WBJ #5 2012

Fiat plans to lay off 1,500 Polish workers, prompting the government to promise aid for the auto industry

7

WWW.WBJ.PL

5

2.8%

Poland’s inflation rate fell sharply in November, as the economic slowdown takes its toll

VOLUME 18, NUMBER 50 • DECEMBER 17-23, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA COURTESY OF SOLSKI BURSON-MARSTELLER

REAL ESTATE

Since 1994 . Poland’s only business weekly in English

Doctor’s orders Big returns could be on offer in India’s medical market, but Polish firms are 12-13 reluctant to make a house call

• BRE Bank offices • Warsaw Spire tenant • Immofinanz’s Nimbus

Plus • Alior debut • Martial law politics • Smolensk wreckage • Serbian ambassador • Neste sells gas stations • North Korea rocket launch

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Interview . . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Law . . . . . . . . . . . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . .15-17 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23

Flying low

Euro progress

LOT requests state aid and fires its CEO as the losses continue to mount for the troubled state-owned airline 5

Europe moves closer to a banking union, while Poland promises a decision on whether to adopt the euro

3

NEWS

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is Poland’s rank in terms of economic strength among the EU27 countries, based on a report by the European Commission.

2nd the Polish z∏oty is now second in a ranking of currencies that have strengthened the most against the dollar this year, gaining almost 10 percent against the US currency since the beginning of January.

z∏.1.5 billion is the bailout requested by Polish airline LOT, according to unnamed sources quoted by TVN24.

Quote of the Week “PO reacts with glee anytime we hear Kaczyƒski speaking like he did yesterday.”

Beata Socha

Figures in focus Rivers of gold Workers' remittances, outflows from EU27 member states, in millions of euro, 2011 9,661

10,000

8,000

7,268

*Lowest in EU27 **Highest in EU27

7,394

6,000

4,000

2,977

2,000

922 59

7

1

168

191 * ce*

Ita ly

Fra n

in Sp a

rm an y

0

Source: Eurostat

Company index ACE 1 ................................17 Gazprom..............................9 PKO BP ..............................6 Acteeum Central Europe..17 Gerber ..............................23

PMR Research....................6

Alior Bank ..........................5 Ghelamco Poland ............16

On WBJ.pl

Polkomtel............................6 Allstarcade........................23 GM ......................................5 B&B ..................................15 Immofinanz Group............15

Poland: global spam leader Every 40th spam e-mail message in the world comes from Poland, according to a ranking by Sophos, which places the country in 10th place globally, Dziennik Gazeta Prawna reported. Even on holidays and weekends, thousands of unwanted and often dangerous messages are sent from Poland. ●

raising the issue for the past two and a half years at all possible levels. We demand that former Russian President Dmitry Medvedev’s promise to the victims’ families be fulfilled and the wreckage, our property, be brought back to Poland.”

Russia’s Foreign Ministry has expressed surprise at Mr Sikorski’s persistence in discussing the matter.

“Our Polish partners are fully aware of Russia’s stance as it has been communicated on many occasions at various levels,” Mr Lukashevich said, going on to explain that “the wreckage, being material evidence in the investigation of the crash, may be released only after the investigation has been completed.”

ece

eral cooperation.

The matters usually raised at the committee’s meetings concern international politics such as the difficult relations between the EU and Russia or Polish-Russian cooperation in critical areas, such as energy.

Mr Lukashevich called the committee “a productive forum.” “That is why we suggested drafting a document with our Polish partners based on the outcomes of the current meeting, which would outline the future strategy for building Russian-Polish medium-term relations,” he added.

Mr Sikorski, when asked if he was planning on discussing the matter of the wreckage of the Polish plane that crashed in Russia in 2010, replied, “We have been consistently

Ge

The Polish and Russian foreign ministers, Rados∏aw Sikorski and Sergey Lavrov, are meeting in Moscow on Monday, the spokesperson for Russia’s Ministry of Foreign Affairs, Alexander Lukashevich, said last Friday. The talks will focus on “current issues in bilateral relations as well as international and local matters.”

