wbj #12 2011
DESCRIPTION
Lokale Immobilia Software producer Asseco has aggressive international ambitions Justice Minister Krzysztof Kwiatkowski talks the pros and cons of Poland’s justice system 6-7 • Rezydencje LeÊne • Property restitution • Ghelamco’s Synergy 15-19 A host of firms have released their 2010 results, including the Warsaw Stock Exchange There are fewer than 100 days until Poland’s EU presidency. Is it ready? Since 1994 . Poland’s only business weekly in English 12-13 WWW.WBJ.PLTRANSCRIPT
VOLUME 17, NUMBER 12 • MARCH 28 – APRIL 3, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
PPKKOO ffoorr ssaallee??The Treasury is to decide on
the future of its stake in
leading bank PKO BP this week 5
Since 1994 . Poland’s only business weekly in English
WW
W.W
BJ.P
L
Rising strengthPoland still depends
on NATO for its
security, but it has
become a force to be
reckoned with in its
own right 12-13
CCaalllleedd ttoo aaccccoouunnttErrors in Poland’s national
accounting could spell major
trouble for the economy 3
SH
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457
A host of firms have released
their 2010 results, including
the Warsaw Stock Exchange
Software producer
Asseco has aggressive
international ambitions
There are fewer than 100
days until Poland’s EU
presidency. Is it ready?
News . . . . . . . . . . . . . . . . . . . . . . .2-4
Industry News . . . . . . . . . . . . . . . . .5
Business Environment . . . . . . . . . .6
Listed Firms . . . . . . . . . . . . . . . . . . .7
Interview . . . . . . . . . . . . . . . . . . . .8-9
Opinion . . . . . . . . . . . . . . . . . . . . . .11
Cover Story . . . . . . . . . . . . . . . .12-13
Markets . . . . . . . . . . . . . . . . . . . . . .14
Lokale Immobilia . . . . . . . . . . .15-19
The List . . . . . . . . . . . . . . . . . . .20-21
Arts & Culture . . . . . . . . . . . . . . . .22
Last Word . . . . . . . . . . . . . . . . . . . .23
In this issue
REAL ESTATELokale Immobilia
• Rezydencje LeÊne
• Property restitution
• Ghelamco’s Synergy
15-19
Judging thesystemJustice Minister
Krzysztof Kwiatkowski
talks the pros and cons
of Poland’s justice
system 6-7
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O I
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TM
EN
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A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce
Commercial banks
20-21
A GUIDE TOPOLISH EXPORT
For advertising and promotion opportunities contact:Agnieszka Brejwo: [email protected]; (+48) 639-85-68, ext. 226
w i l l h i t s h e l v e s i n A p r i l 2 0 1 1 !
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RomaniaPolandLatviaHungaryFranceEU27
MARCH 28 – APRIL 3, 2011NNEEWWSS2 www.wbj.pl
Obama coming
to Poland
US President Barack
Obama is scheduled to
visit Poland on May 27.
During his first official
visit in the country, he
will meet with President
Bronis∏aw Komorowski
and Prime Minister
Donald Tusk, among
others. According to the
White House, President
Komorowski extended
an invitation to his
American counterpart
during his visit to
Washington in
December of last year.
The US Embassy has
confirmed that Mr
Obama will visit Poland
as part of a May 23-28
trip to Europe, during
which he will also visit
Ireland, the United
Kingdom and France.
Polish
parliament
passes
pension reform
The government’s
pension reform plan has
been green-lit by
members of parliament.
Two hundred and thirty-
seven MPs voted for the
bill, 154 were against it
and 40 abstained. The
bill will now go to the
Senate for approval.
The reform will reduce
monthly salary
contributions to private
pension funds from 7.3
percent to 2.3 percent. By
2017, the amount going
to the OFEs is supposed
to increase to 3.5
percent. The government
wants the reform to come
into effect by May 1.
Kaczyƒski
goes shopping
Jaros∏aw Kaczyƒski,
head of Law and Justice
(PiS), Poland’s main
opposition party, put on
a show at a local grocery
store in Warsaw last
Tuesday. His goal was to
illustrate how prices
have risen under the
current government. Mr
Kaczyƒski bought sugar,
chicken, potatoes,
vegetables and apples
and presented the
receipt at a press
conference. The total
came to z∏.55.60. The PiS
leader stated that in
2007, when his party led
the nation, he would
have paid around z∏.24.
Former Finance
Minister Leszek
Balcerowicz later
disagreed with him,
noting that shops set
prices, not
governments. ●
Abantia ......................................17
Action..........................................18
AIG Bank Polska ........................20
AIG Lincoln ................................19
Alior Bank ..................................21
AMC-Andrzej M. Cho∏dzyƒski....17
Asseco Poland........................5, 14
Azora Europe..............................17
Bank BG˚ ..................................20
Bank BPH ..................................20
Bank DnB NORD Polska ..........21
Bank Gospodarstwa Krajowego..5
Bank Handlowy w Warszawie....20
Bank Millennium........................20
Bank Ochrony Ârodowiska ........21
Bank Pekao ..........................14, 20
Bank Pocztowy ..........................21
Bank Polskiej Spó∏dzielczoÊci ..21
Bank Zachodni WBK..................20
BRE Bank ..................................20
Bumar ..................................12, 13
Business Solution ......................18
CB Richard Ellis ..................18, 19
CEZ ............................................14
Coca-Cola ..................................16
Colliers International ................18
Cushman & Wakefield ..............16
Danske Bank..........................3, 11
Deutsche Bahn ............................5
DI BRE..........................................7
Dom Towarowy Bracia
Jab∏kowscy ................................19
DZ BANK Polska........................21
Emitel ..........................................9
Exatel............................................7
Ferro ............................................5
Formula Systems ........................5
Fortis Bank Polska ....................20
Gazprom ......................................7
General Motors ..........................23
Ghelamco ..................................15
Globe Trade Centre..............14, 15
Hachette ....................................17
Helio ..........................................14
HSBC Bank Polska ....................21
Impel ..........................................14
ING Bank Âlàski ........................20
Invest-Bank................................21
Ipopema Securities......................5
ISource ......................................17
Jaspers-Eyers & Partners ........15
Jones Lang LaSalle ..................15
KGHM ........................................14
Konica Minolta ..........................18
Kredyt Bank ..............................20
LHI ..............................................19
Lukas Bank ................................21
MBDA ........................................13
MediaCom ..................................17
Mermaid Properties ..................18
Military Property Agency ..........16
Miller Canfield, W. Babicki, A.
Chelchowski & Partners ....13, 19
Montagu Private Equity ..............9
Mostostal Warszawa..................18
MOT ............................................16
NFI Midas ..................................14
NFI Octava..................................14
Nordea Bank ..............................21
Novaservis....................................5
OHL ............................................18
One-2-One..................................14
Onet.pl ........................................18
OnStar ........................................23
PBG ......................................14, 18
PGE ..............................................7
PGNiG ..........................................7
PKO Bank Polski....................5, 20
PKP Intercity ................................9
Polbank EFG ..............................21
Polimex-Mostostal ....................14
Polkomtel ..............................7, 17
PolRest ......................................14
Polska Grupa Energetyczna ......14
Pronox Technology ....................14
Rabobank Polska ......................21
RADWAR ....................................13
Raiffeisen Bank Polska ............20
Rainbow Tours ..........................14
Rubicon Partners ......................14
Santander Consumer Bank ......21
SAP ..............................................5
SC Johnson ................................16
Segro ..........................................18
Société Générale........................21
Sonitus Medical ........................23
Sony Ericsson ............................23
StoMM Architektura ..................15
Tauron ....................................5, 14
Telecommunications Research
Institute in Warsaw ....................13
Telepizza ....................................17
TP............................................9, 14
Trust Properties ........................18
TVN ............................................18
UBS ............................................17
Vattenfall ......................................7
VF Polska Distribution ..............17
Volkswagen Bank Polska ..........21
Wars ............................................9
Warsaw Stock Exchange ............7
W∏odarzewska............................16
X-Trade Brokers ..........................3
Zetkama ....................................14
ZEW Nidzica ................................7
ZUMI ..........................................18
Grzegorz Schetyna, a topmember of the ruling CivicPlatform (PO) party as well asthe speaker of the Sejm, hasstated his intention to vote tostrip Jaros∏aw Kaczyƒski,leader of Law and Justice(PiS), Poland’s largest opposi-tion party, of parliamentaryimmunity.
A vote on the matter will beheld this week, Mr Schetynatold Radio Zet. An absolutemajority is needed to pass sucha resolution.
The timing is a little curi-ous. If the motion were topass, Mr Kaczyƒski’s immunitywould be withdrawn just daysbefore the first anniversary ofthe Smolensk catastrophe inwhich his twin and sister-in-law, President Lech Kaczyƒskiand First Lady Maria Kaczyƒs-
ka, perished along with 94 oth-ers. With the spotlight natural-ly on the PiS leader on thisoccasion, he would be assuredof abundant media coverageand given a chance to make acase against his opponents.
The motion to waive hisimmunity was requested byRoman Giertych, a formerdeputy prime minister (2006-2007) in the PiS-led govern-ment, which Mr Kaczyƒskiheaded. In a 2010 interviewwith the daily Rzeczpospolita,Mr Giertych said that, as PM,Mr Kaczyƒski had “gathereddirt” on political opponents inorder to discredit them duringelection campaigns.
In response, Mr Kaczyƒskisued Mr Giertych for spread-ing “lies.”
Roman Giertych, a lawyer
by profession, then filed civiland criminal counter-suits,accusing Mr Kaczyƒski of slan-der. However, due to MrKaczyƒski’s parliamentaryimmunity, the proceedingshave been suspended.
Mr Giertych claims to havewitnesses willing to confirm hisaccusations against the formerPM, such as former InteriorMinister Janusz Kaczmarekand former Deputy PrimeMinister Andrzej Lepper. IfMr Kaczyƒski were foundguilty, he could face up to twoyears in prison.
As WBJ went to press,Jaros∏aw Kaczyƒski had yet torespond to Mr Schetyna’sstatements. A co-founder ofLaw and Justice, he has led theparty since 2003.
RReemmii AAddeekkooyyaa
“The gas terminal is not a monument toanyone. It’s just a terminal to supply
people with gas”Prime Minister Donald Tusk responds to Law and Justice’s calls for the
ÂwinoujÊcie LNG terminal to be named after late President Lech Kaczyƒski
Quote of the Week
Watching Wajda
Oscar-winning Polish filmmaker Andrzej Wajda wasrecently awarded the Order of the White Eagle,Poland’s oldest and highest state distinction, by Pres-ident Bronis∏aw Komorowski. Log on to WBJ.pl for aretrospective of Mr Wajda’s work.
On WBJ.pl
Numbers in the News
Company index
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MARCH29-30 CEE BANKING SUMMITEvent: The 4th edition of the CEE Banking Summit.
Location: Hotel Polonia Palace, Warsaw.www.tcct.pl
APRIL 4 RPP MEETINGEvent: The National Bank of Poland's Monetary Poli-
cy Council (RPP) rate-setting body begins itstwo-day meeting.
5 RPP MEETING
Event: The National Bank of Poland's Monetary Poli-cy Council (RPP) rate-setting body ends itstwo-day meeting and announces its decisionon interest rates.
8-10 TOURISM TRADE SHOW
Event: 3rd edition of the International Tourism TradeShow – MTT Wroc∏aw. Location: OrbitaHall, 34 Wejherowska Street, Wroclaw.www.mttwroclaw.pl
March/April
DATELINE
Jaros∏aw Kaczyƒski
IN THE SPOTLIGHT
Figures in focus
In times of freight crisis
Volume of road and rail freight in selected EU countries, annual
change 2008-2009
Source: Central Statistical Office
€275 million was the trade surplus reported by the central bank
in January 2011
€10-15 billion is how much Polish import figures for 2010 might be
off by, due to an accounting error
z∏.16.5 billion is Rzeczpospolita's projection for total 2011 dividend
payments by WSE-listed firms
58% of Poland's university students are female
MARCH 28 – APRIL 3, 2011 NNEEWWSS www.wbj.pl 3
Nuclear power
Government to hold referendum
on Poland’s nuclear future?Prime MinisterDonald Tusk raisedeyebrows by mootingthe idea last week
In a surprising about-face,Prime Minister Donald Tuskhas said he has not excludedthe possibility of holding a ref-erendum on whether Polandshould build nuclear powerplants.
At a press conference lastweek, the PM said that with-out the support of the popula-tion, building a nuclear powerplant would make little sense.However, he expressed confi-dence that Poles are keen tohave a modern and safenuclear plant.
The prime minister said hebelieved the Polish public is,above all, interested in cheap,safe and clean energy.
“We can not give way topanic,” Mr Tusk was quoted byTVN24 as saying, referring torenewed uneasiness aboutnuclear energy in the wake ofthe crisis at Japan’s FukushimaDaiichi nuclear power plant.
Japan’s nuclear woes havesparked a crisis of confi-dence in Europe, but Polandinitially seemed immune toit. Immediately after theFukushima situation beganto unfold, Mr Tusk’s state-ments made clear that heintended to move the coun-try’s nuclear energy planahead as scheduled.
In terms of Polish publicopinion, however, the pic-ture is mixed. According to asurvey by SMG/KRC con-ducted after the first explo-sion at the Fukushima Dai-ichi plant, 47 percent ofPoles approved of Poland’splan to develop nuclearpower, while 46 percentopposed it.
An online survey conduct-ed last week by Money.pl, inwhich over 13,000 people par-ticipated, found that 65 per-cent of respondents were infavor of building a nuclearplant in Poland, while 30 per-cent opposed the idea.
Mr Tusk alluded to thepossibility of employing a ref-erendum to decide the matterwhile on a visit to northernPoland. He was there to laythe first stone of an LNG ter-minal in ÂwinoujÊcie which isscheduled for completion in2014.
Both the LNG terminaland the project to build twonuclear power plants, the firstof which should come onlinein 2020, are part of Poland’sstrategy to end its depend-ence on Russian gas and oncoal, from which it derivesover 90 percent of its energy.
AAlliiccee TTrruuddeellllee
Poland and the EU
Major decisions at summitPoland OKs the EuroPlus Pact, EuropeanStability Mechanism
EU leaders gathered in Brus-sels last week to discuss a num-ber of hot-button issues: theeuro zone’s economic woes, thesituation in Libya and thefuture of nuclear power follow-ing the crisis in Japan.
Amidst worries that Portu-gal would soon become thethird EU country to need abailout, leaders reached anagreement on a €700 billionpermanent crisis-relief mecha-nism. From 2013 the EuropeanStability Mechanism willreplace the temporary Euro-pean Financial Stability Facility,which is already being used tolend money to Greece and Ire-land. An EU-wide stress test tobe carried out between Marchand June has also been agreedupon.
The 17 euro zone countriesplus six others, includingPoland, also agreed to adopt aglobal package of measures topreserve financial stability andboost growth called the EuroPlus Pact. Polish Prime MinisterDonald Tusk had previouslyexpressed his approval of suchan agreement, noting thatincluding non-euro countrieswould prevent the creation of a“two-speed” union.
EU leaders also decided toadopt further sanctions onLibya, “including measures toensure that oil and gas revenuesdo not reach the Gaddafi
regime.” France pushed forsending humanitarian aid andfor the recognition of the rebel-led National Council, but sever-al countries, including Poland,opposed.
On the second day of thesummit, the leaders’ attentionturned to nuclear power. Theyagreed on nonbinding safetyrules and optional, nation-ledstress tests for Europe’s 143nuclear power plants. Theyhave also requested that non-EU countries, particularlyneighboring nations, conductsimilar tests.
In response, the EuropeanAtomic Forum, a Brussels-based trade association for theEuropean nuclear energyindustry, issued a communiquéto EU leaders, echoing PMTusk’s domestic stance onnuclear power since the Japandisaster.
“It is premature to drawconclusions from the tragedy inJapan with regard to the Euro-pean nuclear energy program… the combination of events inJapan is extremely unlikely tooccur in Europe.”
AAlliiccee TTrruuddeellllee
SH
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Chernobyl still lingers in the minds of many Poles
Macroeconomics
PPoollaanndd hheeaaddeedd ffoorr aann aaccccoouunnttiinngg ddiissaasstteerr??There's cause forconcern, but no need topanic yet, experts say
Reports of major discrepanciesin Poland’s official economicdata have raised questionsabout the true picture of its eco-nomic health.
The issue came to light dur-ing a Reuters interview withMiros∏aw Gronicki, advisor tothe president of the NationalBank of Poland.
“We have a problem. In thebalance of payments, in theerrors and omissions category, ahuge number appeared, reach-ing four percent of GDP. If thisis caused by underestimatedimports, the trade and servicesdeficit is bigger and thereforethe current account deficit isalso bigger,” Mr Gronicki said.
“Such a situation wouldcause financial investors tochange how they view Polishinstruments, and secondly,would impact GDP estimates.Underestimated importsmeans GDP is overestimated,with all the consequences
related,” he added.
Bad newsAn analysis issued by DanskeBank predicts that importscould have been underestimat-ed by as much as €10-15 billionin 2010 alone. This would meanoverestimated GDP growthand a much worse macroeco-nomic picture for Poland: thedebt-to-GDP ratio in such acase would probably havebreached the threshold of 55percent, at which point austeri-ty measures must be imple-mented.
“This is bad news as it basi-cally calls into question thequality of the entire Polishnational accounts since EUaccession in 2004 – this is whenthe problem with increased[errors and omissions] appar-ently started,” stated the report.
For example, Poland’s Cen-tral Statistical Office (GUS)shows the country having a €2billion surplus with Germany.On the other hand, Germandata shows Germany having thesurplus in trade with Poland.
The difference is around€11.7 billion for 2010.
