Current issue:
ABOUT BUSINESS - 02.2009
LOT for sale
The Polish Ministry of the Treasury, which owns almost 68% of the shares in LOT wants to enter into a new agreement regarding sales of the national airlines” shares with the assignee SairLines (which has 25.1% of LOT’s shares). It would allow it to sell the assignee’s shares to an investor. Previous agreements anticipated that LOT shares would enter the stock market, but given the current financial state of LOT, that is not possible. The Ministry of the Treasury believes that the sale of LOT’s stocks will take place in the third quarter of this year.
The insurance market is doing well
In its entire history, Poland’s insurance market has never grown so dynamically. It was worth 45 billion zloty at the end of the third quarter of last year. This is all because of the life insurance policies that Poles have invested nearly 30 billion zloty in – as much as 57% more than they did last year. This enormous jump is because of banks, which took advantage of the boom in deposits and willingly sold so-called „anti-Belka” accounts (named after the minister of finance who introduced capital gains tax), regular bank accounts which are given in the form of a life insurance policy. Thanks to this configuration, clients avoid paying capital gains tax (the „Belka tax”).
The crisis is not a threat to us?
Analysts from the British bank HSBC estimate that Poland’s GDP will increase this year by 3% and in 2010 will be at the rate of 3.5%. What will determine the good condition of the Polish economy? According to the authors of the report, our economy has maintained strong growth base, in spite of the recession that is raging around the world. One of the reasons is that our economy is not highly dependent on exports. Their total value is presently only 33% of Poland’s GDP, whereas in other Central European countries it amounts to 65 or even 80%. Poland’s economy has other virtues, as well. Changes in personal income taxation which have just come into effect at the beginning of this year are also to its advantage. The transfer of the European Union funds, which should reach the level of 24 billion zloty, is also significant.
Good, regarding the euro
The benefits of introducing the euro to Poland will outweigh the costs, claims one of the vice-presidents of the National Bank of Poland. The strongest political party in the opposition, Prawo i Sprawiedliwośæ (Law and Justice), is skeptical about the date for our country to adopt the currency, which has been set by the government for 2012. The President, who is associated with that party, is of a similar opinion. Prawo i Sprawiedliwośæ wants a referendum on the matter, which the government does not agree to, claiming that Poles already agreed to the euro during the referendum about European Union accession, since that was one of the conditions of the membership. However, the government will have to force a change to Poland’s constitution through parliament, in order to remove the Polish zloty.
975 million from the World Bank
The World Bank is lending Poland 975 million euro. This money is supposed to finance the Polish labor market and health care reform. The Polish Ministry of Finance emphasizes that this loan has nothing to do with the current financial crisis.
Expressways for 3 billion euro
Generalna Dyrekcja Dróg Krajowych i Autostrad w Polsce (General Directorate for National Roads and Motorways in Poland) has finalized the largest road contract in history: a 180 kilometer stretch of the transeuropean route A1 from Stryków to Pyrzowice. The consortium Autostrada Południe (South Expressway), which is made up of Cintra Conessiones, Budimex and Ferrovial-Agroman, are supposed to build this road by 2012. The value of the investment will be from 2 to 3 billion euro.
Two tax brackets
In 2009, about 8 billion zloty will stay in Pole’s pockets due to lower personal income taxes, according to estimates by the Ministry of Finance. From January of 2009, the three tax brackets that were in effect last year, namely 19, 30 and 40%, will be replaced by only two tax brackets: 18 and 32%.
Record car sales
Last year, Poles bought a record 1.5 million cars. Most of them were used cars, however, and 1.1 million Poles imported, which is 11% more than a year ago. But new sedans and delivery vehicles also saw increased interest. More than 378,000 were sold, which is 9.3% more than in 2007. Toyota sold the most new cars, whereas the most frequently-purchased used car brand was Volkswagen.
Low fuel prices
Fuel prices in Poland are at record lows. There have not been such low fuel prices in Poland for six years. Gasoline and diesel in Poland are among the cheapest in the entire European Union. Experts claim that even if their prices go up this year, it will not be a significant increase. The entire economy will benefit, because they contribute to lowering inflation, which consumes part of families” budgets. Due to decreases in fuel prices, inflation will fall mid-year from 3.4% – its level in December of last year – to 2.5%.