Mr Lavrov and Mr Sikorski will also co-chair the meeting of the Committee for the Polish-Russian Cooperation Strategy, Mr Lukashevich said. The committee, made up of the countries’ various ministers, was established after Russian President Vladimir Putin’s official visit to Poland in January 2002 for the purpose of determining the strategic aspects of bilat-

Grzegorz Schetyna, deputy leader of the ruling Civic Platform (PO) party, talking about how radical statements made by opposition leader Jaros∏aw Kaczyƒski have helped his party remain popular with Poles.

Gre

Foreign Minister Rados∏aw Sikorski (left) and his Russian counterpart Sergey Lavrov

nd Ro ma nia Lith ua nia

Low-cost air carrier Wizz Air will stop flying from Warsaw’s Modlin Airport to Budapest starting from December 21. All flights on this route will be serviced from and to Warsaw’s Fryderyk Chopin Airport. Wizz Air made the decision because Modlin lacks an Instrument Landing System (ILS), which is essential for allowing aircraft to land in foggy conditions. The absence of this system caused multiple delays and rerouting of Wizz Air flights, which affected 30,000 passengers.

16th

a

Wizz Air changes route

is the share of Polish enterprises which provide their staff with portable devices that allow them to access the internet, the second-highest in the EU.

Pol a

If Poland ever wants to get ahead of EU economies instead of only playing catch-up, it needs to change its system of public support for businesses, reported Rzeczpospolita. The findings stem from a new report on innovation in Poland, in which the World Bank points out that the EU funds distribution system does not see funding going where it is most needed.

96%

Sikorski-Lavrov talks

Slo vak i

Innovation spending misguided: report

Numbers in the News

ia*

Irish low-cost airline Ryanair announced last week that it would be opening a new base in Kraków, southern Poland, in April 2013. It will be Ryanair’s 53rd base in total and its second in Poland, after Wroc∏aw. The base in Kraków will house aircraft flying a total of 31 routes including four new routes to Dortmund, Gothenburg, Kos, and Manchester. The number of total weekly flights is expected to reach 224. The entire investment at Kraków Airport totals $140 million.

IN THE SPOTLIGHT

Est on

Ryanair’s new Kraków base

DECEMBER 17-23, 2012

COURTESY OF MSZ.GOV.PL AND WIKIMEDIA COMMONS

2

Regulating global finance

Bank Pocztowy ..................6 IMS Poland........................13 Porr Polska ......................15

Log on to WBJ.pl to read about how the IMF has recently embraced a new “institutional view” that seemingly endorses re-regulating global finance. But has its reconsideration of financial globalization gone far enough?

Biedecki ............................14 Jones Lang LaSalle..........16 Post Office ..........................6 Bioton................................13 Libra Project ....................17

Calendar

PZ Cormay ........................13 BRE Leasing ....................15 LOT ......................................5 CA Immo ..........................15 Lotos ..................................6

MILTON H. GREENE PHOTO AUCTION

19

YOUNG ART AUCTION

Event:

Second and last auction of photos featuring Marilyn Monroe and other celebrities, such as Frank Sinatra, Audrey Hepburn and Marlene Dietrich.

Event:

Ninety-seven works by young artists will be up for auction. Starting prices are as always z∏.500.

DESA Unicum auction house, ul. Marsza∏kowska 34-50, Warsaw desa.pl

desa.pl

Ryanair................................2 Savills................................16

Carlo Tessara......................5 Medicalgorithmics............13 CBRE ..........................15, 16 Moody’s Investors Service..7

17

Web:

Can-Pack ..........................12 Gazownictwa ....................16

RKW ..................................15

Shell ....................................6

December

DESA Unicum auction house, ul. Marsza∏kowska 34-50, Warsaw

PTK Centertel ....................6

BRE Bank..........................15 Linklaters..........................16

Caelum Development ......15 Mazowiecka Spó∏ka

Location:

Polska Telefonia Cyfrowa ..6

Location:

Web:

CBRE Global Investors ....16 Neinver Poland ................15

TCI Laboratories ..............12

CEZAMAT ..........................17 Neste Oil ............................6 TZMO ................................12 Clifford Chance ................16 Orange Polska ....................6 Vienna Stock Exchange ....15 DTZ ....................................15 Orbotix ..............................23