Possible consequencesIf it is confirmed that the tradedeficit figures have indeed suf-fered from poor accounting andthe figures are revised signifi-cantly, one of the main con-cerns will be public debt. TheFinance Ministry has previouslystated that preliminary data
indicates a debt-to-GDP levelof 53.5 percent in 2010.
For example, if GDP is re-vised downward it would pushthe debt ratio beyond 55 per-cent of GDP, and the govern-ment would be legally bound totighten fiscal policy. The nextbudget would have to be draft-ed without a deficit.
The government’s pledge toreduce the budget deficit to
below three percent of GDP in2012, as part of the EuropeanCommission’s requirements forjoining the euro zone, wouldalso be out of the question.
“This is definitely not ahealthy situation, because, aseconomists, we shouldn’t haveto be digging deep into the datamethodology and worryingabout its quality, as is the casetoday,” said Przemys∏aw
Kwiecieƒ, chief economist at X-Trade Brokers.
It’s difficult to make a prop-er assessment of the situationjust yet, he noted, but in hisopinion the discrepancies areunlikely to be attributable toimports to the extent that theywill significantly affect GDP fig-ures.
In response to the situation,GUS said that the reason forthe difference in the Polish andGerman data is a result of a dif-ference in what the Germansqualify as exports to Poland andwhat Poland qualifies asimports from Germany.
They say many goodsbrought in from Germany arein fact from some other coun-tries of origin, such as China.
“Comparing exports fromGermany to imports to Poland(showing on the import side allgoods sent from Germany toPoland, irrespective of their ori-gin) you can see a big similarityin the data,” Ewa Adach-Stankiewicz from GUS toldReuters.
RReemmii AAddeekkooyyaa
TU
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Former Finance Minister Gronicki was at a loss to explain the statistical disparity
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Mr Tusk wants to avoid a “two-speed” European Union
MARCH 28 – APRIL 3, 2011NNEEWWSS4 www.wbj.pl
Lost Chopin
letters found
A collection of letters
written by Polish
composer Fryderyk
Chopin have been
donated to the Fryderyk
Chopin Museum in
Warsaw. The letters
were believed lost in
1939. The collection was
donated by Marek Keller,
an emigrant Polish art
dealer. Mr Keller hasn’t
revealed from whom he
obtained the documents.
‘Golden
Harvest’
backlash“Anti-Polish books sold
here,” is a poster
familiar to Gdaƒsk
booksellers stocking the
controversial new book
“Golden Harvest” by Jan
Tomasz Gross and Irena
Grudziƒska-Gross. The
authors accuse Poles of
having taken part in the
Holocaust and looting
Jewish estates. “The aim
of our project is to
discourage booksellers
from selling the book, to
let them know that by
selling it, they’re taking
part in something
shameful,” said an
unidentified person
interviewed by
Rzeczpospolita. ●
Reports of chaos amidpreparations are“rubbish,” according tothe government
With fewer than 100 days beforethe start of its presidency of theEU Council, Poland lags wellbehind. At least that’s how Gaze-ta Prawna told the story lastweek, citing, among otherthings, the country’s tardiness infinding interpreters and liaisonofficers, and in arranging trans-port solutions and accommoda-tion for the thousands of EUofficials traveling to and fromPoland.
“That’s rubbish,” counteredMiko∏aj Dowgielewicz, the gov-ernment’s plenipotentiary incharge of preparations for theevent. Speaking at a specialforum last week, he assuredattendees that Poland is ontrack to effectively discharge itsduties during the presidency.
Many prioritiesThe priorities for the Polishpresidency, officially approvedby the government in mid-March, focus on three mainareas: further EU integration asa source of growth, Europeansecurity and bettering ties withnon-member states, particularly(but not limited to) the six
nations covered by the EasternPartnership plan.
The “openness” which thePolish presidency seeks extendsto the nations of North Africaand the Middle East. Polandaspires to be at the helm of theEU Council when accessiontalks with Croatia are finalizedand, despite resistance fromother bloc members, it remainskeen on talks with Turkey.
More specifically, MrDowgielewicz said Polandwanted to use the presidency asan opportunity to promoteitself internationally and towork on a post-crisis strategy toguarantee the stability of theeuro, promote pro-growth poli-cies and find ways to modernizethe EU’s common agriculturalpolicy.
He also spelled out worriesconcerning the situation inNorth Africa and EU security.
“The current events in NorthAfrica and elsewhere haveshown us that security and sta-bility are not something we cantake for granted here in Europe.The events should give us addedimpetus to try and strengthenthese two spheres,” he said,adding that Poland wantedEgypt and Tunisia to get a clearsignal from the EU that it sup-ported the democratic changes
in those countries and was readyto help. And how exactly doesPoland plan to help?
“There are electionsplanned in Tunisia in July and inSeptember in Egypt. After this,in the second half of the Polishpresidency, we plan to organizea summit in Poland of high-ranking EU representativesand representatives from NorthAfrica where we will offer our
cooperation in concrete terms,”he said. “What we must defi-nitely avoid is the financing ofdictatorships as has unfortu-nately happened in the past.”
Talking TurkeyMr Dowgielewicz also reaf-firmed Poland’s strong supportfor the EU candidatures ofCroatia, Serbia and Montene-gro. “I hope that Croatia will
sign an accession treaty withthe EU during the Polish presi-dency, while Serbia gains can-didate status and Montenegrocomes closer to accession,” MrDowgielewicz said.
Challenged on the conspic-uous absence of Turkey fromhis comments, as opposed tothose of Foreign MinisterRados∏aw Sikorski, who hadrecently stressed Poland’s sup-port for that country’s acces-sion, Mr Dowgielewicz down-played the matter.
“That should in no way beregarded as a political state-ment. There are several coun-tries aspiring for EU member-ship right now and I simply didnot mention all of them,” hetold WBJ. “Poland’s foreignpolicy has not changed on thismatter. We are still very muchin support of Turkey joining theEU and will work with ourTurkish as well as EU partnersduring our presidency to worktowards this goal.”
Generating enthusiasm forTurkish membership amongother EU countries will be anuphill battle. But if Poland canprove the critics wrong and runits presidency efficiently, itspolitical capital will assuredlygrow.
RReemmii AAddeekkooyyaa
Presidency of the EU Council
Poland ‘prepared’ for its presidency
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Mr Dowgielewicz sees the presidency as a chance to
promote Poland on the world stage
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A decision on thematter is expected this week
The Treasury Ministry is due todecide on the future of itsmajority stake in Poland’slargest lender, state-ownedPKO Bank Polski, this week.According to recent commentsfrom officials, it appears tofavor selling shares in the bankvia a public offering.
The Treasury owns a 40.99percent stake in PKO BP andwill sell an undisclosed portionof its holding alongside state-owned Bank GospodarstwaKrajowego, which currentlyholds 10.25 percent.
“I am leaning towards adecision to sell shares in PKO
BP [through] a public offer-ing,” Treasury Minister Alek-sander Grad told reporters.
Mr Grad did not reveal howmany shares would be sold, norwhen the sale would take place.Treasury Ministry spokesper-son Piotr Koszewski declinedto comment on the issues.
Nevertheless, the sale willlikely occur some time duringautumn 2011, as BGK has pre-viously said it would be ready tosell in Q3 of this year.
For its part, the governmenthas previously stated that itmight slash its stake in PKO to25 percent by 2013. AndPoland wants to generate z∏.15billion from asset sales this yearto help fund the budget deficitand curb debt.
In 2010, Jan KrzysztofBielecki, the prime minister’stop economic advisor, evensuggested Poland could sell itsentire stake in the bank withinthe next couple of years. Thisappears unlikely at present,however, as the governmentseems keen on retaining con-trol of the bank.
In mid-April, PKO share-holders will meet to vote on aproposal to limit the votingrights of all shareholders(besides the Treasury andBGK) to 10 percent. A vote infavor would allow the govern-ment to reduce its stake butretain control of the lender.
PKO shares were up 2.07percent on the week.
GGaarreetthh PPrriiccee
Banks
Treasury favors public
sale of PKO BP shares
MARCH 28 – APRIL 3, 2011 IINNDDUUSSTTRRYY NNEEWWSS www.wbj.pl 5
The software producerwants to be Europe’ssecond-biggestsoftware provider
Software producer AssecoPoland earned a z∏.415 millionnet profit on sales revenues ofz∏.3.24 billion in 2010. Theresults were up 11 and six per-cent y/y, respectively.
The company has boldgrowth aspirations – CEOAdam Góral told Parkiet lastweek that Asseco aims tobecome the second-largestsoftware provider in Europe,just behind Germany’s SAP.
Its strategy calls for growththrough M&A transactions.Asseco purchased Israeligroup Formula Systems for$145 million late last year andis already preparing to makeanother acquisition.
“In buying Formula Sys-tems, we proved that we can docomplex transactions,” AdamGóral told Parkiet. He contin-ued, “In the medium term, wewant to become the second-largest software producer inEurope, with strong expansionon the American market.”
Achieving this goal, accord-ing to Asseco’s strategy, willrequire annual revenues of €1
billion from the sale of its ownproducts and services. Basedon its 2010 sales revenues, thefirm is about halfway there.
According to WaldemarStachowiak, an analyst at bro-kerage Ipopema Securities, €1billion in sales is easily doable ifthe company devotes sufficientresources to aggressive expan-sion. He added, however, thatstrong acquisition activitymight not meet with theapproval of shareholders.
Mr Góral noted thatAsseco is engaged in non-binding talks regarding possi-ble acquisitions, and he notedthat it takes time to preparefor transactions.
Nevertheless, he admitted,“geographic expansion is a pri-ority. If we come across asmaller company with a prod-uct that would complementour offer, we won’t say no.”
Asseco Poland, listed onthe Warsaw Stock Exchange,had also been weighing a Nas-daq debut. However, due tothe amount of effort goinginto its acquisition strategyand shareholder concerns, thefirm does not expect to list onthe American bourse in theforeseeable future.
NNaattaalliiaa KKaazziikk
PKP Cargo privatizationon track for z∏.3 billionPolish State Railways PKP hasannounced a tender for a stakeof 50 percent plus one share inPKP Cargo, Europe’s second-largest rail freight operator.PKP Cargo is the leader on thePolish rail freight market, with a55.4 percent share of the sectoraccording to its own numbers.
Media estimates put thevalue of the company at z∏.3billion.
This will be “the largest pri-vatization project in the rail-way industry in Europe,” saidMaria Wasiak, chairman of theboard of PKP, in a statement.
Initial offers must be sub-mitted before May 12, afterwhich PKP will invite selectedcompanies to perform duediligence on PKP Cargo.
Officials close to PKP toldReuters that Deutsche Bahn,Europe’s largest rail freight car-rier, was unlikely to bid for PKPCargo, because EU competi-tion regulators would be loathto agree to such a tie-up.
PKP Cargo has hit a diffi-cult patch over the last fewyears, reporting losses of closeto z∏.200 million in 2008 and afurther z∏.498 million in lossesin 2009. Since 2008, the com-pany has been carrying out anintensive restructuring pro-gram, which included reducing
its then-44,000 strong work-force by 39 percent, mainlythrough a voluntary departureprogram.
It seems the company’sefforts have brought someresults, as it posted a €60 mil-lion net profit in 2010.
AAlliiccee TTrruuddeellllee
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BP
First in line for shares of PKO BP?
Software
Asseco sets sights on
rivaling SAP in Europe
Tauron stake
sold for
z∏.1.3 billion
The Polish government
has sold a 11.9% stake in
Tauron, the country’s
number two utility, last
week. The shares were
sold at z∏.6.15 apiece
through an accelerated
book-building process,
and the final transaction
amounted to nearly
z∏.1.3 billion. The price
was a 3.8% discount on
Tauron’s closing price on
last Monday, prior to the
launch of book building.
The deal signaled the end
of the company’s
privatization process. The
Treasury has retained a
30% stake in the
company.
Ferro to buy
Czech peer
Novaservis Ferro, one of Poland’s
largest bathroom and
heating appliance firms,
has signed a contract to
purchase a 100% stake in
Novaservis, one of the
Czech Republic’s leading
bathroom accessories
companies. The takeover
will cost Ferro CZK1.17
billion, equivalent to
z∏.191 million. ●
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PKP Cargo is estimated to be worth z∏.3 billion
MARCH 28 – APRIL 3, 2011BBUUSSIINNEESSSS EENNVVIIRROONNMMEENNTT6 www.wbj.pl
Pension reform
Pension debate underwhelmsNo new arguments inthe debate overpension reform, butplenty of minorcontroversy
A televised debate held lastweek between current FinanceMinister Jacek Rostowski andLeszek Balcerowicz, a formerfinance minister and formerhead of the National Bank ofPoland, was supposed to helpPoles understand the govern-ment’s planned changes to theopen pension fund (OFE) sys-tem, but offered nothing newin terms of substance.
The debate lacked struc-ture, and its participants usedcomplicated economic termi-nology that likely confusedmany of the three millionviewers who watched. In theend, the two economists large-ly repeated the same argu-ments they had been makingsince the government pro-posed the changes last year.
The government plans toreduce workers’ monthly wagecontributions to private pen-sion funds from 7.3 to 2.3 per-cent, transferring the differ-ence to the state-controlledsocial security fund, ZUS. Thegovernment wants to avoidborrowing up to z∏.190 billionby 2020 in order to cover cur-
rent pension obligations. Itargues that the changes willhelp it improve its balancesheet while giving greatersecurity to future pensions.
In the debate Mr Balcerow-icz maintained that marketsolutions and transparency arethe only guarantors of higherpensions. Mr Rostowski coun-tered that investing in deficitreduction is a good investmentfor future retirees.
‘Leszkugate’But while observers agree thedebate offered no new infor-mation, the odd decorum ofthe participants certainlyattracted attention. Mr Ros-towski continually referred to
Mr Balcerowicz as “Leszku,”the familiar form of the for-mer finance minister’s firstname. Mr Balcerowicz, on theother hand, referred to MrRostowski as “Mr Minister.”The odd situation has sincebeen dubbed “Leszkugate.”
The next day, Mr Balcerow-icz complained that Mr Ros-towski had broken an agree-ment by which they wouldaddress each other formally. MrRostowski denied any suchagreement had been brokered.
Mr Rostowski was an advi-sor to Mr Balcerowicz whenhe was finance minister in theearly 1990s, and also while MrBalcerowicz was the head ofthe NBP. RReemmii AAddeekkooyyaa
Innovation
LLoonngg--tteerrmm uunncceerrttaaiinnttyyA gap in innovationand a loomingdemographic crisiscould stifle Poland’seconomy
Poland needs to work harder,especially when it comes toinnovation and employment, ifit wants to maintain high GDPgrowth and thereby catch upwith its European peers,according to a report by theWorld Bank.
“Poland weathered therecent crisis very well, butthere is uncertainty aboutwhether it will be able toreturn to high growth rates,”said Marcin Piatkowski, a sen-ior economist at the WorldBank and one of the authorsof the report.
The World Bank arguesthat failure to raise employ-ment levels, improve skills andincrease technology absorp-tion could cause a potentialdecline in GDP growth of onepercentage point per year by2012.
Polish public spending onR&D is not only low (a mere0.6 percent of GDP), but alsoinefficient, according to theWorld Bank.
“One solution to improvethis is to complete the reformof R&D institutes, includingenabling insider privatizationand giving financial incentivesfor applied research deliveredto the enterprise sector,” saidNatasha Kapil, an innovationspecialist at the World Bankand a member of the team thatprepared the report.
The report also warns thatdue to a shrinking labor forceand an aging population,Poland’s demographic depend-ency ratio (the ratio of popula-tion over 65 to people between
16 and 64) will double in thenext 25 years from about 30percent to 60 percent.
The World Bank estimatesthat if older Poles, and especial-ly women, were as professional-ly active as they are in Ger-many, Poland’s GDP would beup to six percent higher.
Given that women alsohave a greater life expectancythan men, maintaining a lowerretirement age for women willbecome increasingly difficultto argue for, said Nina Arn-hold, head of the team thatprepared the report. AATT
GD
P gr
owth
rate
, in
%
2010 2038 2066 2094 2122 2150
2
3
3.5
4
4.5
5 2028
2031
2035
2041
2051
2132
Playing catch-up
Dates when Poland could achieve an income level on par with
the EU15, and average GDP growth rate necessary to do so
Source: World Bank
Finance Minister Rostowski’s informality caused a stir
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MARCH 28 – APRIL 3, 2011 LLIISSTTEEDD FFIIRRMMSS www.wbj.pl 7
Contact: Miros∏aw Stefanik
Legal News
Bank books not official documentsIn its judgement of March 15, 2011, theConstitutional Tribunal found unconstitu-tional the provisions of the Act on BankingLaw which give the same legal status toexcerpts taken from banks’ accountingbooks as they do to official documents.This is because the former affect con-sumers’ rights in court proceedings.
The provisions in question forced theconsumer to prove that he/she was not indebt to a bank rather than placing the bur-den of proof on the bank. In the opinion ofthe Tribunal, banks’ privileged position inthis regard is unjustified and in breach ofthe rule of equal status of parties in pro-ceedings as well as of the constitutionalrule of social justice.
The judgement may make it somewhatmore difficult for banks to pursue claimsagainst consumers.
Multi-million z∏oty penalty for PolkomtelIn the opinion of the president of theOffice of Competition and Consumer Pro-tection (UOKiK), at the end of 2009Polkomtel (operator of the Plus mobilephone network) made it impossible for theoffice to effectively conduct an inspection.Specifically, the company did not releasedata, it delayed inspectors and provided
only partial documentation, chosen at itsdiscretion.
As a result, the president of UOKiK hasimposed a financial penalty of over z∏.130million on Polkomtel for its lack of cooper-ation. The decision is not binding. In apress release published on its website,Polkomtel declared that the decision wasgroundless, stating that the firm had coop-erated fully with UOKiK during the inspec-tion. The mobile telecom plans to appealto the Court of Competition and Con-sumer Protection.
