Poland to delay debt payment

Press, 29 April 1981, Page 9

Poland to delay debt payment

NZPA-Reuter Pari; Officials from Poland’s 15 main Western creditor nations have agreed that Poland can put,.off .repay-' ment of a large chunk of immediate debts to help relieve its stricken economy. A communique issued after the officials met in Paris said they had agreed to “reschedule” — delay repayment of — much of Poland’s .official. debt to the Western governments falling due during 'the rest of Informed sources estimated that the amount re§> cheduled totalled some $2900 : million. Repayment-of'these debts-wilTnow be spread out .over the coming years. Amid warnings that its economic crisis was deepening, Poland had asked the Western governments tb reschedule $4900 million of its official debt by the end of this month. The Paris meeting was the latest in a series of discussions to agree on a response to Poland’s request. The Polish Finance Minister (Mr Marian Krzak) told reporters at the signing ceremony in the French Treasury that the agreement was a cooperation with the West. “Poland is in a difficult El, and as the Prime ter said recently we are in a dark tunnel. This agreement brings us nearer the light,” Mr Krzak said. “We are determined to do everything we can to improve our economy and improve co-operation with the West,” he added.

He said the agreement also gave Warsaw a good basis on which to work in seeking debt-rescheduling from private banks. At parallel but separate talks in London, Poland has been urging Western bankers to refinance some $3400 million in commercial debts due for repayment this year. Some 350 banks have set up a 19-member task-force to negotiate on their behalf. They are expected to propose plans for long-term rescheduling within the next few weeks. Sources in Paris estimated Poland’s total foreign debts at about $29,000 million, about 40 per cent of which is official, or Governmentbacked, and the remaining is owed to private banks.