VTS ....................................12

Fiat ......................................9 Peakside Polonia WSE ........................5, 13, 15 Fiat Auto Poland ................5 Management ....................16 Futureal Group ................15 Peter Nielsen & Partners ....14

Wizz Air ..............................2

Gant Development ............15 PKN Orlen ..........................6 X-Trade Brokers ..............20

NEWS

DECEMBER 17-23, 2012

www.wbj.pl

3

Euro zone crisis

Tusk: decision on euro adoption coming soon Prime Minister Donald Tusk has announced that his government’s final decision on whether to take Poland into the euro zone will be made in the “nearest months.” Earlier Mr Tusk and his ministers had talked merely about Poland “fulfilling all the necessary requirements” needed to join the currency union without giving a straightforward answer on when exactly Poland planned to adopt the euro.

“Poland joining the euro zone is a matter of years but the decision [about whether to join] must be made in the nearest months,” said Mr Tusk while in Brussels.

“We have to decide whether we want to be part of the heart of Europe, which will be the union around a financial-economic axis, where the common currency is the foun-

dation, or whether we will rather be a peripheral country with its own currency,” said the prime minister, implying what he felt to be the best choice.

But if Mr Tusk indeed decides to go through with setting a concrete date for adopting the single currency, he will have a hard sell to make to his fellow citizens.

A November poll showed 58 percent of Poles think adopting the euro would be bad for Poland.

Banking union closer The prime minister made the statements while attending an EU summit at which a deal was agreed to create a banking supervisor that will oversee euro zone banks that have over €30 billion in assets, operations in at least two

at the deal saying “the banking supervisor will be able to detect and correct problems in national banking sectors before they become a danger for the entire euro zone.”

countries or make up more than 20 percent of their country’s GDP. In justified circumstances, the supervisor, which will operate under the auspices of the European Central Bank (ECB), will also be able to oversee smaller banks. Other banks, including from noneuro zone countries, can choose to come under supervision voluntarily. The process is supposed to take off fully by March 1, 2014.

EU leaders hope this will be a major step towards a “banking union” and more importantly towards solving the ongoing debt crisis in the euro zone.

Importantly for Poland, the ECB will implement a process that gives non-euro zone members a path to appeal decisions they don’t agree with, even if they don’t choose to come under supervision themselves.

German Chancellor Angela Merkel voiced her satisfaction

No separate euro zone budget And, importantly for Poland, Ms Merkel ruled out the possibility of a separate budget for the euro zone, something which EU Council President Herman Van Rompuy has been implicitly floating recently.

There will, however, be emergency funds for euro zone countries that find themselves in trouble. The money could come from a tax on financial transactions or from structural funds. It would be “10, 15 or 20 billion euro,” said Ms Merkel, although the details are still being worked out.

Warsaw has been vocal against the idea of a separate budget for the euro zone, since it fears it would lower the

COURTESY OF THE EUROPEAN PARLIAMENT

Poland’s prime minister is signaling that his government will soon decide whether to join the euro zone, which has just moved closer towards creating a banking union

Prime Minister Tusk seems to favor Poland adopting the single currency funds for the general EU budget. Poland is the biggest beneficiary of cohesion funds from that budget.

In 2013, the European Central Bank is due to start supervising the most impor-

tant and vulnerable banks in the euro zone. It will have the power to force banks to raise their capital buffers and even close down lenders it deems unsafe.

Remi Adekoya.

Smolensk tragedy

The foreign minister was accused of “confessing to helplessness,” but stood his ground Polish Foreign Minister Rados∏aw Sikorski wants EU diplomats to help persuade Moscow to hand over the wreckage of the Polish presidential plane that crashed near Smolensk, Russia in April 2010.

Mr Sikorski has asked Catherine Ashton, the EU’s head of diplomacy, to formally raise the issue of the return of the wreckage of the plane. The crash killed then-President Lech Kaczyƒski and 95 others.

The Polish foreign minister wants Ms Ashton to bring up the issue during a December 21 EU-Russia summit, which Russian President Vladimir Putin is scheduled to attend.

“Since bilateral communication channels with Russia are not effective, we are forced to move the issue to the international level,” Mr Sikorski said last week while announc-

ing his request to Catherine Ahton.