Wage subsidies made easierThe Act of October 29, 2010, has justcome into force. This legislation amendsthe Act on Mitigating the Consequencesof Economic Crisis for Employees andEntrepreneurs and is designed to facilitateentrepreneurs’ access to wage subsidies.
An enterprise which desires to obtainsuch aid will have to prove a fall in its busi-ness turnover of at least 15 percent duringany consecutive three-month period afterJuly 1, 2008. The aid under these rules willbe paid only after the European Commis-sion issues an opinion that such support iscompliant with the rules of the commonmarket.
Prior to the amendment, a fall inturnover of least 25 percent needed to beproven.
BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE
Energy
AAnnaallyyssttss uunniimmpprreesssseeddwwiitthh PPGGEE’’ss 22001100 rreessuullttssThe power provider’sannual results werebolstered by one-offs
PGE, Poland’s largest utility,recorded a consolidated netprofit of z∏.3.63 billion in 2010,down z∏.0.71 billion from 2009.Consolidated sales revenuesamounted to z∏.20.47 billion,marking a z∏.1.15 billion dropfrom 2009.
The results were roughly inline with market expectations,although some analysts foundthem dissatisfying
“The results disappoint,”Kamil Kliszcz, an analyst at bro-kerage DI BRE, stated flatly.
“They are in line with expec-tations, but the structure of theresults is worse. There was arelease of the balance reservesand, without the support ofthose one-time factors, theresults would have been around15 percent worse than our esti-mates on the operational level,”Mr Kliszcz explained.
The company attributed itsweaker sales revenues to com-pensation for the termination oflong-term power purchaseagreements (PPAs), which
dropped by 78 percent y/y. “As we expected, excluding
the impact of PPA compensa-tion, our consolidated 2010financial results are a little bet-ter than those achieved in2009,” Tomasz Zadroga, presi-dent of PGE, said in a state-ment.
Evaluating the 2010 finan-cial results, Mr Zadroga said,“With respect to the financialresults, 2010 was a year of stabi-lization, in which we managedto prepare the Group for theexpected growth in subsequentperiods.”
PGE also revealed plans torestart the sale of its telecomunit, Exatel. It will take a moreopen approach than during itsprevious attempt, called off inJanuary, the firm’s presidentannounced last week. Theprocess will start after the sale ofPolkomtel – the mobile phoneservices operator in which PGEholds a minority stake – which isexpected in the second quarter,Mr Zadroga added. PGE can-celed the previous sale processof Exatel because it received nobinding offers.
NNaattaalliiaa KKaazziikk
Fuel production
PPGGNNiiGG sseeeess rreeccoorrddpprrooffiitt,, ppllaannss aaccqquuiissiittiioonnssPoland’s natural gasleader had a good2010 and plans to useits earnings onacquisitions
Gas monopoly PGNiGrecorded a profit of z∏.2.46billion in 2010, z∏.1.22 billionhigher than in 2009.
The higher result was theproduct of a record increasein domestic demand for gas,a more efficient use of infra-structure and a release ofreserves.
Though the full-year prof-it was higher, the companyended Q4 2010 with a netprofit of z∏.1.118 billion, 15percent lower y/y, despite thefact that its quarterly rev-enues increased by 17 per-cent to z∏.6.63 billion.
Part of the profit generat-ed in 2010 has been set asidefor three potential acquisi-tions in 2011: Swedish utilityVattenfall’s Polish assets,Warsaw’s heating-networkoperator SPEC, and state-owned hydropower plantZEW Nidzica.
In a report published lastweek, PGNiG valued Vatten-fall’s Polish assets at betweenz∏.2.8-3.2 billion, SPEC at upto z∏.1 billion, and Nidzica atz∏.300-400 million. Thatwould give it as z∏.4.6 billionin acquisition expendituresfor this year.
The company has saidthat investment in 2011would form its largest capitalexpenditure in the 2011-2020period.
This year, analysts don’texpect the gas firm to post
such high numbers. In 2011PGNiG will likely incur high-er costs in comparison to lastyear, because of the risingprice of oil. It also has littlechance of negotiating a bet-ter price with Russia’sGazprom.
The company’s board hasargued that customers shouldshare in the rising costsinvolved in the import of thecommodity. PGNiG, whichfailed to secure permission toraise gas prices from April 1,2011, is preparing to lodgeanother motion to this effectfor the period starting onJune 1.
The previous propositionwould have seen prices riseby five percent, while the newproposal is said to include ahigher increase.
NNKK,, AATT
zł.bln
5
10
15
20
25
30
2010200920082007
Net profit Sales revenues
Electric results
PGE’s net profit and sales revenues (in z∏. billions), 2007-2010
Source: PGE
Warsaw Stock Exchange
WWSSEE nneett pprrooffiitt ddiissaappppooiinnttss
Revenues are up,however, and manyconstituent firms plandividends
The Warsaw Stock Exchangebooked a net profit of z∏.94.8million for full year 2010,marking a 5.8 percent dropfrom its 2009 figure. The aver-age forecast among analystspolled by Parkiet, meanwhile,amounted to z∏.97.5 (€23.7)million.
“The financial results ofthe Warsaw Stock ExchangeGroup reflect the market con-ditions, macroeconomic situa-tion, current stage in theGroup’s strategic develop-ment and, in large part, theremarkable events of historicimportance to the growth ofthe WSE and the Polish capi-tal market ... the privatizationand IPO of the WSE, conclud-ed in November 2010,” thecompany said in a statement.
The bourse attributed thenet profit result to costs relat-ed to its privatization last yearand a dividend paid out onprofits from 2009 and earlieryears. Speaking during thepresentation of the results,Lidia Adamska, a member ofthe WSE’s board, noted thatthe total dividend hadamounted to almost z∏.600million.
Despite its disappointingnet profit figure, the boursesaw sales revenues rise toz∏.225.6 (€56.5) million, a 13percent y/y increase. Operat-ing profit amounted to z∏.91.8(€23) million and EBITDAstood at z∏.122.6 (€30.7) mil-lion, up 15.4 percent and 16.7percent y/y, respectively.
Unlike the WSE itself, alarge number of the bourse’sconstituent companies saw sig-nificant y/y net profit growth in2010 – a fact which will allowmany to pay out mammoth
dividends this year. Daily Rzeczpospolita
reported that firms listed onthe WSE could easily smashthe collective z∏.13.3 billiondividend payment record setin 2007. Indeed, experts con-tacted by the newspaper sayshareholders could receive atotal of z∏.16.5 billion thisyear.
This is very good news forthe Treasury. Although ongo-ing privatization efforts arereducing the state’s hold onWSE-listed companies, thestate budget could be bol-stered by more than z∏.3.9 bil-lion from dividend payoutsthis year.
Among firms controlled bythe Treasury, energy giantPGE plans the largest divi-dend. Some z∏.1.2 billion willflow to shareholders – z∏.607million of which will go intothe state budget.
NNaattaalliiaa KKaazziikk
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MARCH 28 – APRIL 3, 20118 www.wbj.pl IINNTTEERRVVIIEEWW
Sales, unem-
ployment up
Retail sales for February
showed an increase of
12% y/y, exceeding
market expectations of
around seven percent and
surpassing even
December’s especially
high figures.
Consumption was up in
spite of consumer
climate surveys, which
were generally negative.
Meanwhile the un-
employment rate rose to
an annual high of 13.2%.
The data reflects the
seasonal unemployment
curve, which is higher in
the winter months.
Inflation lower
than forecast
The main base inflation
rate, or inflation excluding
food and energy prices,
amounted to 1.7% in
February, as reported by
the National Bank of
Poland (NBP). This is less
than the 2.1% predicted by
analysts. The NBP also
reported that the base
inflation rate for January
was 1.6%, the same as in
December of last year. The
Polish Monetary Policy
Council’s official inflation
rate target at 2.5% +/- one
percentage point. ●
The Polish justice system
Kwiatkowski’s full-court press
Ewa Boniecka: Many Polesare unsatisfied by the waythe Polish judicial systemfunctions, and the length ofcourt procedures is a com-mon cause of complaintslodged with the EuropeanCourt of Human Rights inStrasbourg. What is yourministry doing to improvethe situation?Krzysztof Kwiatkowski: I amfully aware that the Polishjudicial system needs toundergo changes and myministry is undertaking them.Change is especially neededgiven the enormous growthin the number of cases filedwith our common courts.
Between 2000 and 2010the number of cases lodgedwith the common courts rosefrom 9.5 million to over 12million. Our justice systemcannot cope efficiently withsuch an enormous number ofcases, so we are undertakingvarious measures to reformit.
What’s behind the growth incourt cases?
Poles put great confidence inindependent courts in orderto settle disputes. They resortmuch less often than othernations to alternative meansof resolving legal problems,like arbitration and counsel-ing with lawyers, which couldresult in a settlement beforethe case gets to court.
And I would say – halfjokingly – that maybe wehave a tendency in ournational temperament to goto court even with minor dis-putes between neighbors.
The length of court casesisn’t the only reason Polesturn to the Court in Stras-bourg...The Court in Strasbourg isparticularly concerned withcomplaints in two areas: first-ly, the conditions of peopleheld in prisons; and secondly,the abuse of temporarydetention orders. And inboth cases the situation inPoland has radicallyimproved.
For the first time in yearswe have increased the num-
ber of places in prisons. Thisis the result of certain invest-ments and other measuresleading to a reduction ofovercrowded conditions inthese institutions.
The number of temporarydetention orders – and I amtalking about cases involving
the unjustified use of suchmeasures – has dropped sig-nificantly. This has beenmade possible because wehave changed the legislativeregulations.
In the last two years wehave developed a large pro-gram for the rehabilitation of
prisoners by organizing pub-lic work for them outsideprison grounds. The cost ofthese activities are coveredby the State Treasury, andthe program is bringing verygood results for the detaineesand is useful for society.
We have also introduced a
Polish Justice Minister Krzysztof Kwiatkowskitalks with WBJ about the state of the justicesystem and his plans to rebalance its scales
A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce
The 2011 edition of bookof lists is now available!
• Find key information about the dominant players in the market • Expand your portfolio of contacts• See who’s on top of your sector
To order:Please contact us at +48 22 639 85 68 or [email protected]
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Mr Kwiatkowski wants to make “fundamental changes” to the court system
MARCH 28 – APRIL 3, 2011 IINNTTEERRVVIIEEWW www.wbj.pl 9
Wage hikes
expected
The government
estimates that wages will
rise on average by 3.7%
this year. However,
economists and
employers say the
increase may be as high
as five or even six
percent. Such dynamic
growth will result from
the expected economic
upturn, the opening of the
German labor market,
and rising inflation.
Card payments
expensive
When customers make a
purchase with a payment
card, Polish businesses
pay up to 1.6% of the
transaction value to
banks and payment
organizations. These so-
called interchange rates
are the highest in the EU,
according to research
conducted by Dziennik –
Gazeta Prawna. In the
EU, rates are generally
one percent or lower,
according to Andrzej
Maria Faliƒski, head of
the Polish Organization
for Trade and Distribution.
Wars for sale
Shares of Wars, a
company providing
catering on trains
operated by PKP Intercity,
will go on sale on April
20, the Treasury has
announced. The state
wants to sell shares
amounting to 42% of the
company’s capital. The
asking price for the
company is z∏.11.7
million and the required
security deposit has been
set at z∏.1 million. The
Treasury now has a 49%
stake in Wars. This is the
latest attempt to sell
Wars’ shares, after no
investors showed interest
on March 8.
TP to sell
Emitel for
z∏.1.7 billionPolish telecoms provider
TP Group has struck a
deal to sell radio and TV
broadcast infrastructure
operator TP Emitel for
z∏.1.7 billion to Montagu
Private Equity,
Rzeczpospolita reports.
So far, the two sides have
come to a preliminary
agreement. TP expects
the sale of the subsidiary
to boost its 2011 gross
profits by some z∏.1.2
billion. TP Group says the
sale is part of a strategy
to sell off assets not
connected to its primary
activity, Rzeczpospolita
writes. ●
system for carrying out sen-tences under electronicsupervision, via the “elec-tronic bracelet.” This is newin Poland and technicalimplementation of the systemis just getting under way, soonly around 1,000 prisonersare serving sentences underthe system right now. But weintend to expand it and toimplement it nationwidefrom January 2012.
And what are you doing toimprove the courts them-selves?We have already taken someorganizational and technicalsteps to improve the func-tioning of the commoncourts.
Since January2010, Polandhas been oneof a fewcountries inEurope tohave an “elec-tronic court”system. Inother words,in certainc a s e sinvolvingfinancialclaims,a citi-z e nc a n
file amotion to the court onlineand the court transmits itsverdict the same way. And, inorder to encourage citizensto use the e-court option,court fees in those cases arethree to four times lowerthan for the traditional route.
Last year we set up a landregister to be displayedonline. It is very convenientfor citizens and thousands ofPoles are making use of it.This year we are installing asystem to record court hear-ings in an audio format whichwill eliminate troublesomeand costly on-paper registra-tion. After choosing whichfirm will install the technicalequipment, this method willbe introduced in the firstcourts by the end of this year.
In Spain, where such asystem has been introduced,it has shortened the length ofcourt hearings by about athird.
Why weren’t such improve-ments introduced earlier?Well, I have been serving asjustice minister for 14months and many of my col-leagues say that we have car-ried out a technological revo-lution in our courts duringthat time. Yet to improve ourjustice system we need to domore than just implement
modern technological meas-ures, we also need to makefundamental changes to theway our courts function.
We have presented a billto parliament on the reformof the common court system,which introduces – amongother things – a periodicassessment of judges’ work.At present the assessment ofthe courts’ work isconfined to anoverview of depart-ments, but now wewould assess thework of each judge.
We also want tointroduce profes-sional managementin the courts, so theposition of court directorwould be filled via an open
process. This wouldrelieve judges of the
burden of manage-ment work and
helpthem to
concentrate ontheir importantduties, based on thesacred principle ofjudicial independence.
I consider this billto be very impor-tant, because itwill createinstrumentsto assess eachjudge’s work,to be carried out by visitingjudges from higher courts,and it will help individualjudges with less experience toimprove their work. We have10,000 judges in Poland and adecisive majority of themperform their duties excel-lently, but there are alsosome who do not and thisreflects negatively on the jus-tice system.
Do Poland’s civil and crimi-nal laws need to be amend-ed, in your opinion?Yes, and we are alreadyintroducing some [amend-ments] as well as preparing adraft bill dealing with funda-mental changes to criminaland civil law.
One of the legislativechanges introduced last yearis that courts are obliged topay compensation when a cit-izen makes a legitimate claimabout a gross delay in his
case. I believe this will short-en the length of court pro-ceedings and reduce thenumber of complaints filedwith the Court in Strasbourg.
I have set up within myministry a new codificationcommission for criminal law,and the new commissionworks under the chairman-ship of prominent law profes-
sor Andrzej Zoll. The com-mission has already come up
with a proposalto extend theinstitution ofplea bar-g a i n i n g ,
recently
introduced in Poland, to seri-ous felonies.
The commission will alsopropose other changes toPolish criminal law, and Ihope that these will beincluded in the government’sdraft bill. We are also prepar-ing a draft bill to improvecivil law procedures and theexecution of civil law.
All together my ministry isworking on 10 bills involvingvarious domains of the jus-tice system, which needs tobe made more effective andresponsive to changes takingplace in Poland.
What about corruptionoffenses – what’s your role inthat area?As justice minister, a memberof government and a politi-cian, I obviously have nodirect role in fighting corrup-tion or any other crimes.Those matters are kept far
away from politics and arebased on strict laws. Thereare proper institutions to fightcorruption, such as the police,and in cases linked with stateinterests, special services maybe involved, including theCentral AnticorruptionBureau.
It is only when thosecrimes are identified that the
role of the prosecutorsbegins, and they turnthe cases over to thecourts. If someone isfound guilty by thecourt, he will be convict-ed and meted the prop-er punishment.
I have the deep con-viction that state organs
should decisively pursue cor-ruption offenses, yet shouldnot try to provoke people tocommit them. And unfortu-nately I have the impression– as many Poles do – thatsome operations conductedunder the previous govern-ment aimed not only to pur-sue corruption, but also tocause deliberate provo-
cation inthis area. I hope that the
era when some state institu-tions functioned this way isdefinitely behind us.
Parliament has bitterlydebated an amendment tothe law which governs theharmonization of nationaland supranational laws, withmany opposition MPsexpressing concern that thiscould open the way to thelegalization of same-sexmarriages in Poland. Whatis your take on the issue?That law – which has beenaccepted by parliament andis now awaiting the presi-dent’s signature – is very pre-cise on the question of mar-riage and includes provisionswhich state that a foreign lawcannot be applied in ourcountry if it will bring conse-quences contradicting theprinciples of law and order inPoland.
And Article 18 of our
constitution states that mar-riage is a union between aman and a woman. So thereis no possibility of legalizingsame-sex marriages inPoland.
The whole debate overthe amendment completelyomitted its crucial relevanceto private international law,which is important for Pol-ish entrepreneurs because itstates how disputes with for-eign businessmen are to beresolved in situations involv-ing operations in differentcountries.
So the act regulates notonly individual disputes, butfirst and foremost the ques-tion of economic litigation.And the regulations regard-ing private international lawwhich are currently in forcein our country were accept-ed in 1965, so they are com-pletely unsuitable to today’sPoland.
The government, despitestrong opposition from theLaw and Justice party,
pushed legislationthrough parliamentwhich separated theroles of justice minis-ter and attorney gen-
eral. How do you ratethe results?This fundamentally cha-nges the whole structureof our justice system. Inprevious years therewere long public de-bates about whetherthe position ofattorney generalwas exposed topolitical pres-sure if he wasalso the minis-ter of justice.Now, afterthe sepa-ration oft h o s ef u n c -tions,there
is not ashadow of doubt that
the attorney general, who isappointed for a five-year termby the president [the presentattorney general, AndrzejSeremet was appointed by latePresident Lech Kaczyƒski] isremoved from politics and isfully independent from every-body and everything in per-forming his duties. ...
