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ABOUT BUSINESS - 05.2009
Budimex is doing well
Budimex is one of the largest general contractors in Poland. It realizes contracts in the areas of transport infrastructure, large structures, and environmental protection. The strategic investor of Budimex is the Spanish group Ferrovial. The board of Budimex has suggested devoting all of the profits from 2008 to dividends. Budimex had very good financial results last year. Its net profits amounted to more than 49 million zloty.
Gigantic stock issue
In mid-July, the issue of PKO BP stocks is supposed to take place, informs Reuters. According to analysts, stocks worth around 5 billion zloty will be sold, which is nearly one fourth of its market value. At the end of 2008, the capital of PKO BP (adding profits from the first half of last year) amounted to 13.1 billion zloty.
Poland is paying off debts
We have (almost) paid off all of the debts taken by our country in the 1970s by communist governments. Poland paid its last installment – 886 million dollars – on its loan from the Parisian Club, meaning western governments. 340 million dollars are still left to pay off from the 1970s to commercial banks.
The government will help
The Polish government accepted the anti-crisis legislation packet co-created by a three-sided commission by employers and unions. It foresees, among other things, government aid in paying salaries. The government will help in situations of so-called „stand-by” salaries, which will be paid to workers from industries and positions that are in danger of unemployment. It will be a loan, paid back by employers after the worst period of the crisis is over, in the form of larger social benefits payments, for instance. The government prefers to spend money this way instead of paying for welfare benefits.
Export 400% higher
Cars from the Polish Fiat and Volkswagen factories are doing very well in Germany. Exports of Fiats from the factory in Tychy increased to that country last year by... 400%. This is the effect of a 2,500 euro premium that the German government pays people for buying new cars and selling their old ones (over 9 years) for scrap. Since the subsidies are only paid for cars with low emissions, Fiat Panda and Fiat 500 are enjoying record-breaking popularity, as is Volkswagen Caddy Life from Poznań. As a result, more than 25,800 new cars ended up on the other side of the western border of Poland. That balanced out the drop in demand from other markets, such as those in Italy and France.
Four new stock funds
Franklin Templeton Investments (FTI), an international investment fund management group, is opening four new stock funds in our country. In doing so, the number of FTI funds will grow to 65. The new funds have been available since the 23rd March.
Less bureaucracy
Starting from the 1st of April, there is less bureaucracy in Poland: it is now possible to register a company at one window. A businessperson can suspend economic activity without any problem for as long as desired. Solutions like these result from amendments to laws regarding freedom to carry out business, which came into effect on the 1st of April. As well, starting on that day, people who for reasons beyond their control have fallen into debt and cannot pay are allowed to declare personal bankruptcy. This possibility was created by an amendment to laws regarding „bankruptcy and repair”.
Is there a crisis in Poland?
- Fortunately, Poland has been affected by the crisis to a much weaker extent than other countries – claims Prof. Leszek Balcerowicz, the former Deputy Prime Minister and Minister of Finance. What should be done in this situation? The professor advises removing laws that interfere with good activity, reform the justice system, privatize, increase the capital of banks so that they can give loans, make public finances healthier, limit spending, and carry out public-private partnerships (why should the public sector be the only one to manage large enterprises?).
Cheap shopping in crisis
In the crisis, Poles have started buying cheap products. Above all, discount stores are benefitting from this. The two largest ones, „Biedronka” and „Lidl”, have felt the upturn and have already announced plans to speed up the development of their chains in 2009. „Biedronka” intends to open 150 new stores (they already have 1,359 of them) and „Lidl” will add 20-30 more shops to the 300 they currently have. Until now, Poles left 10% of their shopping money at discount stores, which is around 22.4 billion zloty. 71% of Poles now declare that they buy food at these chain shops. The significantly lower prices have also started to attract customers of traditional hypermarkets and supermarkets like Carrefour, Auchan or Tesco.
The popularity of mobile internet
Mobile internet comprises almost one fifth of the total broadband connections in Poland, according to the Bureau of Electronic Communications. That comes as no surprise, since its quality is comparable to the internet through a cable, and the prices are more and more accessible. Mobile internet does not replace stationary connections, but it is definitely an excellent complement to it. Research by the British market regulator Ofcom shows that as many as 68% of users with portable connections to the web also have a permanent connection at home. Only 25% of British people have connections to the internet exclusively through mobile phone operators.