Rados∏aw Sikorski said he had raised the question of the return of the plane while talking to Russian Foreign Minister Sergey Lavrov, but heard that the wreckage would remain in Russia till the end of the investigation into the crash, the deadline for which hasn’t been set.

‘Is this a joke?’

Mr Sikorski’s move received a lot of criticism from Polish politicians.

“Is this a joke or is this serious?” asked Law and Justice (PiS) parliamentary caucus leader Mariusz B∏aszczak. “It has been two and a half years since the catastrophe. It is difficult to imagine that such moves could be effective [now],” he added.

It is important to note however, that PiS has been virulent in its criticism of Mr Sikorski for not securing the return of the presidential plane wreckage. Lech Kaczyƒski was the co-founder of PiS. But even some politicians

from Mr Sikorski’s party, Civic Platform (PO), were critical of his latest idea.

“This is confessing to helplessness. I doubt Mr Putin will change his course of action,” said Hanna GronkiewiczWaltz, mayor of Warsaw and deputy leader of PO. Meanwhile, Józef Oleksy, a former prime minister and now deputy leader of the Democratic Left Alliance, said Mr Sikorski was “announcing the capitulation of Polish diplomacy, his diplomacy,” and showing that Poland was “helpless.”

Our property But Mr Sikorski stood his ground and fired back at his critics.

“This is not understanding the basic rules of diplomacy. If an issue is unresolved, you raise it at a higher level,” said Mr Sikorski on TVN24 in response to his critics. He said he wanted Ms Ashton to say at the summit that an EU member had a “problem” with Russia.

“The wreckage and the

COURTESY OF THE EUROPEAN PARLIAMENT

Sikorski calls for EU help over Smolensk wreckage return

Polish Foreign Minister Rados∏aw Sikorski black boxes are our property and we have been demanding their return for many months now. We have the right to do that,” said the foreign minister. He added that he had brought up the issue with his Russian counterpart two

weeks ago but had received the “same” answer – namely that the wreckage must remain in Russia until the end of the investigation.

“If there was enough goodwill, pressure and a political decision, the wreckage could

return to Poland,” he added.

Asked if he was disappointed by Ms Ashton’s office’s laconic statement that she had “received the request” the minister said what counted was the “final effect.”

Remi Adekoya

4

NEWS

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DECEMBER 17-23, 2012

Politics

North Korea

PiS holds march marking anniversary of martial law

Poland condemns ballistic missile launch

At a march organized last Thursday to mark the 31st anniversary of the imposition of martial law in Poland, Law and Justice (PiS) leader Jaros∏aw Kaczyƒski recalled those who had suffered during the crackdown, and attacked the current government.

Martial law, which was implemented by communist leader General Wojciech Jaruzelski, remained in force from December 13, 1981 to July 22, 1983. During that time, many opposition members were arrested and around 100 people were killed by the military.

“We must remember and thank all those who took up the fight after December 13,” Mr Kaczyƒski said.

At the march, which was attended by a few thousand people, Mr Kaczyƒski thanked the democratic opposition Solidarity movement and other organizations, who refused to “put their hands down and said, ‘We won’t allow this.’ ”

COURTESY OF THE EUROPEAN COMMISSION

Its leader Jaros∏aw Kaczyƒski took the opportunity to lambast the current government

Law and Justice leader Jaros∏aw Kaczyƒski Political overtures Mr Kaczyƒski gave two speeches during the march, attacking the current government saying that the independence of Poland is for sale and freedom in the country is limited.

“We [the country] will prevail only if our citizens can live in a free, independent and strong country,” he said during the march. He added that in January PiS will vote for a motion of no confidence

against the Civic Platform (PO) and Polish People’s Party (PSL) government coalition.

President Bronis∏aw Komorowski said last Thursday in Bia∏o∏´ka Prison, where he was incarcerated in 1981, that the martial law anniversary should not be celebrated but remembered. It should be a subject of “profound reflection on the past, present and, above all, on the future of our freedom and the freedom which exists throughout Poland,” President

Komorowski added.