Let’s imagine for amoment that there were nosuch separation and theinvestigation into the [April10, 2010] catastrophe inSmolensk was being super-vised by an attorney generalwho was also the justice min-ister. There would be enor-mous suspicion and accusa-tions that he was being politi-cally manipulated by govern-ment.
So I consider the separa-tion of the two roles as notonly beneficial for our justicesystem, but also as a meansstrengthening Poland’s dem-ocratic order. ●
SH
UT
TE
RS
TO
CK
“There is no possibility oflegalizing same-sex marriages
in Poland”
The project will include:• Made in Poland – A guide to Polish export• Mister and Junior of Exports, a competition to award Poland’s best exporting companies and export products – those which distinguish themselves by a high level of quality and innovation• A gala, on June 14th 2011, at which the awards will be given out
Warsaw Business Journal Group and the Polish Chamber of Commerce, under the patronage of the Economy Ministry, have undertaken a new initiative called the Polish Export Promotion Program, aimed at promoting Polish exporters and their products abroad. Through this project we will shine a spotlight on Poland's export market, as well as the companies and products that it comprises, and draw attention to their achievements.
The project will include:• Made in Poland – A guide to Polish export• Mister and Junior of Exports, a competition to award Poland’s best exporting companies and export products – those which distinguish themselves by a high level of quality and innovation• A gala, on June 14th 2011, at which the awards will be given out
To get more information about the project, please contactSales Director Agnieszka Brejwo at [email protected]
The entry form and competition rules are available on pages 79-82
MARCH 28 – APRIL 3, 2011 OOPPIINNIIOONN www.wbj.pl 11
Aside from the tragedy inSmolensk last year, thebiggest story in Poland
since its EU accession hasarguably been the country’sremarkable economic per-formance.
Despite its relative povertycompared to the EU15 andmuch greater structural diffi-culties than most of its neigh-bors, Poland, the refrain goes,was the only EU country tohave seen economic growthduring the crisis year of 2009.
But what if that wasn’texactly true? What if Poland
had been “cooking thebooks,” Greece-style, whilethe EU fretted about its manyother problems? What if itsaccount-keeping were simplyinept? In today’s environ-ment, with economies onEurope’s periphery succumb-ing to financial meltdown oneafter another, investors arehyper-sensitive to even a whiffof accounting misconduct.
Omissions and errorsThe fact that the NationalBank of Poland has found ananomaly in its balance of pay-ments sheet – amounting tosome €15 billion, or four per-cent of GDP – is thereforeextremely dangerous. Theanomaly has been growing inthe bank’s “omissions anderrors” section, and finallyreached such proportions thatthis month the central bankdelayed the release of current-account figures by a week as it
searched for explanations. The anomaly involves miss-
ing funds, not a surplus, andindicates that statisticians hadeither been overestimating theamount of investment pumpedinto the country or underesti-mating the amount it had beenimporting, with experts sus-pecting the latter. Indeed, pre-liminary investigations seem toindicate that most of the short-fall may have come fromunderestimating imports fromGermany.
If this turns out to be thecase, Danske Bank believes itcould lead to a revision ofPoland’s macroeconomic sta-tistics as far back as its entryinto the European Union in2004. It would certainly meanPoland’s economic growth hasnot been nearly as strong asinitially thought, casting doubton its miraculous performancein 2009.
It would also mean that
Poland’s budget deficit anddebt figures are higher thaninitially thought. Thus – evenwith the government’s ill-con-ceived pension “reform” plan– drastic budget cuts would beneeded to bring the deficitdown to three percent of GDPby 2012, as the EuropeanCommission is demanding.(The deficit was at eight per-cent of GDP in 2010 and isexpected to come in at some6.5 percent this year.)
More troublingly, it wouldlikely mean that Poland hasalready crossed the 55 percentdebt-to-GDP ratio threshold,meaning legally requiredspending curbs would have tobe implemented. There issome debate as to how muchthese would actually hurt ordi-nary Poles – many of the meas-ures required by the law havealready been implemented toa certain degree by the govern-ment. Nevertheless, it would
certainly prove an embarrass-ment and give the ruling CivicPlatform a huge, indefensibleweakness going into thisautumn’s parliamentary elec-tions. The party of fiscalresponsibility would be thefirst in Poland’s history to trig-ger measures meant to con-strain fiscal irresponsibility.
‘We told you so’That’s bad news for the gov-ernment, and likely bad newsfor the business community,which, for lack of a betteralternative, would have likedto have seen Civic Platformstrengthen its hold on powerto push through significanteconomic reform. Minoritycoalition partner the PolishPeople’s Party has held CivicPlatform back from certainreforms, such as dismantlingKRUS, the alternative pen-sion system for farmers.
Civic Platform has been
timid in its reform efforts, but atleast it has made someattempts. Above all, it has gov-erned competently. The samecannot be said for some ofPoland’s previous governments.
It is therefore difficult toresist a “we told you so” here,as this newspaper has for yearsbeen arguing that the CivicPlatform-led governmentmust be bold in enacting eco-nomic reform. Now it may beforced to implement thesereforms as a result of Polishlaw and, to add insult to injury,it may have to work hard toconvince jittery and incredu-lous markets that Poland is notthe next Portugal.
Poland has come far to dis-tinguish itself from its neigh-bors as a safe haven for invest-ment. It would be a shame tosee that thrown away as aresult of some shoddyaccounting and the cowardiceof reform-shy politicians. ●
“Poland’s budgetdeficit and debtfigures could behigher than initiallythought”
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Lies, damn lies and statistics
Unless otherwise noted, the opinions here are those of Warsaw Business Journal.Readers’ comments, opinions and letters should be sent to [email protected]. Please include a nameand contact information and clearly indicate if they are to be considered for publication.
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REAL ESTATE EDITOR
ADAM ZDRODOWSKI([email protected])
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REMI ADEKOYA([email protected])
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ALICE TRUDELLE([email protected])
CONTRIBUTORS
EWA BONIECKAANTHONY CASEY
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INTERNS
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PRODUCTION MANAGERPIOTR WYSKOK
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MARKETING &SALES
AGNIESZKA BREJWO MARKETING &SALES DIRECTOR([email protected])
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MANAGING DIRECTOR MONIKA STAWICKA
Iam jealous of those peoplewho can discuss the subjectof military intervention in
Libya without evincing a shadeof doubt. “In Libya, the civilianpopulation, which is demanding
nothing more than the right tochoose their own destiny, is inmortal danger” (NicolasSarkozy), “the people of Libyamust be protected” (BarackObama) and “the [UN] resolu-tion is defective and flawed …
It resembles medieval calls forcrusades” (Vladimir Putin).
Meanwhile, in Poland,Professor Roman Kuêniar,an advisor to PresidentKomorowski, was less equiv-ocal in his assessment of theinternational military in-volvement in Libya. But hehit the nail on the head: “Theaims of the states participat-ing in the operation are notknown, nor is it known howthis will turn out.”
Selective humanismThe intervention in Libya hasshown that the “protection ofthe people” is rather selective-ly meted out. There are manycountries in the world whoseleaders are decidedly cruelerto their citizens than ColonelGaddafi, but the repressed cit-izens of North Korea or Myan-mar cannot count on “the rightto choose their own destiny.”
Even more disconcertingis the fact that the militarycoalition has taken action notin defense of the Libyan peo-ple, who are deeply divided,but in defense of the armedinsurgents. Concrete proofthat Gaddafi’s supportershave murdered unarmedwomen and children is hardto come by.
It should also be remem-bered that the very leaderswho are today condemningGaddafi were good friendswith him not long ago. In2007, Gaddafi pitched hisBedouin tent for five daysnear the Louvre in Paris andthen went on to stay in Spainand in Italy. Just one yearago Italian Prime MinisterSilvio Berlusconi effusivelykissed Gaddafi’s hand at theArab League summit.
Who, then, is the “mad-man?”
An Odyssey indeedThe only thing that I candescribe as unarguable in thismilitary operation is its name:Odyssey Dawn. The original“Odyssey,” Homer’s epicpoem, takes place over a peri-od of 20 years and it is not clearuntil the very end if the herowill finally make it back to hishome port.
The Libyan version of theepic has barely gotten started,but the fates of its central char-acters are equally unclear.What comes next?
The actors themselveshave little idea. However, theexperience of other militaryinterventions conducted inrecent years shows that noneof these odysseys have endedsatisfactorily.
Since the 1991 war andsubsequent internationalintervention, Bosnia andHerzegovina has failed to
develop as a fully democratic,peaceful or affluent state. Theoperations in Kosovo weresuccessful to a degree, creat-ing a puppet mini state besetby corruption and clan war-fare. And, the internationalcommunity has failed toeither reunify Cyprus or tooffer a permanent solution toits civil conflict.
It is worth adding at thispoint that all of these countriesare much smaller than Libyaand have significantly more incommon with Europe’s tradi-tions and history.
A satisfactory end?Odysseus was in a better situ-ation, because at least heknew what he wanted andwhat he was aiming for. Themany actors in the Libyanepic, meanwhile, all seem tohave different goals. And westill have little idea who
would sit on the rebels’ sideof the table if peace talkswere to be held, how manythere would be and whatviews they would hold.
Even a brilliant storytellerlike Homer would be unableto weave all the threads ofsuch a complicated story intoa comprehensible narrative,let alone one with a satisfacto-ry conclusion.
For now, the internationalcoalition engaged in Libyaknows at least one thing forsure: it has but begun the firstchapter of the saga. ●
Joanna Wóycicka is the formerhead of the foreign sections ofthe ˚ycie Warszawy and ˚ycienewspapers and the formerhead of the foreign departmentat the Polish Press Agency(PAP)[email protected]
The journey from Dawn to dusk
“The intervention inLibya has shown thatthe ‘protection of thepeople’ is ratherselectively metedout”
MARCH 28 – APRIL 3, 2011CCOOVVEERR SSTTOORRYY12
Bumar wins
India contractIt was reported that
Bumar, a Polish
consortium producing
military equipment, has
won a large contract in
India. Valued at more
than $300 million, this
would be the biggest
contract in the Polish
military industry for
years. India is looking to
buy a number of
armored recovery
vehicles. Bumar,
however, refused to
confirm the reports. In
April, Bumar also
intends to finalize a
different, $60 million
contract with Vietnam.
Poland
grounds last
TupolevFor the time being VIPs
will not be allowed to fly
on the government’s
remaining Tupolev TU-
154M aircraft. “I’ve
forbidden VIPs to fly on
the [Soviet-made] Polish
TU-154M,” Defense
Minister Bogdan Klich
told RMF FM, as quoted
by PAP. The decision was
made after Russia’s
Federal Air Transport
Agency suspended
aircraft of this type. Mr
Klich’s decision will
remain in force until it is
clear whether or not the
Russian agency’s
reservations also apply
to the plane owned by
Poland. The
government’s other TU-
154M was destroyed in
the Smolensk tragedy
last year.
LNG terminal
won’t hit
pricesThe State Treasury says it
will ensure that the costs
of constructing and
operating the LNG
terminal at ÂwinoujÊcie
will not be passed on to
gas customers,
Rzeczpospolita reports.
Previously authorities had
studied plans to introduce
a special levy to offset the
costs of construction at
the gas terminal. Similar
fixed-rate levies are
currently in place in other
countries, such as
Spain. ●
www.wbj.pl
National defense
Poland’s axis of allies
As Poland prepares to takeover the presidency of theEuropean Union in July, thePolish government has delib-erately shone the spotlight ondefense.
Speaking in early March atthe National Defense Univer-sity in Warsaw, Defense Minis-ter Bogdan Klich said priori-ties for the presidency wouldinclude the improvement ofmilitary capability andresource sharing, the develop-ment of the EU’s battlegroups(agreements between EUnations which enable a rapidreaction to security issues) andan increase of EU co-opera-tion with both NATO andeastern neighbors, such asRussia. He added that theintention of the Polish presi-dency was to focus debate onthese issues, and to “shape theCommon Security andDefense Policy [of the EU] inthe future.”
For Poland, both NATOand the Common Security andDefense Policy are key, so bal-ancing the two is of primeimportance – even if that bal-ance is skewed towards theformer.
Indeed, speaking on theeve of the NATO summit inLisbon last November, MrKlich told Polish Radio thatthe organization’s strategicdevelopment reflected “theinterests of Poland.” At thesummit, plans for a permanentUS Air Force unit and missiledefense system in Poland werediscussed, and final confirma-tion of these plans wasannounced in early Marchduring a meeting between theUS Secretary of State HillaryClinton and the Polish ForeignMinister Rados∏aw Sikorski inWashington.
At that meeting, Mr Sikors-ki stressed that both the EUand the US must play a role inensuring the security of
Europe and its neighbors. Hehighlighted Poland’s commit-ment to this partnership by cit-ing the US-Polish condemna-tion of rigged elections inBelarus.
For her part, Ms Clintonsaid the aim of the meeting inWashington was to “buildmutual security, expand pros-perity and promote democra-cy.” She added that both mili-tary and economic tiesbetween America and Polandwere growing, and stressed the“absolutely unbreakablefriendship and alliance be-tween the United States andPoland,” before thanking MrSikorski for Poland’s “verystrong” military contributionsin Afghanistan.
Shifting (in)securityDiplomatic niceties aside, thefact that Poland has any voiceat all on this issue marks a seachange. Not so long ago thecountry was deeply insecureabout its own independenceand concerned about its ownmilitary shortcomings.
According to MarcinZaborowski, director of thePolish Institute of Internation-al Affairs (PISM), Poland isnow “a security providerrather than a security con-sumer.” The country is also, henoted, committed to a numberof international operations.
NATO is both the “mainpillar of Poland’s security poli-cy,” according to the PolishMinistry of Defense, and theprimary framework for thecountry’s participation in inter-national military operations.
Indeed, Poland was calledupon to contribute to theinternational peacekeepingeffort in Kosovo only a fewmonths after it joined NATO.At present it has over 2,000soldiers in Afghanistan and isa participant in the NTM-Itraining mission in Iraq and in
Operation Active Endeavour,which monitors shipping in theMediterranean Sea. There is aNATO joint forces trainingcenter in Bydgoszcz.
The EU and its CommonSecurity and Defense Policy isalso important, but is generallyseen as subordinate to NATOmembership in terms ofnational security.
Poland is currently involvedin the creation of a “battle-group” unit in co-operationwith the Weimar Triangle(France and Germany) andVisegrad Group (CzechRepublic, Hungary and Slo-vakia) nations. A representa-tive of the Defense Ministry
noted that Poland is part of theEuropean Union Force Altheain Bosnia and Herzegovinaand that Polish military policecomprised the fourth-largestcontingent during EU opera-tions in the DemocraticRepublic of Congo.
“Poland takes its alliancesvery seriously,” stated PISM’sMarcin Zaborowski. “Wedemonstrate that they areimportant to us, that we sup-port the notion of a strongalliance, and we are provingourselves to be a strong ally.”
That said, Poland has madeit clear that it will not follow itsallies into Libya’s civil war. AsWBJ went to press, an interna-tional coalition was engaged inair strikes against the Gaddafiregime. NATO announced lastThursday that it would enforcea no-fly zone over Libya, buthad made no decision regard-ing a possible take over of themilitary command of Opera-tion Odyssey Dawn. Prime
Minister Tusk has said thatPoland will limit its role tologistical and humanitarianactivities.
Speaking to an assembly ofCivic Platform party membersin mid-March, he said: “I wantto make it clear that Polish sol-diers will take part in actionsto safeguard the interests ofPoland and of NATO’s securi-ty only when they are in imme-diate danger.”
Spending and sentimentWhen it comes to defensespending, Poland is willing toput its money where its mouthis. According to the DefenseMinistry, Poland’s defensebudget for 2011 amounts toz∏.27.5 (€6.84) billion. Of this,some z∏.1.22 billion is ear-marked for foreign operations.
Moreover, NATO figuresindicate that Polish defensespending rose by 30 percentbetween 2005 and 2010. Incomparison, Hungary’s spend-
Though it is now a ‘security provider ratherthan a security consumer,’ Poland remainsdependent on the EU and especially NATO forits defense
Anthony Casey
CO
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AT
O
NATO Secretary-General Anders Rasmussen was in Warsaw in March
“The fact that Polandhas any voice at allon this issue marks
a sea change”
Investing in Poland 2011 is available now!
To order a print copy or CD-ROM version of the publication, e-mail [email protected] or call +48 (22) 639 85 67 ext. 208
We have also launched a new website for investors!For investment news and analysis, visit: www.investinginpoland.wbj.plpresents
MARCH 28 – APRIL 3, 2011 CCOOVVEERR SSTTOORRYY www.wbj.pl 13
Paul Fogo is senior counsel with Miller Canfield,W. Babicki, A. Chelchowski & [email protected]
US troops in
Poland
Legal Eye
On December 11, 2009 thePolish and US governmentssigned a bilateral Status ofForces Agreement, com-monly referred to as a“SOFA,” in anticipation ofthe stationing of US militarypersonnel in Poland as partof the installation of an SM-3 missile defense system inthe country. The SOFAspells out the legal status ofUS military personnel, con-tractors and their depend-ents while stationed inPoland. In particular, theSOFA defines which countryhas jurisdiction over US per-sonnel with respect to allthings criminal. The Polishgovernment negotiated hardon this last point, and suc-ceeded in general to pre-serve its jurisdiction over USmilitary personnel, contrac-tors and their dependentsassigned to Poland. As withmost treaties, however, thedevil is in the details. Belowis a brief review of the mostsalient provisions.
