Wojciech Balczun, Poland’s state assets minister, has confirmed that the Polish government is negotiating with banks over possible loans to rescue Poland-based coking coal producer Jastrzebska Spolka Weglowa SA (JSW), according to a report by Reuters. The government and banks will determine the size, terms and conditionality of any loan package. The effectiveness of the rescue will likely influence coal-and-steel supply dynamics in Poland and the region.
JSW is under severe financial stress due to falling coal prices, rising energy costs, and growing competition from low-cost steel imports. The minister noted that a restructuring process is needed, including disposal of non-core assets to raise funds. The government’s plans for the restructuring program will include co-financed voluntary redundancies and wage-related adjustments to support financial recovery, intending to transform and save JSW, as SteelOrbis previously reported.