Budimex is one of the largest general contractors in Poland. It realizes contracts in the areas of transport infrastructure, large structures, and environmental protection. The strategic investor of Budimex is the Spanish group Ferrovial. The board of Budimex has suggested devoting all of the profits from 2008 to dividends. Budimex had very good financial results last year. Its net profits amounted to more than 49 million zloty.
Gigantic stock issue
In mid-July, the issue of PKO BP stocks is supposed to take place, informs Reuters. According to analysts, stocks worth around 5 billion zloty will be sold, which is nearly one fourth of its market value. At the end of 2008, the capital of PKO BP (adding profits from the first half of last year) amounted to 13.1 billion zloty.
Poland is paying off debts
We have (almost) paid off all of the debts taken by our country in the 1970s by communist governments. Poland paid its last installment – 886 million dollars – on its loan from the Parisian Club, meaning western governments. 340 million dollars are still left to pay off from the 1970s to commercial banks.
The government will help
The Polish government accepted the anti-crisis legislation packet co-created by a three-sided commission by employers and unions. It foresees, among other things, government aid in paying salaries. The government will help in situations of so-called „stand-by” salaries, which will be paid to workers from industries and positions that are in danger of unemployment. It will be a loan, paid back by employers after the worst period of the crisis is over, in the form of larger social benefits payments, for instance. The government prefers to spend money this way instead of paying for welfare benefits.
Export 400% higher
Cars from the Polish Fiat and Volkswagen factories are doing very well in Germany. Exports of Fiats from the factory in Tychy increased to that country last year by... 400%. This is the effect of a 2,500 euro premium that the German government pays people for buying new cars and selling their old ones (over 9 years) for scrap. Since the subsidies are only paid for cars with low emissions, Fiat Panda and Fiat 500 are enjoying record-breaking popularity, as is Volkswagen Caddy Life from Poznań. As a result, more than 25,800 new cars ended up on the other side of the western border of Poland. That balanced out the drop in demand from other markets, such as those in Italy and France.
Four new stock funds
Franklin Templeton Investments (FTI), an international investment fund management group, is opening four new stock funds in our country. In doing so, the number of FTI funds will grow to 65. The new funds have been available since the 23rd March.
Less bureaucracy
Starting from the 1st of April, there is less bureaucracy in Poland: it is now possible to register a company at one window. A businessperson can suspend economic activity without any problem for as long as desired. Solutions like these result from amendments to laws regarding freedom to carry out business, which came into effect on the 1st of April. As well, starting on that day, people who for reasons beyond their control have fallen into debt and cannot pay are allowed to declare personal bankruptcy. This possibility was created by an amendment to laws regarding „bankruptcy and repair”.
Is there a crisis in Poland?
- Fortunately, Poland has been affected by the crisis to a much weaker extent than other countries – claims Prof. Leszek Balcerowicz, the former Deputy Prime Minister and Minister of Finance. What should be done in this situation? The professor advises removing laws that interfere with good activity, reform the justice system, privatize, increase the capital of banks so that they can give loans, make public finances healthier, limit spending, and carry out public-private partnerships (why should the public sector be the only one to manage large enterprises?).
Cheap shopping in crisis
In the crisis, Poles have started buying cheap products. Above all, discount stores are benefitting from this. The two largest ones, „Biedronka” and „Lidl”, have felt the upturn and have already announced plans to speed up the development of their chains in 2009. „Biedronka” intends to open 150 new stores (they already have 1,359 of them) and „Lidl” will add 20-30 more shops to the 300 they currently have. Until now, Poles left 10% of their shopping money at discount stores, which is around 22.4 billion zloty. 71% of Poles now declare that they buy food at these chain shops. The significantly lower prices have also started to attract customers of traditional hypermarkets and supermarkets like Carrefour, Auchan or Tesco.
The popularity of mobile internet
Mobile internet comprises almost one fifth of the total broadband connections in Poland, according to the Bureau of Electronic Communications. That comes as no surprise, since its quality is comparable to the internet through a cable, and the prices are more and more accessible. Mobile internet does not replace stationary connections, but it is definitely an excellent complement to it. Research by the British market regulator Ofcom shows that as many as 68% of users with portable connections to the web also have a permanent connection at home. Only 25% of British people have connections to the internet exclusively through mobile phone operators.
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Information published at 13 May 2009