Criminal & civil liabilityThe primary rule specifiedin the SOFA is that all USmilitary personnel, contrac-tors and their families aresubject to and governed byPolish law with respect tothe commission of a crimi-nal or civil offense. With thissaid, however, Art. 13 oblig-es the Polish government togive a “sympathetic” ear toany request from the USside to waive its jurisdictionon a case by case basis.
Moreover, the Polishgovernment is obliged tohonor such a request exceptin the cases of particularimportance to the Polishgovernment. The wordingleaves enough wiggle roomfor each side to assert juris-diction, but at least inrespect to egregious crimi-nal conduct the text of theSOFA preserves Polish juris-diction. Physical custody ofUS personnel facing trialwill normally be exercised bythe US military throughoutthe adjudication of the case,including the appealsprocess. US authorities are,however, obliged to enforceany conditions for detentionimposed by a Polish court.Once a final verdict of guiltyhas been entered by thecourt, the defendant will beremanded to the custody ofthe Polish authorities forimposition of the sentence.
US military basesIn recognition of the com-mon defense benefits to berealized by the location ofUS forces on Polish soil, thePolish government hasagreed to provide the USmilitary with land and facili-ties free of charge. More-over, the US is free to con-struct necessary improve-ments without having toabide by Poland’s construc-tion and permitting regula-tions. Instead, permission tobuild is granted by Poland’sDefense Ministry. The onlyexception to this broadexception regards the envi-ronment. Construction on aUS military base is still sub-ject to Poland’s environ-mental regulations.
Ownership of allimprovements made by theUS will transfer to the Pol-ish government if and whenthe US vacates the base.And finally, the policing of aUS military installation willrest with the US militaryitself.
Driver’s licensesThe issuance of Polish dri-ver’s licenses to US militarypersonnel, contractors andfamily members is a notableexception to the generalrule that Polish law governs.True, US personnel arerequired to obey Poland’straffic laws, but not neces-sarily to obtain a Polish dri-ver’s license. In lieu of a Polish driver’slicense, US military person-nel and contractors maydrive in Poland based upona US-issued driver’s licensewithout the need to obtainadditional permission. Fam-ily members of US militarypersonnel may also drivewithout a Polish driver’slicense; however, the rightcomes with three condi-tions: (i) valid US drivinglicense; (ii) proven knowl-edge of Poland’s traffic laws;and (iii) additional permis-sion to drive from US mili-tary.
TaxesUnlike criminal law, in thecase of taxes the Polish gov-ernment does not have juris-diction over US personnel.Income paid by the US gov-ernment to military person-nel, non-Polish contractorsand their dependents isexempt from taxation inPoland. ●
ing dropped by 6.2 percentover that period, whileFrance’s fell by 7.8 percent.
Among EU members ofNATO, only the UK, Greeceand France spent more ondefense as a percentage ofGDP than Poland in 2010.
“To compare with otherEU states, investment indefense and security is consid-erable,” said Mr Zaborowski.He noted that there is a widelyheld belief in Poland thatdefense spending should notnecessarily face the first orheaviest cuts in times of eco-nomic turmoil.
This sentiment is likelyrelated to the country’s darkhistory as a battleground forits neighbors. Although thethreat of military aggression isnow extremely remote, Polesare still keenly aware of histor-ical wrongs.
That said, Poland’s rela-tionship with Germany, anaggressor in the past, is todayquite strong. And it hasachieved a rocky rapproche-ment with Russia as well.
“Poland’s position geo-graphically is the same as ithas been for centuries,between Germany and Rus-sia. However, the geopoliticsare different,” Mr Zaborows-ki commented, stressing thatthe former nation haschanged greatly. It is, he stat-ed, “a fully democratic statewith a strong culture of paci-fism.”
To the east, Russia remainsmore of a concern. “We areaddressing difficult historicalquestions,” Mr Zaborowskisaid.
“It will take them longer tocome to terms with the end ofthe Cold War,” he added.“There is some doubt overrelations between Russia andthe West, but over the past twoyears we have observed amovement towards reciproca-tion, mainly in relationsbetween Russia and the EU,but also in other areas.”
Dependent on NATOThe first NATO SecretaryGeneral, Lord Ismay,famously stated the organiza-tion’s primary goal was tokeep “the Americans in, theRussians out and the Ger-mans down.” The positionmay have changed with thenew political climate, partic-ularly regarding Germanyand Russia – but America isstill the prime mover inNATO.
“That’s still very rele-vant,” Mr Zaborowski said.
“We are reliant on the US.NATO couldn’t possibly existwithout it.”
Nevertheless, a NATOofficial told WBJ that as wellas contributing troops inother actions, Poland playedan “important role” in issuesrelating to partnerships andrelations with Russia,Ukraine and Georgia, and tomatters such as missiledefense.
“Poland’s voice and inputare critical,” the NATO rep-resentative added. ●
In search of a “Polish Shield”
The development of the Pol-ish defense industry fallsunder the remit of the min-istries of the economy, nation-al defense and the Treasury. Itis guided by the Strategy ofConsolidation and Support ofthe Development of the Pol-ish Defense Industry, whichcame into force on August 31,2007.
The Strategy has seen thenation’s arms industry consol-idate around the BumarGroup, which today consistsof over 20 companies whichmanufacture and sell arms inthe domestic and internation-al markets.
According to Bumar’s te-
chnical advisers, Poland’s cur-rent air defense system –largely left over from thecommunist era – may beeffective in an attack by pilot-ed aircraft. More worryingwould be a situation involvingmissiles, drones and otherunmanned equipment.
To address those worries,Bumar has worked with theScientific-Industrial Centre ofProfessional Electronics(RADWAR), missile firmMBDA and the Telecommu-nications Research Institutein Warsaw (PIT) to developthe “Polish Shield” system.
This is a multi-layered,medium-to-long–range air
defense system. The first layerconsists of a detection and loca-tion station, a command center,and up to six launchers capableof firing eight ASTER 30 mis-siles. One unit of this systemcould protect up to 6,500square kilometers and targetthreats flying at an altitude ofup to 21 kilometers. The mis-siles, according to Bumar, havea speed of 1.4 km/s.
A second, short-rangelayer would bring MBDA’sMICA VL missiles into playwith Polish radar and com-mand systems, theoreticallyprotecting an area of 2,500square kilometers. These mis-siles could hit a target flying at
an altitude of up to nine kilo-meters, and fly at 750 meters-a-second after 2.5 seconds.
These first two layerswould be backed up by a veryshort-range system, consistingof artillery and artillery-mis-sile systems effective for tar-gets flying at altitudes of up tofour kilometers. Bumaralready makes a system calledKOBRA which serves a simi-lar purpose.
Whether this or anothersystem is finally installed inPoland, time is short. TheDefense Ministry said lastNovember that the currentsystem will be useless withinfive years. ●
0
1
2
3
4
5
6
United StatesNATOtotal
GreeceUKFrancePolandGermanySpain
*estimated
Armed for growth
Defense expenditures as a percentage of gross domestic
product (based on current prices), 2010*
Source: NATO
0
5,000
10,000
15,000
20,000
25,000
30,000
2010200920082007200620052000
*estimated
The bullet business
Polish defense expenditures (based on current prices,
in z∏oty billions, 2000, 2005-2010
Source: NATO
CO
UR
TE
SY O
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ON
Polish forces have been involved in training Afghani security forces
MARCH 28 – APRIL 3, 2011MMAARRKKEETTSS14 www.wbj.pl
SO
UR
CE
: W
SE
PLN-EUR
4.06
15
4.04
77
4
.034
5
4
.035
3
4.0
270
4.02
40
18.0
3
21.0
3
22.0
3
23.0
3
24.0
3
25.0
34.02
4.10 PLN-USD
18.0
3
21.0
3
22.0
3
23.0
3
24.0
3
25.0
3
2
.885
0
2.8
588
2.83
58
2.8
446
2.8
516
2.84
25
2.5
3.0 PLN-GBP
18.0
3
21.0
3
22.0
3
23.0
3
24.0
3
25.0
3
4
.640
7
4
.642
7
4
.643
5
4
.636
7
4.
6097
4.56
99
4
5 PLN-CHF
3.1
933
3.
1567
3.1
424
3
.159
9
3.1
311
3.10
73
18.0
3
21.0
3
22.0
3
23.0
3
24.0
3
25.0
33.0
3.5 PLN-RUB
18.0
3
21.0
3
22.0
3
23.0
3
24.0
3
25.0
3
0.1
014
0
.100
9
0
.100
7
0
.100
7
0.1
005
0.10
05
0.100
0.102 PLN-100JPY
18.0
3
21.0
3
22.0
3
23.0
3
24.0
3
25.0
3
3.5
414
3.5
193
3.49
66
3.5
164
3.5
218
3.49
59
3.0
3.5
4.0
currency rates
Portugalignored
Stocks report
Polish stocks went up lastweek, as key global marketsregained lost ground. Theblue-chip WIG20 and themain WIG both inched up byover one percent. But evenmore important this timewas that small and mediumcaps also grew. Stocks tradedsideways on most days,although a Friday surgecaused both the WIG andthe WIG20 to nearly reachtheir multi-month highs.
Investors in Warsaw total-ly ignored the situation inPortugal and rushed to buystocks. Some macroeconom-ic data was revealed inPoland, with the most impor-tant showing that retail salesrose by 12 percent – wellabove expectations. More-over, CPI inflation rose byless than expected, whichwas of course positive newsfor stocks.
Raw materials firms andminers led the way, withKGHM contributing the mostby soaring six percent. Themetal miner’s performancewas linked to strong gains inmetals prices. Dividendexpectations also helped to liftthe stock. Telecom TP wasalso strong, as investors await-ed a big dividend payout ofz∏.1.5 per share.
Food companies and con-struction stocks, however,ended in the red. Kernel,which weights heavily on thefood index, retreated aftersome earlier gains. PBGstock lost eight percent afterGoldman Sachs gave it alower evaluation last week.This had a negative impacton the construction index.
Generally it was a goodweek for investors and itlooks like more gains will beseen in the near future. ●
The calm afterthe storm
Currency report
Last week the major curren-cy pairs were not governedby as much volatility as theyhad been in the previousweek. The market as a wholeproved calmer regardingevents in Japan and Libya.
Unsurprisingly, the Japa-nese yen showed the mostvolatility. After the interven-tion of G7 countries, itmoved sideways in a verynarrow range against majorcurrencies. However, volatil-ity over the whole week waslower than single-day volatil-ity in the previous week.
Meanwhile, it looks likethe euro’s long-term appreci-ation against the US dollar,the British pound and mostother currencies has finallycome to an end. Technicalanalysis shows that the resist-ance at the $1.4280 level islikely to mean the end ofgrowth on the EUR/USD.
Moreover the euro seemsrather overbought.
Interest rate marketsexpect three euro zone ratehikes this year and a total ofsix over the course of thenext two years. A situation inwhich the European CentralBank decides to be evenmore hawkish is extremelyunlikely. On the other hand,it’s quite possible that the USFederal Reserve couldchange its radically loosepolicy, a move that wouldsupport the dollar.
Growing problems con-cerning Portugal may alsoweaken the euro. The col-lapse of that country’s gov-ernment last week and alack of evidence to suggest itis overcoming its financialproblems could soon resultin other European countriesbeing forced to provide itwith financial aid. ●
Tomasz Jerzyk, technical analyst DM BZ WBK SA
Kamil Cisowski, X-Trade BrokersDom Maklerski SA
SO
UR
CE
: N
BP
Major indices
Top 5 Closing % change (week) 52-week high 52-week lowPOLREST 0.65 38.30 1.06 0.24ZETKAMA 17.94 23.30 17.94 11.60HELIO 16.75 15.92 26.25 13.74RUBICON 1.22 15.09 1.25 0.74IMPEL 37.90 14.88 37.90 25.00
WIG 48,168.95 (March 24 closure)
Change for the week: 0.92% 52-week high: 48,421.80
Change year to March 24: 1.09% 52-week low: 39,109.37
Top 5 Closing % change (week) 52-week high 52-week lowKGHM 183.90 4.61 188.90 88.20GTC 20.80 4.00 25.00 19.58ASSECOPOL 52.40 2.85 59.80 49.02CEZ 140.70 2.70 148.80 118.70TPSA 17.05 2.46 18.65 14.10
Bottom 5 Closing % change (week) 52-week high 52-week lowMIDAS 1.77 -56.30 8.12 1.77RAINBOW 6.39 -11.25 9.39 6.07ONE2ONE 4.54 -9.92 11.15 4.54PRONOX 1.35 -8.78 2.32 0.5808OCTAVA 2.43 -7.95 2.71 1.81
Bottom 5 Closing % change (week) 52-week high 52-week lowPBG 183.70 -7.69 252.00 183.70POLIMEXMS 3.45 -4.17 5.29 3.33PGE 22.20 -3.56 23.97 19.70PEKAO 165.80 -1.25 196.50 153.00TAURONPE 6.22 -1.11 6.89 5.04
WIG20 2,781.98 (March 24 closure)
Change for the week: 0.89% 52-week high: 2,794.73
Change year to March 24: 0.99% 52-week low: 2,270.13
mWIG40 2,872.75 (March 24 closure)
Change for the week: 0.97% 52-week high: 2,904.35
Change year to March 24: 2.32% 52-week low: 2,361.69
sWIG80 12,668.93 (March 24 closure)
Change for the week: 0.99% 52-week high: 12,855.31
Change year to March 24: 3.43% 52-week low: 10,980.45
NewConnect 58.29 (March 24 closure)
Change for the week: -0.78% 52-week high: 64.04
Change year to March 24: -8.07% 52-week low: 54.58
WIG-Banki 6,916.63 (March 24 closure)
Change for the week: 0.93% 52-week high: 7,262.73
Change year to March 24: -0.65% 52-week low: 5,751.39
DJIA12,164.54 (March 24 close)
3.31 (for the week)
CHANGE: 5.07%
(year to March 24)
52-week high: 12,418.00
52-week low: 9,596.04
NASDAQ2,734.64 (March 24 close)
3.74 (for the week)
CHANGE: 2.17%
(year to March 24)
52-week high: 2,840.51
52-week low: 2,061.14
S&P5001,309.51 (March 24 close)
2.81 (for the week)
CHANGE: 4.13%
(year to March 24)
52-week high: 1,344.07
52-week low: 1,010.91
FTSE1005,885.21 (March 24 close)
3.32 (for the week)
CHANGE: -0.25%
(year to March 24)
52-week high: 6,105.80
52-week low: 4,790.00
DAX6,939.89 (March 24 close)
4.25 (for the week)
CHANGE: -0.48%
(year to March 24)
52-week high: 7,441.82
52-week low: 5,607.68
NIKKEI2259,451.44 (March 24 close)
5.45% (for the week)
CHANGE: -8.70%
(year to March 24)
52-week high: 11,408.17
52-week low: 8,227.63
world stock indices
25.0
2
28.0
2
01.0
3
02.0
3
03.0
3
04.0
3
07.0
3
08.0
3
09.0
3
10.0
3
11.0
3
14.0
3
15.0
3
16.0
3
17.0
3
18.0
3
21.0
3
22.0
3
23.0
3
24.0
346,000
46,600
47,200
47,800
48,400
49,00025
.02
28.0
2
01.0
3
02.0
3
03.0
3
04.0
3
07.0
3
08.0
3
09.0
3
10.0
3
11.0
3
14.0
3
15.0
3
16.0
3
17.0
3
18.0
3
21.0
3
22.0
3
23.0
3
24.0
32,600
2,640
2,680
2,720
2,760
2,800
25.0
2
28.0
2
01.0
3
02.0
3
03.0
3
04.0
3
07.0
3
08.0
3
09.0
3
10.0
3
11.0
3
14.0
3
15.0
3
16.0
3
17.0
3
18.0
3
21.0
3
22.0
3
23.0
3
24.0
32,800
2,820
2,840
2,860
2,880
2,900
25.0
2
28.0
2
01.0
3
02.0
3
03.0
3
04.0
3
07.0
3
08.0
3
09.0
3
10.0
3
11.0
3
14.0
3
15.0
3
16.0
3
17.0
3
18.0
3
21.0
3
22.0
3
23.0
3
24.0
312,300
12,420
12,540
12,660
12,780
12,900
25.0
2
28.0
2
01.0
3
02.0
3
03.0
3
04.0
3
07.0
3
08.0
3
09.0
3
10.0
3
11.0
3
14.0
3
15.0
3
16.0
3
17.0
3
18.0
3
21.0
3
22.0
3
23.0
3
24.0
357.0
57.6
58.2
58.8
59.4
60.0
25.0
2
28.0
2
01.0
3
02.0
3
03.0
3
04.0
3
07.0
3
08.0
3
09.0
3
10.0
3
11.0
3
14.0
3
15.0
3
16.0
3
17.0
3
18.0
3
21.0
3
22.0
3
23.0
3
24.0
3
6,600
6,700
6,800
6,900
7,000
7,100
Other indices
LLOOKKAALLEE IIMMMMOOBBIILLIIAAW a r s a w B u s i n e s s J o u r n a l ’s w e e k l y s u p p l e m e n t o n r e a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t • MARCH 28 – APRIL 3, 2011, LI 16/12
Bia∏ystok
market
saturated
The retail market in
Bia∏ystok, the capital of
Podlaskie voivodship and
the largest urban center
in northeastern Poland,
is currently relatively
saturated and it will take
some time before
investors in the city are
able to secure tenants
for new projects,
according to Jones Lang
LaSalle. From
2007-2008, Bia∏ystok saw
a development boom
during which five
shopping centers totaling
118,000 sqm were
delivered. As a result,
the city now has the
second largest retail
space saturation ratio
among urban centers
with populations of
between
200,000-400,000,
following Cz´stochowa.