Commemorative coins
Exactly 400 years ago, the first Poles came to the east coast of North America. As it is written in old American chronicles, „in the latest group of settlers, in 1608 in Jamestown there were about 70 new people, 8 people from Prussia and from Poland. Unfortunately, we do not know their names. It is only known that they were craftsmen who were hired by the authorities of the company in London, and were essential to the existence of this forested, agricultural colony. In subsequent years in the 17th century, the authorities of the Virgina Company continued to hire Polish craftsmen, a fact attested to by various surviving historical records. Those first Poles, whose names remain unknown, initiated a long tradition of emigration from Poland to North America. Today, the population in America with Polish roots amounts to more than 10 million people. The National Bank of Poland has commemorated the 400-year anniversary of the arrival of the first Poles in North American, emitting specially-designed coins with denominations of 100, 10, and 2 zloty
Roads built faster
In accordance with the announcements of the Polish government, expenditures on roads built with the European Union funds will increase from 10 billion zloty, as was previously planned, to 16.8 billion or even 21.4 billion. The increased tempo will be possible thanks to increased institutional and procedural efficiency, for instance, in the method of accounting for investments. Up to now, it was impossible to begin an investment until Brussels approved the project. Often it took 12 months to get a signature of approval. This year, that is supposed to change.
Less carbon dioxide
Poland is prepared to reduce its carbon dioxide emissions by 20% before 2020, declared the Polish Prime Minister, Donald Tusk, during the UN climate conference which took place last month in Pozna?. The Polish Prime Minister stated that the activities of the government aim to reach agreements with other countries. Tusk also declared that in 2020, operations will begin at the first nuclear power plant in our country.
A new car from Poland
Italian Fiat is considering the introduction of a new, inexpensive car brand. It is supposed to be produced in Poland, but it has not yet been stated where, exactly. The new car is expected to appear in 2010.
The Polish Ministry of the Treasury, which owns almost 68% of the shares in LOT wants to enter into a new agreement regarding sales of the national airlines” shares with the assignee SairLines (which has 25.1% of LOT’s shares). It would allow it to sell the assignee’s shares to an investor. Previous agreements anticipated that LOT shares would enter the stock market, but given the current financial state of LOT, that is not possible. The Ministry of the Treasury believes that the sale of LOT’s stocks will take place in the third quarter of this year.
The insurance market is doing well
In its entire history, Poland’s insurance market has never grown so dynamically. It was worth 45 billion zloty at the end of the third quarter of last year. This is all because of the life insurance policies that Poles have invested nearly 30 billion zloty in – as much as 57% more than they did last year. This enormous jump is because of banks, which took advantage of the boom in deposits and willingly sold so-called „anti-Belka” accounts (named after the minister of finance who introduced capital gains tax), regular bank accounts which are given in the form of a life insurance policy. Thanks to this configuration, clients avoid paying capital gains tax (the „Belka tax”).
The crisis is not a threat to us?
Analysts from the British bank HSBC estimate that Poland’s GDP will increase this year by 3% and in 2010 will be at the rate of 3.5%. What will determine the good condition of the Polish economy? According to the authors of the report, our economy has maintained strong growth base, in spite of the recession that is raging around the world. One of the reasons is that our economy is not highly dependent on exports. Their total value is presently only 33% of Poland’s GDP, whereas in other Central European countries it amounts to 65 or even 80%. Poland’s economy has other virtues, as well. Changes in personal income taxation which have just come into effect at the beginning of this year are also to its advantage. The transfer of the European Union funds, which should reach the level of 24 billion zloty, is also significant.