Prime Minister Donald Tusk, a member of the opposition back in 1981, remembered December 13 and compared it to a personal end of the world, when all hopes for freedom had faded and many opposition leaders had been incarcerated. In a video posted on the PM’s website, Mr Tusk said that he hoped December 13 was a lesson for future generations.

Marta Mardosz

Tension is building over North Korea’s growing nuclear capabilities Poland’s Ministry of Foreign Affairs last week expressed its “strong protest” against the launching of a ballistic missile by the Democratic People’s Republic of Korea, an action which raises the stakes in the standoff over the North Korean nuclear threat.

North Korea successfully launched the long-range rocket, carrying a weather satellite into space, leading to widespread condemnation from the international community.

The US and its allies say the launch is a test of banned ballistic missile technology capable of carrying a nucleartipped warhead as far as California.

In a follow-up to a North Atlantic Council statement earlier in December, Poland again called on North Korea to comply with Security Council resolutions as well as to return to the six-party talks and to resume cooperation with the International Atomic Energy Agency.

As a member of the Neu-

tral Nations Supervisory Commission, which has been operating on the Korean Peninsula for 60 years, Poland has called upon Pyongyang to cease all activities that jeopardize stability, increase tensions in the region and constitute a cause for concern for the international community.

The White House called the launch a “highly provocative act that threatens regional security,” and the UN condemned the launch saying it would urgently consider “an appropriate response.” Even Pyongyang’s most important ally, China, expressed “deep concern” prior to the launch.

Despite UN resolutions banning North Korea from developing nuclear and missile-related technology, new leader Kim Jong-un, who took power one year ago, is believed to be continuing the “military first” strategy implemented by his father Kim Jong-il. The state is believed to have stockpiled a limited range of nuclear weapons that it is looking to expand.

A North Korean Foreign Ministry spokesman said that the rocket was a “peaceful projGP ect,” Reuters reported.

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BUSINESS

DECEMBER 17-23, 2012

www.wbj.pl

5

Airlines

The carrier has found itself in a deep financial hole, and its CEO has been forced to carry the can

red, too – hence the request for aid.

The situation culminated last week in the dismissal of Marcin Piróg, who had been LOT’s CEO since October 2010.

In September, Mr Piróg said the financial condition of the company was good in comparison with other European carriers, adding there was absolutely no possibility of bankruptcy and that he expected earnings to jump by tens of millions of z∏oty by the end of 2012.

However, LOT has been unable to turn the corner due to strong competition from low-cost rivals such as Ryanair and Wizz Air, and has also had

Polish state-owned carrier LOT Polish Airlines has requested almost z∏.400 million in state aid, although the troubled company’s demands could rise to more than z∏.1 billion, according to local media.

The request took many by surprise, given LOT had been expected to book a small profit for 2012 after years of losses. It has now however been revealed that the carrier is expected to end this year in the

to deal with the rising cost of fuel.

“The responsibility for the situation lies with the president of the company,” said Treasury Minister Miko∏aj Budzanowski the day before Mr Piróg’s dismissal was announced.

State aid Treasury spokesperson Katarzyna Koz∏owska said that for the last month, the Ministry has been working on ways to assist the company, which is now preparing a restructuring plan.

“If the state is to help, then that help must make sense,” Pawel Tamborski, deputy treasury minister, told the IAR news

Automotive industry

Fiat plans to lay off 1,500 at Tychy The government has declared its support for Poland’s ailing auto industry

Government to the rescue The Polish government responded to Fiat’s decision by initiating discussions with the company and unveiling a program aimed at bolstering Poland’s troubled automotive industry.

New Minister of Economy Janusz Piechociƒski said the government would fight to save the jobs of employees working at the Tychy plant and would propose a new flexible employment scheme comprising part-time contracts, in

LOT is looking for a new pilot, after company president Marcin Piróg was sacked last week agency. “The restructuring program is supposed to lead to the airline paying its own way.”

The company is expected to receive the first installment as long as it agrees to a sharp

reduction in costs, and to lay off 600 of its 2,000-strong workGareth Price force.

Alior makes strong debut on WSE Alior Bank’s shares gained nearly 7 percent on their first day of trade on the Warsaw Stock Exchange, in what was Poland’s largest initial public offering by a privately-controlled company.