GTC reports
2010 growth
Developer Globe Trade
Centre had €169 million
in revenues and a net
profit of almost €29
million in 2010, compared
to over €156 million in
revenues and a net loss
of more than €139 million
a year earlier. The
company saw 30 percent
growth in rental income,
which was, however,
partially offset by lower
revenues from
residential sales. Net
profit from portfolio
revaluation amounted to
€43 million. ●
Single-family residences
EEcchhoo ttoouuttss RReezzyyddeennccjjee LLeeÊÊnneeThe project revisitsthe idea of “gardencities” in Poland
Developer Echo Investmenthas started the realization ofRezydencje LeÊne, a single-family residential project inWarsaw. Located on ul. Wóy-cickiego and ul. Dankowickiejin the capital’s Bielany district,the estate will comprise over30 homes sized from 300-700sqm.
Echo Investment is toutingthe development as a naturalheir to 19th century Britishurban planner EbenezerHoward’s “garden city” con-cept, which, in loose terms,aims to combine the benefitsof home-life in green areaswith work-life in the city cen-ter.
In Rezydencje LeÊne, thedeveloper is offering plots with
building permits and full infra-structure, including roads,pavement, lighting and con-
nections with utilities; thesewill have been provided by theend of Q1 2012. Buyers will
then be able to start construc-tion on houses which havebeen designed by StoMM
Architektura. Located in a wooded area,
the plots are sized from 1,509-2,210 sqm, with prices rangingfrom z∏.850-1,280 per sqm.
“They are competitivecompared to prices of plotsoffered in the M∏ociny area.Even more so if we take intoaccount the additional infra-structure which we offer to ourclients,” stated Sylwia Pajdo,manager of Echo Investment’ssales office in Warsaw.
Kielce-based Echo Invest-ment has already developed anumber of residential projectsin Warsaw, with its best knownrealizations including Mondri-an House, Osiedle Inflanckaand Babka Tower. The compa-ny is selling luxury apartmentsin its Klimt House scheme,located in the capital’sMokotów district.
AAddaamm ZZddrrooddoowwsskkii
Office
Ghelamco developing SynergyWork on new officecomplex to start inApril
Developer Ghelamco willlaunch construction on a newoffice project in Wroc∏aw inApril. The company’s SynergyBusiness Park complex willcomprise five buildings, rang-ing from five to 14 storeys inheight, with a total of approxi-mately 60,000 sqm of class-Aspace.
First to be developed willbe a 25,000 sqm buildingwhich is scheduled for com-pletion in H2 2012.
“Wroc∏aw is undoubtedlyone of the fastest developingcities in Poland. I am con-vinced that the Synergy Busi-ness Park project, which isbeing realized by Ghelamco inaccordance with the higheststandards, will meet theexpectations of even the most
demanding tenants and willcontribute to further develop-ment of Lower Silesia,” statedJaros∏aw Zagórski, businessand development director atGhelamco Poland.
Synergy Business Park willbe located between ul. Hor-baczewskiego and ul. NaOstatnim Groszu, near thecity’s international airport.The development, designedby Belgium’s Jaspers-Eyers &Partners, includes a seven-storey parking lot for morethan 700 cars.
Ghelamco has deliveredmore than 350,000 sqm ofoffice and warehouse spaceduring its 20 years in Poland.In Wroc∏aw, the company pre-viously realized the BemaPlaza office complex which,along with its residential com-ponent, Rezydencja Tumska,was completed in 2008.
AAddaamm ZZddrrooddoowwsskkii
Echo’s Rezydencje Leśne . . . . .15
Synergy Business Park . . . . . . .15
Military Property Agency . . . . .16
Property-related stocks . . . . . .16
Ilmet tower to fall? . . . . . . . . . .17
Mokotów Plaza lease . . . . . . . .17
PBG’s results . . . . . . . . . . . . . . . .18
CEE investment . . . . . . . . . . . . .18
Restitution concerns . . . . . . . .19
In this issue
1719
Poland has shelved its latest
property restitution law,
earning criticism
UBS is weighing the idea of
demolishing the Ilmet
building in Warsaw
CO
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The Rezydencje LeÊne scheme will comprise more than 30 single-family residences
To subscribe: e-mail [email protected] or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription
Warsaw Business Journal presents Real Estate weekly newsletter
• Know about the newest projects before they’re on the market• Keep up to date on the latest tenders and auctions• Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate
or
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TN
ER
OF
PR
OM
OT
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Synergy Business Park will deliver around 60,000 sqm of GLA
MARCH 28 – APRIL 3, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl
Security Closing % change 52-week 52-week % change Total Marketprice (week) low high (year) shares value
on Mar 24 (z∏.mln)
BUDIMEX 98.25 4.52 84.55 106.10 4.30 25,530,098 2,508.33
CELTIC 20.55 -2.14 17.43 60.55 N/A 34,068,252 700.10
DOMDEV 47.15 0.34 38.52 61.00 -13.33 24,560,222 1,158.01
ECHO 4.86 -1.02 3.95 5.40 9.46 420,000,000 2,041.20
ELBUDOWA 157.00 3.29 152.00 188.40 -9.77 4,747,608 745.37
ENERGOPLD 3.91 2.62 3.57 4.45 -10.53 70,972,001 277.50
ERBUD 41.00 1.74 40.00 61.00 -25.32 12,602,711 516.71
GANT 13.62 3.18 12.98 26.00 -42.41 20,499,953 279.21
GTC 20.80 4.00 19.58 25.00 -11.26 219,372,990 4,562.96
HBPOLSKA 2.55 -2.30 2.50 3.90 -28.77 210,558,445 536.92
JWCONSTR 14.24 2.08 13.50 18.69 5.48 54,073,280 770.00
LCCORP 1.56 0.00 1.41 1.73 -3.11 447,558,311 698.19
MARVIPOL 9.00 0.00 8.83 20.29 -51.97 36,923,400 332.31
MIRBUD 4.50 -0.44 2.71 4.75 55.17 75,000,000 337.50
MOSTALWAR 43.00 -4.44 43.00 77.00 -38.13 20,000,000 860.00
MOSTALZAB 2.76 -2.82 2.63 4.84 -39.61 149,130,538 411.60
ORCOGROUP 37.00 7.53 19.00 37.00 21.55 14,053,866 519.99
PBG 183.70 -7.69 183.70 252.00 -15.58 14,295,000 2,625.99
PLAZACNTR 4.19 10.26 3.70 6.39 -31.09 292,647,720 1,226.19
POLAQUA 16.50 -1.20 16.00 22.50 -15.38 27,500,100 453.75
POLIMEXMS 3.45 -4.17 3.33 5.29 -25.81 521,035,327 1,797.57
POLNORD 31.54 0.10 30.50 44.00 -18.06 22,242,031 701.51
RANKPROGR 10.84 0.00 9.59 10.96 N/A 37,145,050 402.65
ROBYG 1.97 6.49 1.70 1.97 N/A 257,390,000 507.06
RONSON 1.38 -2.82 1.36 2.10 -21.14 272,360,000 375.86
TRAKCJA 3.51 1.45 3.32 4.97 -19.68 160,105,480 561.97
ULMA 82.50 0.98 70.00 86.20 7.35 5,255,632 433.59
UNIBEP 8.00 0.00 7.30 10.30 -5.66 33,927,184 271.42
WARIMPEX 10.50 3.14 7.64 10.85 27.43 54,000,000 567.00
ZUE 13.78 -0.86 13.50 15.14 N/A 22,000,000 303.16
Property-related stocks
Osiedle
Sportowa
phase II
Developer W∏odarzewska
is expanding its Osiedle
Sportowa residential
project in Brwinów near
Warsaw. Construction will
launch in April on two new
buildings in the complex,
which will provide a total
of 38 units sized from
30.36-67.74 sqm.
Completion is scheduled
for June 2012.
Search for
hotel operator
Developer MOT has
appointed Cushman &
Wakefield as the
exclusive agent
responsible for the
selection of an operator
for its Rialto hotel project
in Wroc∏aw. The four-star
facility, which will be
located in the city’s
Ostrów Tumski historical
district, will offer 187
rooms as well as a
conference area able to
accommodate 600
people. MOT is best
known in Poland for its
five-star Rialto boutique
hotel, located at the
intersection of ul. Wilcza
and ul. Emilii Plater in
central Warsaw. ●
Military properties
FFiinnddiinngg ssuucccceessss wwiitthh WWeesstteerrnn ooppeennnneessssThe Military PropertyAgency is working tobecome more visibleand more investor-friendly
Krzysztof Michalski, presidentof the Military PropertyAgency (AMW), is an impos-ing figure. Tall, broad and stur-dy, Mr Michalski looks everybit the military man.
It comes as some surprisethen to learn that his back-ground is in boardroom, notbattlefield, clashes. His smileand friendly demeanor arebacked by experience hard-won during a career whichincludes stints in multination-als. Indeed, prior to joining theagency, Mr Michalski workedfor Coca-Cola and SC John-son, two firms that he saystaught him a lot about howbusiness is done in the West.
Over the last two years aspresident of the AMW, he hasbeen trying to bring the sameethic to the organization,which sells disused propertiesowned by the Polish military.
‘Be here or lose out’Part of that means bringing theAMW’s offer to MIPIM, theannual real estate mega-expo
held in Cannes, France, whichtook place in mid-March.
“You have to be active. Ifyou’re not here, you lose
out,” said Mr Michalski,adding that this year theagency had invested in astand at MIPIM for the firsttime, and that the effort hadalready borne fruit. Investorsthat had long been in contactwith the agency but rarelyhad time to meet were finallyable to sit down for seriousdiscussions. Even investorsbased in Warsaw had some-how never had time to talk,face-to-face, before attend-ing MIPIM 2011.
Not that the agency has onlyhad inquiries from Poland-based investors. “We’ve alsoseen interest from the US andall over Europe,” said MrMichalski, naming Germanyand Belgium as two Europeancountries from which potentialinvestors hailed.
Selling citadelsIt’s not hard to understandwhy the agency has investors’attention. It owns some highlyattractive property for invest-ment, 40 percent of which islocated within large cities, andmuch of which is already con-nected to basic utilities. Build-ings – 2,700 of them – stand onmuch of the 7,000 ha of landthe agency has on offer. Andamong those buildings is a par-ticularly impressive piece ofarchitecture – Modlin Citadel.
Construction of ModlinCitadel began with Napoleonin 1806 and it was greatlyexpanded by Russian forces inthe 19th century. The buildingis some 2.5 km long, making it,according to the AMW, thelongest building in Europe.
“Russian soldiers used to
ride horses inside it to getfrom one end to the other,”said Mr Michalski.
With its proximity to War-saw – it’s situated about 30 kmaway – and its unique historyand character, Modlin Citadelis particularly attractive for aconference center develop-ment, Mr Michalski said,something that Warsaw hasneeded for a long time. Hepointed out that Modlin Air-port, only three kilometersaway, is nearing completion. Itis scheduled to begin opera-tions in 2012.
Mr Michalski also empha-sized the variety and attrac-tiveness of his agency’s numer-ous other properties, mention-ing in particular the opportu-nity to build marinas on theHel Peninsula on the BalticSea, and office/hotel develop-ment opportunities on K´paMieszczaƒska, an island in themiddle of the Oder River inWroc∏aw. “This is a uniqueopportunity in Europe,”boomed Mr Michalski, toutingthat city’s well-educated work-force and its proximity to theGerman border.
But to fulfill its mission ofselling disused Polish militaryproperty, Mr Michalski knowsthat going to MIPIM once ayear isn’t enough. The AMWwill also be present at theInternational Property Show inDubai from May 10-12, and isconsidering a presence at ExpoReal in Munich in October.
Positives in the crisisAsked if the crisis had nega-tively affected the agency, MrMichalski responded thatthere had been an upside to itin the sense that it hadchanged investors’ attitudes.“The crisis has changed behav-ior in a positive way,” he said.“Investors now require morefrom sellers. Previously theywere more willing to take risks,they weren’t careful.”
Mr Michalski added thatbig pieces of land no longersell as well as they once did,and that the agency has had todivide up some of its largerplots in order to find buyers.
More than anything, thecrisis forced the agency tofocus on finding ways it canincentivize investment in itsproperties. “We are workinghard to prepare zoning plans[for our properties],” said MrMichalski. “More and more[of the agency’s] propertieshave them.”
The AMW has also movedto emphasize transparency, sothat investors know what toexpect. “It is important that wesell in a clear way,” said MrMichalski.
And it looks as if theagency will have plenty ofopportunities to do just that.
AAnnddrreeww KKuurreetthh
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Modlin Citadel is one of a number of prime properties which the AMW has on offer
CO
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Mr Michalski learned how to deal with businesspeople
during his time in multinationals
MARCH 28 – APRIL 3, 2011 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17
Skyscrapers
IIllmmeett nnoott ttaallll eennoouugghh??The building is froma “previous era”
Swiss bank UBS is consideringthe demolition of its Ilmetbuilding, located at RondoONZ in Warsaw’s Wola dis-trict. The reason? It’s not tallor modern enough.
Ilmet, delivered in 1997,stands about 83 meters fromground floor to roof (103meters in total). It ranksamong the 20 tallest buildingsin the capital, but is dwarfed
by the neighboring Rondo 1,which stands around 160meters to its roof (and 192meters in total).
According to TomaszAndryszczyk, a spokespersonfor Warsaw City Hall, repre-sentatives of UBS and city offi-cials met at the recent MIPIMreal estate fair in Cannes,France, to discuss the matter.
“Representatives of UBSinformed us of plans concern-ing the demolition of thebuilding and the construction
of an edifice which is twice ashigh,” he said.
Asked whether UBS’splans would be accepted byCity Hall, Mr Andryszczyksaid, “General regulationsallow for the construction oftaller buildings in this area andthere are no indications ofopposition to this plan.”
Nevertheless, UBS is appar-ently just weighing the idea fornow, and not committed to it.The firm could choose to sim-ply renovate the building rather
than start anew.Commenting on the possi-
bility of the Ilmet buildingbeing replaced, AndrzejCho∏dzyƒski, head of theAMC-Andrzej M. Cho∏dzyƒs-ki architectural studio, saidthat the emergence of tallerbuildings in the vicinity andplans to build a new subwaystop at Rondo ONZ hadchanged the character of thelocale. It is becoming less of afringe area of the city.
“From the urban point of
view, the loss of the buildingwouldn’t change Warsaw’slandscape for the worse.”
Mr Cho∏dzyƒski also
explained that, in terms of thetechnologies applied in high-rise buildings today, Ilmet is arelic of “a previous era.” NNKK
MokotówPlazafullyleasedout, soldCeltic Property Developments(CPD) has leased out the finalvacant space in the MokotówPlaza office building in War-saw.
This lease transaction alsomarks the official completionof the sale of the building. InAugust 2010, CPD soldMokotów Plaza to Spanishinvestment fund AzoraEurope for €33 million, butthe agreement called for thedeveloper to fully commercial-ize the scheme.
Located on ul. Post´pu inthe capital’s S∏u˝ewiec area,Mokotów Plaza is a five-storeyfacility offering 15,290 sqm ofGLA. Tenants include Medi-aCom, Polkomtel, Hachette,VF Polska Distribution,ISource, Abantia and Telepiz-za.
The project is the thirdoffice building which CelticProperty Developments hasdeveloped in Warsaw’sS∏u˝ewiec district. The com-pany also built the Helionand Luminar buildings,which form a complex calledCybernetyki Office Park, inthe same neighborhood.
Another office investmentwithin that complex is current-ly part of Celtic’s pipeline.Construction is scheduled tostart by the end of H1.
Warsaw Stock Exchange-listed Celtic Property Devel-opments has a land bank ofsome 75 ha in Warsaw. Apartfrom office projects, the com-pany is planning a major resi-dential scheme in the capital’sUrsus district. The firm alsoprovides asset managementservices for external institu-tional investors – it currentlycontrols approximately 1.9million sqm of income pro-ducing property.
AAddaamm ZZddrrooddoowwsskkii
WIK
IME
DIA
CO
MM
ON
S
Ilmet could be replaced by a much taller structure
MARCH 28 – APRIL 3, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE18 www.wbj.pl
New Cross
Point tenants
Developer Mermaid
Properties has leased
over 900 sqm of space at
its Cross Point office
building in ¸ódê since the
beginning of this year,
bringing
commercialization to
almost 80 percent. New
tenants at the facility
include TVN, Onet.pl,
ZUMI, Konica Minolta
Business Solution,
Mostostal Warszawa and
Trust Properties. Cross
Point is a class-A
development offering
more than 12,500 sqm of
office space on nine floors.
Action in
Tulipan Park
Segro has leased over
8,100 sqm of warehouse
space at its Tulipan Park
Warszawa logistics center
in Nadarzyn to IT
distributor and computer
hardware manufacturer
Action. Colliers
International represented
the developer in the
transaction. Tulipan Park
Warszawa sits on a 32 ha
plot located on national
road No 8. The complex
offers 140,000 sqm of
warehouse and light
industrial space. ●
PBG’s 2010 revenues and profit up seven percentPBG, one of Poland’s largestconstruction groups, saw itssales revenues and net profitgrow to over z∏.2.74 billion andz∏.224 million, respectively,marking seven percent annualgrowth in both cases. As ofJanuary 1, 2011, the group’sorders book was valued atz∏.5.2 billion, of which z∏.2.8billion worth of contracts werescheduled for realization thisyear.
“This is a comfortable situ-ation for us, since it ensuresrevenues for the next few years
and, in the case of the contractfor the construction of theLNG terminal, the portfoliotakes us even to the year2014,” Jerzy WiÊniewski, pres-ident of PBG’s managementboard, wrote in a letter toshareholders.
He added that the group iswaiting to learn the results of anumber of tenders in the nextfew months, the combinedvalue of which amounts tomore than z∏.30 billion. PBGnow sees the energy sector as achance to boost revenues as
well as increase its scope ofoperations.
Last year the firm begannegotiations with Spanish con-struction group OHL concern-ing a strategic partnership inPoland and abroad. The twoentities are already trying tosecure contracts together.
