years to 2013. Among other things, the plan for next year envisages the sale of further government holdings in financial groups PZU and PKO BP and continued privatisation of energy and chemical companies, as well as the sale of small and medium companies through open public bidding. In this latter connection, also on 7 September the government approved a draft amendment to the Commercialisation Law that would allow the Treasury Ministry to set the asking price for companies sold via open public bidding at below their book value (where their market value is lower), a change that is expected to substantially facilitate the process. (At the moment if often happens that an auction attracts no bids due to an asking price that is considered above the market value).