Good, regarding the euro
The benefits of introducing the euro to Poland will outweigh the costs, claims one of the vice-presidents of the National Bank of Poland. The strongest political party in the opposition, Prawo i Sprawiedliwośæ (Law and Justice), is skeptical about the date for our country to adopt the currency, which has been set by the government for 2012. The President, who is associated with that party, is of a similar opinion. Prawo i Sprawiedliwośæ wants a referendum on the matter, which the government does not agree to, claiming that Poles already agreed to the euro during the referendum about European Union accession, since that was one of the conditions of the membership. However, the government will have to force a change to Poland’s constitution through parliament, in order to remove the Polish zloty.
975 million from the World Bank
The World Bank is lending Poland 975 million euro. This money is supposed to finance the Polish labor market and health care reform. The Polish Ministry of Finance emphasizes that this loan has nothing to do with the current financial crisis.
Expressways for 3 billion euro
Generalna Dyrekcja Dróg Krajowych i Autostrad w Polsce (General Directorate for National Roads and Motorways in Poland) has finalized the largest road contract in history: a 180 kilometer stretch of the transeuropean route A1 from Stryków to Pyrzowice. The consortium Autostrada Południe (South Expressway), which is made up of Cintra Conessiones, Budimex and Ferrovial-Agroman, are supposed to build this road by 2012. The value of the investment will be from 2 to 3 billion euro.
Two tax brackets
In 2009, about 8 billion zloty will stay in Pole’s pockets due to lower personal income taxes, according to estimates by the Ministry of Finance. From January of 2009, the three tax brackets that were in effect last year, namely 19, 30 and 40%, will be replaced by only two tax brackets: 18 and 32%.
Record car sales
Last year, Poles bought a record 1.5 million cars. Most of them were used cars, however, and 1.1 million Poles imported, which is 11% more than a year ago. But new sedans and delivery vehicles also saw increased interest. More than 378,000 were sold, which is 9.3% more than in 2007. Toyota sold the most new cars, whereas the most frequently-purchased used car brand was Volkswagen.
Low fuel prices
Fuel prices in Poland are at record lows. There have not been such low fuel prices in Poland for six years. Gasoline and diesel in Poland are among the cheapest in the entire European Union. Experts claim that even if their prices go up this year, it will not be a significant increase. The entire economy will benefit, because they contribute to lowering inflation, which consumes part of families” budgets. Due to decreases in fuel prices, inflation will fall mid-year from 3.4% – its level in December of last year – to 2.5%.
Commemorative coins
Exactly 400 years ago, the first Poles came to the east coast of North America. As it is written in old American chronicles, „in the latest group of settlers, in 1608 in Jamestown there were about 70 new people, 8 people from Prussia and from Poland. Unfortunately, we do not know their names. It is only known that they were craftsmen who were hired by the authorities of the company in London, and were essential to the existence of this forested, agricultural colony. In subsequent years in the 17th century, the authorities of the Virgina Company continued to hire Polish craftsmen, a fact attested to by various surviving historical records. Those first Poles, whose names remain unknown, initiated a long tradition of emigration from Poland to North America. Today, the population in America with Polish roots amounts to more than 10 million people. The National Bank of Poland has commemorated the 400-year anniversary of the arrival of the first Poles in North American, emitting specially-designed coins with denominations of 100, 10, and 2 zloty
Roads built faster
In accordance with the announcements of the Polish government, expenditures on roads built with the European Union funds will increase from 10 billion zloty, as was previously planned, to 16.8 billion or even 21.4 billion. The increased tempo will be possible thanks to increased institutional and procedural efficiency, for instance, in the method of accounting for investments. Up to now, it was impossible to begin an investment until Brussels approved the project. Often it took 12 months to get a signature of approval. This year, that is supposed to change.
Less carbon dioxide
Poland is prepared to reduce its carbon dioxide emissions by 20% before 2020, declared the Polish Prime Minister, Donald Tusk, during the UN climate conference which took place last month in Pozna?. The Polish Prime Minister stated that the activities of the government aim to reach agreements with other countries. Tusk also declared that in 2020, operations will begin at the first nuclear power plant in our country.
A new car from Poland
Italian Fiat is considering the introduction of a new, inexpensive car brand. It is supposed to be produced in Poland, but it has not yet been stated where, exactly. The new car is expected to appear in 2010.
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Information published at 3 February 2009