“Our ambition is to expandinternationally. Countries suchas Ukraine, Russia, Romania,Bulgaria and Brazil come acrossas very interesting and promis-ing markets,” Mr WiÊniewskisaid. AAddaamm ZZddrrooddoowwsskkii
Property investment
CEE second most attractive But Germany takestop spot for anotheryear
Germany and CEE are the twomost attractive European mar-kets in which to purchase realestate in 2011, according to anew study by CB Richard Ellis.
In a survey of almost 350European real estateinvestors, 32 percent and 24percent of those polled namedthe two locations as their topinvestment targets, respective-ly, up from 18 percent and 16percent last year. The majorityof investors are currently
interested in core assets, withover 70 percent of those polledexpecting the historically widegap in yields between primeand secondary properties topersist or become even widerin 2011, and 61 percent notplanning to invest in secondaryproperty at all this year.
“Whilst the majority ofdemand is focusing on coreassets in 2011, we expect anincreasing number of investorswill start turning to more sec-ondary assets in the secondhalf of the year and into 2012as a result of the intense com-petition for core assets,”
Patrick O’Gorman, CEE capi-tal markets director at CBRE,said in a statement.
The survey found that theretail and office sectors arenow the two most attractivereal estate sectors for investors,with 43 percent and 35 percentof respondents, respectively,having named it their primarytargets. Within the retail mar-ket, shopping centers are con-sidered the most attractiveretail sub-market.
In the global perspective,meanwhile, Western Europewas clearly preferred byinvestors in both 2010 and
2011, with Asia the second-most favored destination,albeit with just half as muchinterest. CEE stood in thirdplace both years, followed by
North America, with marginalinterest in South America,Africa/Middle East and, in2011 only, the Pacific region.
AAddaamm ZZddrrooddoowwsskkii
0
10
20
30
40
20112010
OtherItalyNordicsSpainFranceUKCEEGermany
Teutonic bias
"In Europe, which country/region do you believe to be the most
attractive for making investment purchases this year?"
Source: CB Richard Ellis
175
200
225
250
Mar Feb JanDecNovOct SeptAugJulyJuneMayAprMar2010 2011
Falling since autumn
PBG's stock price, March 2010 - March 2011*
*Price on 23rd of each month or nearest trading day
Source: Warsaw Stock Exchange
MARCH 28 – APRIL 3, 2011 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 19
Property restitution
No resolution in sight
Almost seven decades after theend of World War II, Polandstill bears plenty of scars.Among the most visible are the“ruins,” as locals often refer tothem – empty, dangerouslydilapidated buildings, often sur-rounded by housing estates ortucked behind modern busi-nesses. Then there are areasaccurately described as “no-man’s land,” plots of landstanding curiously unoccupiedin prime office areas or adja-cent popular residential devel-opments.
These are, in a very realsense, wounds left over fromthe war and subsequent com-munist rule. And they are slowto heal.
In some places this isbecause a claim has been madeon the property, but the legaland administrative processesinvolved are very slow. In othercases the legal owner of theproperty may be known, butimpossible to find. The upshotis that Polish cities are riddledwith attractive yet effectivelyuseless plots of land.
Legacy of the pastPoland was unusual amongSoviet Bloc nations in thatmuch of its land remained pri-vately owned, with nationaliza-tion confined to the big citiesand former German territoryceded to Poland at the end ofWorld War II. Nevertheless,restitution is a major issue.
“Poland is the only memberof the former Soviet Bloc andEU which never adopted acomprehensive restitution law.So it’s left to individuals to fightit out in the courts,” said PaulFogo, senior counsel at Miller,Canfield, W. Babicki, A. Chel-chowski & Partners.
In Warsaw, the so-called“Bierut Decree” of October1945 did away with all privateland ownership, a move justi-fied by the need to rebuild theshattered city. The inhabitantsof the capital were to apply for“temporary ownership” of theirproperties.
In theory, officials couldreject such applications only insituations when the use of theproperty was no longer possiblebecause of development plans.But, in practice, many rejec-tions were given for purely ide-ological reasons. Some applica-tions were simply neverprocessed.
As a result, since 1989 War-
saw has had to address theproperty rights of the legal heirsof those whose property wasexpropriated. Since then thecity has been reviewing the orig-inal applications and invalidat-ing groundless refusals.
“In 1945-1949, some 17,000applications for establishingtemporary ownership weremade. Currently only theapplications made at that timeare being verified, there is nopossibility to file new claimsconcerning the restitution ofthe decree-related properties,”said Magdalena Jadziewicz-Kasak from the Warsaw CityHall’s press office.
She added that as far as theduration of the restitutionprocess is concerned, there isno rule and each of the cases isdifferent. “The procedure lastsfrom several months to morethan 10 years,” Ms Jadziewicz-Kasak said.
Complicated claimsWhy does it take so long? Inpart, because Poland lacks theproper legal framework to dealwith the issue.
Previous governments havetried to pass restitution legisla-tion, but the bills never made itto the Sejm for voting. In anycase, these laws would havesimply facilitated the process ofcompensating past owners ortheir heirs, but would not havereturned the property itself.And compensation would haveamounted to a fraction of thecurrent value of the property.
But, for those pursuingproperty restitution claims,flawed legislation would proba-bly be better than no legislationat all.
Mr Fogo described the pur-suing of a restitution claim as acomplicated process. First, thewould-be claimant must provethat the property was improper-ly nationalized.
“If the government took theproperty at some point and theprocess followed the then-validregulations, the people are outof luck. You can’t just get backwhat was taken from you – youhave to prove that they didn’tfollow their own procedures,”he said.
Second, in order for aclaimant to actually regain aproperty, it must still be in thepossession of government(local, city or state) authorities.If it’s been sold off, the claimantcan’t get it back, but he or she
can still seek limited compensa-tion.
To do this, the claimant muststill go through the process oftrying to get the property back,even if it’s impossible, in orderto get a judge to officially rulethat the property cannot be
reclaimed. Afterwards, ruling inhand, the claimant can pursuethe State Treasury for compen-sation.
Adding to the muddle is thejudiciary. “Restitution cases areso complicated that it is oftenimpossible to find a judge withthe proper expertise,” Mr Fogolamented.
The latest failureThe government’s latestattempt to address restitutionwas shelved in early March. In acommuniqué announcing thesuspension of work on the law,the Treasury stated that,according to estimates from thefinance minister, enacting itwould have caused public debtto jump by z∏.18 billion and thedebt-to-GDP ratio by one to 1.1
percentage points. “The allocation of a sum of
z∏.20 billion for the realizationof the act could thus result inPoland passing the public debt-to-GDP ratio permitted by theEuropean Union,” the Treasurywrote.
Because of the lingeringeffects of the global financialcrisis as well as Poland’s currenteconomic situation, “the draftact cannot be implemented,”according to the government.No further course of action isnoted in the communiqué, noris there any suggestion that thematter will be revisited in thefuture.
The decision to end work onthe restitution law met withinternational criticism. Manyrestitution claimants today areHolocaust survivors or theirheirs, so the matter is followedwith particular interest in Israeland the US.
Stuart Eizenstat, a specialadvisor to the US secretary ofstate on Holocaust issues, pub-licly expressed the US govern-
ment’s “disappointment” withthe move.
“It’s not just a matter of jus-tice. It also lies in the best inter-est of the Polish [people],because it would removedoubts about the titles of own-ership stemming from potentialclaims to the property,” theWorld Jewish Congress quotedMr Eizenstat as saying. TheCongress expressed similar sen-timents in a separate statement.
These comments had littleeffect, aside from rilingPoland’s foreign minister.
“If the United States hadwanted to help Polish Jews, agood moment for that wouldhave been 1943-44, when themajority of them were still alive,and Poland was pleading forhelp … Such intervention isnow somewhat late,” FMRados∏aw Sikorski commentedin mid-March.
Few successesWith no legislative push toimprove the situation, landownership problems will con-tinue to play a significant role inPolish cityscapes.
There have been a few suc-cess stories. LHI and DomTowarowy Bracia Jab∏kowscyare now developing Nowy DomJab∏kowskich, an office andretail investment located at theintersection of ul. Bracka and
ul. Chmielna in downtown War-saw. The investment sits on aplot which the latter companyreclaimed in 2001.
In another case, the heirs ofthe pre-war owners of HotelEuropejski in Warsaw regainedtheir property in 2005. The vastmajority of the claimants arestill waiting for a happy ending,however.
And in the meantime, landownership disputes pose a seri-ous obstacle to the develop-ment of new real estate proj-ects.
A number of prime plots incentral Warsaw sit vacantdespite having great potential.AIG Lincoln Polska, for exam-ple, has been planning to devel-op land located on the westernside of the capital’s ul. Marsza-∏kowska, between ul. Królewskaand ul. Âwi´tokrzyska, for sev-eral years now. Apart from dif-ficulty in securing a planningdecision, the investment hasbeen plagued by land claims.
“We are not optimisticabout this project,” commentedMiros∏aw Szydelski, investmentdirector at AIG Lincoln.
Situation unchangedMikolaj Martynuska, directorof development consultancy atCB Richard Ellis, decried thepoliticians of the post-commu-nist period for lacking the“courage” to resolve the issueand simplify the process ofinvestment.
“With all due respect tothose people who lost theirproperties in the dark era ofcommunism, this situation cre-ates a serious risk factor and aburden on the transfer of own-ership in Warsaw, which conse-quently obstructs developmentof several parts of Warsaw,” hestated.
“Unfortunately this issueconcerns mostly the city centerof Warsaw and seriously hin-ders availability of land. It obvi-ously has a very visible impacton land prices, as well as on thequality of the city landscape,which is devastated by theunequal development of oursurroundings,” Mr Martynuskaadded. “I’m afraid this situationwill not change any soon.”
Warsaw City Hall’s take onthe matter? Caveat emptor.
“Every investor planning toacquire a plot in Warsaw shouldcarefully check its legal statusfirst,” said Ms Jadziewicz-Kasak. “Checking the legal sta-tus of a property can be done bycontacting the Real EstateDepartment of Warsaw CityHall.” ●
SH
UT
TE
RS
TO
CK
Poland is littered with ruins such as this abandoned office building in Silesia
E Blake Berry, Adam Zdrodowski
“Restitution cases are so complicated thatit is often impossible to find a judge with
the proper expertise”
The government has shelved its latest attemptat restitution legislation, meaning propertyinvestment isn’t getting any easier
MARCH 28 – APRIL 3, 2011TTHHEE LLIISSTT20 www.wbj.pl
Financial Services
Commercial BanksRanked by revenue from interest and fees in 2009 www.bookoflists.pl
Rank
Company nameAddressTel./FaxE-mailWeb page
Revenue frominterest andfees (mln z∏)
Total revenue(mln z∏)
Net profit (mln z∏)
Gross profit onbanking
operations (mln z∏)
Share capital(mln z∏): Dec.
31, 2009 /June 30, 2010
Net assets (mln z∏): Dec.
31, 2009 /June 30, 2010
C/I(Costs/Income)
Ratio: 1st half
of 2010 /2009 / 2008 / 2007
Currentaccounts /
Savingsaccounts /
Hard currencyaccounts
Commercialloans /
Retail loans /Mortgages
Total employees /Year founded
Top localexecutive /
TitleCFO
1
PKO Bank Polski SAul. Pu∏awska 15, 02-515 Warsaw22 521-8440/22 [email protected]
6,943.912,366.712,178.59,604.4
7,282.113,927.013,261.610,720.5
1,502.32,305.53,120.72,903.6
4,778.48,607.09,096.77,447.1
1,250.01,250.0
156,478.7165,699.3
41.9%47.9%45.8%52.7%
✓✓✓
✓✓✓
27,1191919
Zbigniew Jagie∏∏oPresident
BartoszDrabikowski
2
Bank Pekao SAul. Grzybowska 53/57, 00-950 Warsaw22 656-0000/22 [email protected]
WND9,464.011,047.07,190.0
4,957.010,527.012,122.07,761.0
1,227.02,421.03,541.02,162.0
3,526.07,053.07,834.05,398.0
18,371.119,006.9
130,616.1133,427.9
51.2%52.1%48.3%51.1%
✓✓✓
✓✓✓
18,6601929
AlicjaKornasiewicz
President
Luigi Lovaglio
3
Bank Zachodni WBK SAul. Rynek 9/11, 50-950 Wroc∏aw61 856-4017/61 [email protected]
2,356.04,761.04,839.03,885.0
2,576.05,171.05,088.04,045.0
517.0939.0954.0
1,111.0
1,750.03,288.03,258.02,992.0
730.7730,7
6,036.56,247.4
48.7%50.0%51.4%53.4%
✓✓✓
✓✓✓
9,8702001
MateuszMorawiecki
President
Paul Barry
4
BRE Bank SAul. Senatorska 18, 00-950 Warsaw22 829-0000/22 [email protected]
2,243.04,454.04,509.03,190.0
2,626.05,223.05,527.04,025.0
254.0131.0857.0710.0
1,411.02,758.02,589.04,025.0
1,521.73,487.9
4,120.26,508.6
51.2%54.2%55.1%55.5%
✓✓✓
✓✓✓
5,1811986
CezaryStypu∏kowski
President; General Director
Karin Katerbau
5
ING Bank Âlàski SAul. Sokolska 34, 40-086 Katowice32 357-7000/32 357-7507www.ingbank.pl
1,956.04,137.04,376.03,501.0
2,038.04,276.04,414.03,584.0
369.0595.0445.0631.0
1,319.02,480.02,079.02,029.0
130.1130.1
4,884.45,280.1
59.4%58.8%70.5%67.0%
✓✓✓
✓✓✓
8,5251989
Ma∏gorztaKo∏akowska
President
Miros∏aw Boda
6
Bank BPH SAAl. Pokoju 1, 31-548 Kraków58 [email protected]
1,610.03,397.02,080.01,640.0
1,621.03,448.02,133.01,660.0
-224.053.0234.0421.0
1,100.02,269.01,291.01,660.0
383.3383.3
4,389.54,165.6
WNDWND59.6%52.3%
✓✓✓
✓✓✓
7,2041989
Richard GaskinActing President
George Newcomb
7
Bank Millennium SAul. Stanis∏awa ˚aryna 2A, 02-593 Warsaw801-331-331/22 598-2563www.bankmillennium.pl
1,481.02,950.03,060.02,238.0
1,616.03,307.03,274.02,424.0
138.01.5
413.0462.0
854.01,514.01,866.02,424.0
3,491.44,545.5
44,913.846,317.0
63.3%70.4%64.5%61.9%
✓✓✓
✓✓✓
6,1791989
Bogus∏aw KottPresident
Julianna Boniuk-Gorzelaƒczyk
8
Bank Handlowy w Warszawie SAul. Senatorska 16, 00-923 Warsaw22 657-7200/22 [email protected]
1,352.02,759.03,040.02,848.0
1,610.03,325.03,493.03,462.0
349.0504.0600.0824.0
1,286.02,418.02,313.02,447.0
523.0523.0
6,199.06,132.0
52.5%53.5%62.3%60.6%
✓✓✓
✓✓✓
6,1551870
S∏awomir S.SikoraPresident
Witold Zieliƒski
9
Kredyt Bank SAul. Kasprzaka 2/8, 01-211 Warsaw22 634-5400/22 [email protected]
1,287.02,724.02,702.01,963.0
1,432.03,157.03,034.02,227.0
73.334.6325.0391.0
765.01,799.01,586.01,362.0
1,358.01,358.0
39,077.042,245.0
58.5%54.5%67.5%70.1%
✓✓✓
✓✓✓
4,7001990
Maciej BardanPresident
Piotr Sztrauch
10
Bank BG˚ ul. Kasprzaka 10/16, 01-211 Warsaw22 860-4340/22 860-5900www.bgz.pl
817.01,556.01,698.01,366.0
893.01,862.01,963.01,630.0
21.0101.0213.0272.0
460.0933.0
1,009.0905.0
43.143.1
24,433.726,198.4
80.2%77.0%70.8%70.9%
✓✓✓
✓✓✓
5,1631975
Jacek BartkiewiczPresident
Jeroen Nijsen
11
AIG Bank Polska SAul. Strzegomska 42C, 53-611 Wroc∏aw71 358-2222/71 358-2361www.aigbank.pl
WND1,520.01,534.01,073.0
WND1,555.01,562.01,095.0
WND30.0230.0247.0
WND1019.0948.0706.0
111.9WND
1,074.0WND
WND24.2%35.4%30.2%
-✓-
✓--
2,6651998
Ramon BillordoPresident
Ewa Lipiƒska
12
Raiffeisen Bank Polska SAul. Pi´kna 20, 00-549 Warsaw22 585-2001/22 [email protected];www.raiffeisen.pl
599.01,376.01,526.01,169.0
829.01,407.01,556.01,271.0
119.0118.0315.0301.0
559.4989.11137.01271.0
1,168.91,168.9
20,998.921,786.4
55.7%57.4%52.6%56.1%
✓✓✓
✓✓✓
2,6841991
Piotr CzarneckiPresident
Piotr Konieczny
13
Fortis Bank Polska SAul. Suwak 3, 02-676 Warsaw22 566-9000/22 [email protected]
561.01,089.01,196.0WND
429.0570.0532.0WND
15.0-430.078.0WND
421.0543.0517.0WND
1,060.31,205.9
20,435.021,443.4
----
✓✓✓
✓✓✓
2,8541991
Frederic AmoudruPresident
Jan Bujak
1st half of 2010 / 2009 / 2008 / 2007
Activities
MARCH 28 – APRIL 3, 2011 TTHHEE LLIISSTT www.wbj.pl 21
Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List wasdone in April 2010. Number of employees and ownership structure are as of March 2010.All information pertains to the companies’ activities in Poland. Companies not responding toour survey are not listed.
To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typo-graphical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka, ul. Elblàska15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to [email protected]. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproducedin whole or in part without prior written permission of the publisher. Reprints are available.