Each share was issued at z∏.57 and the stock value grew 6.84 percent on the day last Friday, having risen as high as

z∏.61.80.

The value of the IPO was z∏.2.1 billion, with the bank itself gaining z∏.700 million in the offering.

Approximately 50 percent of the newly acquired capital will be invested in loans for individual households in the form of consumer loans and consumer finance, while the

rest will be spent financing Polish SMEs and new distribution channels.

Carlo Tessara, the investment vehicle of Romain Zaleski, the investor behind Alior, sold z∏.1.4 billion of its shares and intends to sell its remaining 34 percent stake in 2013.

Beata Socha

> Establishment of companies > Accounting services > Payroll and human resources > Law and notary offices > Payment recovery and debt recovery > Permits for foreigners > Seat for the company

COURTESY OF WIKIMEDIA COMMONS

Fiat Auto Poland (FAP) announced earlier this month that it plans to lay off 1,500 workers at its car plant in Tychy, in southern Poland. The process is due to start in January 2013 and will affect onethird of all employees, as well as Fiat parts suppliers.

FAP’s management said low demand due to the economic crisis was behind the decision, as was the earlier decision made to cease production of the Fiat Panda Classic at Tychy.

A production forecast by FAP indicates a reduction in output from 300,000 cars this year to 250,000 in 2013. Management decided that this level of production requires fewer workers.

The company also plans to change the working schedule from three shifts to two shifts.

A headcount reduction had been expected by automotive industry analysts and workers unions for a few months. However, the scale of the planned layoffs is larger than most had predicted.

COURTESY OF WARSAW CHOPIN AIRPORT

LOT asks state for aid, fires CEO

New Economy Minister Janusz Piechociƒski is seeking to soften the blow of Fiat’s layoff plans place of the planned layoffs.

Later in the week, Minister of Labor W∏adys∏aw KosiniakKamysz unveiled proposed changes to the labor law, which would allow employers to hire workers on more flexible conditions and not pay overtime in certain cases.

The government also plans to look for production partners in the Czech Republic’s automotive industry. Mr Piechocinski told reporters that the government discussed the possible employment of skilled workers from Fiat at a Skoda plant in the Czech Republic.

The economy minister added that the government would support production in the automotive industry, rather than sales.

When it comes to investments, the government says the automotive industry is its highest priority. The state will

continue to support investments and the expansion of Special Economic Zones in southern Poland, especially around Kraków and Katowice, that host automotive production plants.

Poland’s automotive industry has been suffering of late following plummeting demand in Western European markets.

With this in mind, Mr Piechocinski also announced that the government would transfer z∏.15 million to General Motors, which operates the troubled Opel plant in Gliwice, saying it would allow it to continue its investment. However, TVN24 later reported that GM was in line to receive the money anyway due to an earlier-agreed contract with the state. The company does not plan to increase employment at the plant and will not change the shift-schedule it operates there. Marta Mardosz

www.bilans.eu BILANS Accounting and Consulting Company Ltd., 02-729 Warszawa, 195 Rolna st., tel. (+ 48) 22 212 86 27-29, mobile: (+48) 502 057 107 e-mail: Jacek@bilans.eu

6

BUSINESS

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DECEMBER 17-23, 2012

Telecommunications

Gas stations

Polish telecoms market shrinking, new report says

Shell to purchase Neste Oil’s Polish retail stations

Saturation and regulatory changes have hurt growth prospects The value of the Polish telecommunications market is expected to shrink slightly for the second year in a row, according to a report by PMR Research.

Telecommunications operators’ revenues on mobile, landline and data-transmission services, which were valued at z∏.38.8-40.8 billion annually between 2008 and 2012, were down by 0.4 percent in 2011 and are expected to decrease by 0.8 percent this year to z∏.38.5 billion.

PMR predicts that in 2013 the value of the market will continue to shrink, since saturation is making it difficult for market players to generate higher revenues.

“Given the growing saturation on the telecoms services market now and the regulatory changes introduced, a market player that rather than earning higher revenues only manages to protect its revenues from reduction and to maintain its profitability at a level recorded

previously should already be considered successful,” PMR wrote.