Rank
Company nameAddressTel./FaxE-mailWeb page
Revenue frominterest andfees (mln z∏)
Total revenue(mln z∏)
Net profit (mln z∏)
Gross profit onbanking
operations (mln z∏)
Share capital(mln z∏): Dec.
31, 2009 /June 30, 2010
Net assets (mln z∏): Dec.
31, 2009 /June 30, 2010
C/I(Costs/Income)
Ratio: 1st half
of 2010 /2009 / 2008 / 2007
Currentaccounts /
Savingsaccounts /
Hard currencyaccounts
Commercialloans /
Retail loans /Mortgages
Total employees /Year founded
Top localexecutive /
TitleCFO
14
Nordea Bank Polska SAul. Kielecka 2, 81-303 Gdynia58 669-1000/58 [email protected]
414.9803.5827.3494.5
526.6975.2957.8589.1
121.6145.2136.470.5
367.8593.4487.1328.4
1.11.2
20.421.4
56.0%65.0%63.0%71.0%
✓✓✓
✓✓✓
2,1431992
W∏odzimierzKiciƒskiPresident
Bohdan Tillack
15
Bank Ochrony Ârodowiska SAAl. Jana Paw∏a II 12, 00-950 Warsaw22 850-8720/22 [email protected]
380.0720.0710.0578.0
387.0734.0770.0649.0
36.526.90.346.5
224.0400.0367.0351.0
447.0543.0
920.01,051.0
73.7%83.4%80.4%76.9%
✓✓✓
✓✓✓
1,7481991
Mariusz KlimczakPresident
Mariusz Klimczak
16
Santander Consumer Bank SAPl. Grunwaldzki 23, 50-365 Wroc∏aw71 323-6210/71 [email protected]
309.7716.7719.2532.6
328.2795.3879.8599.8
14.624.5105.687.5
177.1405.5357.0329.6
364.0364.0
1,015.31,029.9
35.2%36.4%39.9%41.8%
---
✓✓-
6891995
Piotr ˚abskiPresident
Jose Luis SanchezDiaz
17
Bank Polskiej Spó∏dzielczoÊci SAul. P∏ocka 9/11B, 01-231 Warsaw22 539-5231/22 [email protected]
349.0661.0725.0493.0
411.0742.0768.0524.0
37.057.054.044.0
135.0251.0223.0194.0
133.3133.3
12,473.513,884.8
0,710,710,710,73
✓✓✓
✓✓✓
1,2692002
Miros∏aw PotulskiPresident
WND
18
Bank DnB NORD Polska SAul. Post´pu 15C, 02-676 Warsaw022 524-1000/022 525-1001www.dnbnord.pl
118.8447.0447.1287.7
WNDWNDWNDWND
35.179.810.64.3
153.2246.8238.1158.8
625.2625.2
7,752.08,715.2
62.2%90.5%92.8%85.9%
✓✓✓
✓✓✓
1,1002002
Bartosz Chyt∏aPresident
Krzysztof G´bal
19
Rabobank Polska SAAl. Jana Paw∏a II 27, 00-958 Warsaw22 653-5000/22 [email protected]
108.0366.0437.0300.0
110.0372.0445.0300.0
18.016.026.010.0
40.090.059.038.0
211.0228.0
5,472.06,919.0
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501993
Jerzy JacekSzugajew
President
DorotaMliczewska
20
Bank Pocztowy SAul. Jagielloƒska 17, 85-959 Bydgoszcz52 349-9100/52 [email protected]
158.0306.0296.0251.0
166.0312.0304.0261.0
3.09.026.030.0
105.0222.0201.0261.0
97.397.3
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1,4761990
Tomasz BogusPresident
Micha∏ Sobiech
21
Alior Bank SAAl. Jerozolimskie 94, 00-807 Warsaw22 555-2222/22 [email protected]
273.0274.065.0
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375.0349.065.0
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195.0143.061.0
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3,3002008
Wojciech SobierajPresident
Niels Lundorff
22
Invest-Bank SAul. Ostrobramska 77, 04-175 Warsaw22 514-5107/22 514-5106www.investbank.pl
97.0214.0234.0187.0
104.0232.0256.0218.0
2.02.010.016.0
62.0139.0148.0132.0
261.9261.9
193.6196.9
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1,0511991
Gra˝yna NiewolikPresident
BarbaraMartynowicz
23
Volkswagen Bank Polska SARondo ONZ 1, 00-124 Warsaw22 538-7000/22 [email protected]
94.0203.0212.0162.0
117.0236.0241.0188.0
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65.0112.0109.0107.0
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3131997
Jaros∏awKonieczka
President
JahannesNeumaier
24
DZ BANK Polska SAPl. Pi∏sudskiego 3, 00-078 Warsaw22 505-7000/22 [email protected]
55.0108.0139.0124.0
56.0114.0142.0131.0
6.027.022.013.0
43.0103.0103.0131.0
191.4191.4
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1981990
Rainer FuhrmannPresident
Marcin ˚ochowski
NR
HSBC Bank Polska SAul. Marsza∏kowska 89, 00-693 Warsaw22 354-0500/22 [email protected]
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Janusz DedoPresident
Patrick Lefloch
NR
Lukas Bank SAPl. Orlàt Lwowskich 1, 53-605 Wroc∏aw801-331-111/71 [email protected]
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6,0911991
Romuald SzeligaPresident
Jean-PaulPiotrowski
NR
Polbank EFGul. Mokotowska 19, 00-560 Warsaw22 347-7000/22 [email protected]
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WND2005
KazimierzStaƒczak
General Director
Micha∏ Jarecki
NR
Société Générale SA Oddzia∏ w Polsceul. Marsza∏kowska 111, 00-102 Warsaw22 528-4000/22 [email protected]
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2001992
Tomasz WirthGeneral Director
DominiqueLhuillery
1st half of 2010 / 2009 / 2008 / 2007
Activities
MARCH 28 – APRIL 3, 2011AARRTTSS && CCUULLTTUURREE22 www.wbj.pl
Centre for ContemporaryArt at Ujazdowski Castle ul. Jazdów 2www.csw.art.pl
Czarna Gallery ul. Marsza∏kowska 4www.czarnagaleria.art.pl
Galeria 022, DAP, Lufcik ul. Mazowiecka 11awww.owzpap.pl
Galeria 65 ul. Bema 65www.galeria65.com
Galeria Appendix 2 (Praga)ul. Bia∏ostocka 9www.appendix2.com
Galeria Asymetria ul. Nowogrodzka 18awww.asymetria.eu
Galeria Foksal ul. Foksal 1-4www.galeriafoksal.pl
Galeria Milano Rondo Waszyngtona 2A (Praga)www.milano.arts.pl
Galeria Schody ul. Nowy Âwiat 39www.galeriaschody.pl
Galeria XX1 Al. Jana Paw∏a II 36www.galeriaxx1.pl
Galeria Zoya ul. Kopernika 32 m.8www.zoya.art.pl
Green Gallery ul. Krzywe Ko∏o 2/4www.greengallery.pl
Katarzyna Napiórkowska Art Galleryul. Âwi´tokrzyska 32, ul.Krakowskie PrzedmieÊcie 42/44and Old Town Square 19/21www.napiorkowska.pl
Królikarnia National Galleryul. Pu∏awska 113awww.krolikarnia.mnw.art.pl
Le Guern Galleryul. Widok 8, www.leguern.pl
Museum of IndependenceAleja SolidarnoÊci 62www.muzeumniepodleglosci.art.pl
National Museum in Warsaw Al. Jerozolimskie 3www.mnw.art.pl
Polish National Opera atTeatr WielkiPl. Teatralny 1www.teatrwielki.pl
Pracownia Galeriaul. Emilii Plater 14www.pracowniagaleria.pl
Rempex Art and Auction Houseul. Karowa 31www.rempex.com.pl
Royal CastlePl. Zamkowy 4www.zamek-krolewski.com.pl
Simonis Galleryul. Burakowska 9www.simonisgallery.com
State ArchaeologicalMuseum in Warsawul. D∏uga 52 (Arsena∏) www.pma.pl
State Ethnographic Museumul. Kredytowa 1www.ethnomuseum.website.pl
Historical Museum of Warsaw Old Town Square 28-42www.mhw.pl
History Meeting House of Warsaw ul. Karowa 20www.dsh.waw.pl
Warsaw Philharmonic ul. Jasna 5www.filharmonia.pl
Warsaw Rising Museum ul. Grzybowska 79www.1944.pl
Wilanów Palace Museumand Wilanów PosterMuseumul. St Kostki Potockiego 10/16www.milanow-palac.plwww.postermuseum.pl
Zachęta National Art GalleryPl. Ma∏achowskiego 3www.zacheta.art.pl
Museums, galleries and venues in Warsaw
Various exhibitionsThe Eryk Lipiƒski Museumof Caricature
Just in time for April Fool’sDay, a new exhibition exam-ines the works of Polish cari-caturist, animator, illustratorand satirist Karol Baraniecki.Commemorating 100 yearssince his birth, the exhibitioncomprises drawings andsketches spanning the artist’scareer.
These include early works,dating from 1928 (and hiswork for the Lwów-basedmagazine “The Puller”) to hisown 1950s bi-weekly publica-tion “Carousel.” Not forgot-ten is his best-known work,namely the 1960s/70s chil-dren’s animation “TheEnchanted Pencil.” The exhi-bition runs until June.
Baraniecki’s work is ingood company. A secondexhibition, also launching inApril, showcases the talentsof Bohdan Butenko, an illus-trator, writer and satirist fromBydgoszcz. Like his contem-porary, he’s also credited withnumerous films and anima-tion, and his work has beenshowcased as far afield as
Paris, Tokyo, Baltimore andBerlin.
Together Baraniecki andButenko offer two solid rea-sons to visit the Eryk LipiƒskiMuseum of Caricature, buthow about a third? Or18,000? That’s how manyworks the museum touts.
Established in 1971, origi-nally as part of the Museumof Literature, it gained inde-pendence in 1983, when itmoved to its current home onul. Kozia. Set in a townhousedesigned by architect J. Ch.Kamsetzera (also creditedwith Warsaw’s Royal Castle),the museum is named after itsfounder and first director,
Erik Lipiƒski (1908-1991). Hebegan gathering materials forthe museum some 20 yearsbefore its opening, personallyraising funds with which tobuy works.
Among their number areboth Polish and internationaldrawings and paintings, dat-ing from the 1700s to thepresent. The collection has astrong Polish focus, withworks of masters past andpresent, but foreign artists arealso well represented.Pioneering exhibitions haveincluded “The Tastes andSmells of PRL” and “War andPeace. Polish caricature artfrom 1914-1939.” ●
An animated historyC
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“Legends of Shaolin” Palace of Culture, CongressHall, April 3, 5 pm
A journey through space andtime, this two-hour show takesus to 16th century China. Oncethere, we’re introduced to
monks of the Shaolinmonastery and the traditionsand philosophies of Zen Bud-dhism.
Performing in traditionalcostumes and accompanied byperiod music, this is school-his-
tory-meets-Broadway. Per-formers aged seven to 75 taketo the stage, engaging in every-thing from meditation to com-bat, bringing the ancient Ori-ent to the modern-day Occi-dent. ●
Much ado about kung fu “The Most BeautifulHarp Pieces”Concert Hall, The FryderykChopin University of MusicApril 3, 5 pm
The University’s students per-form a harp-heavy programthat includes works by H.
Renié, G. Fauré, M. Ravel, B. Andrés, M. Grandjany. ●
Pluckin' good music
Some content provided bythe Warsaw Insider. Formore information on cultureand entertainment inWarsaw this month, pick up the March issue.
Liszt – 200th BirthdayAnniversaryConcert Hall, The FryderykChopin University of Music, April 4, 7 pm
The program includes“Sonata in B minor,”“Etudes d’exécution transcen dante d’aprés Paganini”and “Aprés une lecture du
Dante: Fantasia quasi Sona-ta.” Performers includeAnna Kubicz, PaulinaDru˝biƒska and MateuszCzech. ●
A celebration of Liszt
St. Petersburg’s All-MaleBallet CompanyPalace of Culture, CongressHall, April 9, 7 pm
“Men in tights” is how thisRussian ballet is being billed,
and, indeed they are: the per-formers take on both maleand female roles from thecanons of balletic dance histo-ry. The troupe has tiptoed itsway around the world, per-
forming in cities such asTokyo, Copenhagen, Helsin-ki, Jerusalem, Seoul, Johan-nesburg, Shanghai and Bei-jing. Classical ballet with asense of humor. ●
Testosterone all a-twitter
“One Flew Over theCuckoo’s Nest”Studio BuffoApril 11, 9:30 am & 12:30 pm
A stage adaptation of thewell-known novel (and film)underpinned by the radicalchanges of 1960s America.Set in an oppressive psychi-atric ward, the plot sees pettycriminal and outsiderMcMurphy meet his match inNurse Ratched.
This is a joint productionby the TNT Theatre and theADGE Group, which endeav-ors to promote English-lan-guage performances to audi-ences in the Czech Republic,Slovakia and Poland. Actorshail from London, Paris and
the US. The play makes useof physical theater and origi-
nal musical compositions.Runs till April 18. ●
Theater of the insane
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American Evening in BuffoStudio BuffoApril 13, 7 pm
Part of Studio Buffo’s Nation-al Song and Culture Eveningscycle. The theater often show-cases Russian, French andItalian musical styles (as wellas cultural pieces rangingfrom Gypsy vocals to Jewishdance), and here it takes onAmerica’s greatest hits. It’s atwo-hour energy-fest, with anon-stage band taking youfrom Janis Joplin to JamesBrown to Elvis and beyond.Choreography, needless tosay, is inspired by Americandance. ●
Soul and rock'n'roll
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MARCH 28 – APRIL 3, 2011 LLAASSTT WWOORRDD www.wbj.pl 23
The sound of lamentation and despair
Tech Eye
Techeye always knew that men inwhite coats would show up at ourdoor some day. As it turns out, thatday was last Thursday.
Contrary to our expectations, how-ever, these men had no intention oftaking us to a very special place withsoft walls where the heavily medicat-ed residents spend hours drawing but-terflies and unicorns. It was muchworse, actually – they’d come to makegiant holes in the walls of Techeye’sapartment, ostensibly to replace waterpipes. In fact, they were sadists benton destroying just enough of ouryears-old, impossible-to-find-nowa-days bathroom and kitchen tiles to
cause an interiordecorator to despair.
Our pleas fell on deaf ears. Beg-ging didn’t help, nor did weeping untilmagnificent snot bubbles began toswell and burst wetly in the airbeneath our red, swollen nose. Thesemen had come to make holes, and
holes they were going to make. So inthe end we retreated to the one quietplace in the apartment – the balcony –to trawl the internet for fancy technol-ogy to fix our walls.
Toys galoreLong story short, we didn’t find any-thing to help with our hole problem,but we did come across some cooltoys.
Take OnStar’s new FMV mirror,for example. If you’re not familiarwith OnStar, it’s a provider of sub-scriptions-based, in-car services, suchas hands-free calling, in-vehicle secu-rity and turn-by-turn navigation,
a m o n gother things. It’s not yet available inEurope, but OnStar (a subsidiary ofGeneral Motors) is looking to expandacross the pond in the near future.
So why is the FMV mirror excit-ing? Well...uh...it’s got buttons. Soft,candy-like buttons which give you
access to OnStar’s services. Andthere’s a microphone, whichprobably facilitates hands-free calling. Or lets thegovernment/evi lmachines/alienstrack your everybreath andsneeze. One orthe other.
As we said, youcan’t get this thing inEurope yet. But when it finallyappears, expect to drop a couple hun-dred of your preferred currency on it.
Then there’s something a bit morerelevant to those of us who don’t owncars in America – Sony Ericsson’s newXperia Play. Marketed as the “world’sfirst PlayStation-certified smart-phone,” it’s got the standard ameni-ties (like a five-megapixel camera, afour-inch multitouch screen andsocial networking integration), but it’salso got a 1Ghz Snapdragon proces-sor with an imbedded Adreno GPU.
Snapdragon? Adreno? What’sthat? All you really need to know isthat they facilitate on-the-go-enter-tainment, and the line-up of gameswill soon include The Sims 3, FIFA10, Assassin’s Creed and Splinter
Cell, all triple-A titles (albeitunproven on a mobile platform).
The Xperia Play runs anAndroid OS and you should
expect to pay around €649(z∏.2,614) off-contract. Avail-
able from April 1. Finally, something a
little different – SonitusMedical’s SoundBite.
This hearing aid is “theworld’s first non-surgical,
removable hearing and communica-tion solution that is designed toimperceptiblyt r a n s m i tsound via thet e e t h . ”That’s animpressivelys p e c i f i c“ w o r l d ’ sfirst,” butnot quite ascool as“world’s firstwaffle-bak-ing, convent-building robotdonkey-launcher.” Now that wouldbe impressive.
Aside from the fact that it relies
on your bones to conduct the soundwaves, the SoundBite remains some-thing of a mystery to Techeye. Canyou tune it into a local radio station?Can you hook it up to OnStar tofacilitate turn-by-turn navigation?So far Sonitus isn’t saying.
A couple of things are clear,though – Sonitus got approval for aEuropean roll-out in mid-March,so you can expect it to appear onthe market in the nearish future ata price of several thousand <insertcurrency here>. Also, the
SoundBite onlyworks forpeople suf-fering fromsingle-sideddeafness, sodon’t botherif you’re ofthe double-deaf variety.
Unfortu-nately thatrules out the
w o r k m e nwho showed
up at our doorstep last week, and,after all the ruckus they created,possibly Techeye as well. ●
Ever blown snot bubbles at a stone-faced man carrying a sledgehammer? Let us know: [email protected]
X
To advertise in WBJ’s classifieds section, contactMs Agnieszka Brejwo, at
(+48) 222-577-526 or [email protected]
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