The research agency also said that 2011 was a year in which key telecommunications players struggled to report revenues similar to the previous year’s. Growth in 2010 mostly resulted from acquisitions or from companies focusing their operations on data transmission and payTV services.

Mobile revenues are still the most important for the Polish telecommunications market, totaling z∏.25 billion in 2011 and representing 65 percent of the entire market.

The Polish mobile telecommunications market still remains one of the most attractive segments of the overall market, according to PMR. Although revenues for voice and text services are falling, driven down by, among other things, a reduction of mobile termination rates, telecommunications companies are generating revenues by implementing payTV services and extending data services.

Telecommunicating growth Value (in z∏oty) and growth rate (%) of the telecommunications services market in Poland, 2008-2012

Value

Growth

*Estimate

50

The deal, worth around €80 million, gives the Anglo-Dutch company a further 105 retail facilities

40 30 20 10 0 2008

2009

2010

2011

2012* Source: PMR Research

Big players getting smaller PMR notes that the largest four telecommunications players in Poland (namely Orange Polska and the top three mobile operators – PTK Centertel, Polkomtel and Polska Telefonia Cyfrowa) are seeing their market share fall, albeit gradually. The reasons include growing competition in the market, measures taken by the regulato-

ry authority and development of own infrastructure by other market players.

Although the four giants still control the largest share of the market, their slice of the action is gradually falling every year. In 2011 the four companies held 77 percent of the telecoms market, compared to 79 percent in 2010 and 85 percent in 2009. ●

Marta Mardosz

Shell Polska has inked an agreement to take over Finnish Neste Oil’s gas station network in Poland for approximately €80 million, beating out rivals PKN Orlen and Lotos to make the purchase.

The deal, which covers 105 locations, all of which are unmanned and located in major cities, is subject to the approval of Poland’s competition authorities, but is expected to close during the first half of next year.

“Our aim is always to be among the top three in all our retail markets, and unfortunately we never succeeded in reaching this nationwide in Poland,” Sakari Toivola, Neste Oil’s executive vice president, oil retail, said in a statement.

“The financial performance of Neste Polska was also below our expectations. Together,

these factors led to our decision to sell Neste Polska, and end our more than 20-year retail presence in Poland,” he added.

Earlier in the year, Poland’s second-largest oil refiner, Lotos, launched talks concerning the purchase of Neste Oil’s Polish gas stations.

“The sale process has launched. The subject is being analyzed by us,” Mariusz Machajewski, vice president of the board at Lotos, told Parkiet at the time.

Rival Orlen, which operates by far the largest chain of gas stations in Poland, also announced an interest in those assets.

Before Shell’s purchase of Neste Polska’s sites, it was virtually neck-and-neck in third place with Lotos in Poland’s gas-station market, according to data from the Polish Organisation of Oil Industry and Trade.

Neste Oil Corporation is a refining and marketing company concentrating on lowemission, high-quality traffic Gareth Price fuels.

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The firm’s board has instead adopted a proposal for cooperation with the banking giant The management board at state-run post office Polish Post (Poczta Polska) has rejected an offer from PKO Bank Polski for the purchase of its subsidiary bank, Bank Pocztowy.

Polish Post spokesperson Zbigniew Baranowski told Rzeczpospolita that the board has instead adopted a proposal for cooperation with PKO BP, while preserving the bank’s current share structure. Working groups between the two entities – both of which are controlled by the Treasury Ministry – are to be established, Polish Post wrote in a statement.

PKO BP currently holds some 25 percent of Bank Pocztowy shares and was looking to buy roughly another 50 percent.

According to Mr Baranowski, Polish Post’s management believes keeping Bank Pocztowy under the existing umbrella of the Polish Post

COURTESY OF WIKIMEDIA COMMONS

THE BEST SOLUTION TO AUDIT AND ACCOUNTING

Post Office rejects PKO BP bid for Bank Pocztowy

The Polish Post wants to establish working groups between PKO BP and Bank Pocztowy maximizes its value financially and socially.

“Keeping Bank Pocztowy in the group increases the chances that Polish Post will ensure the stability of the national postal network, which is of fundamental importance for the provision

of a universal postal service,” said the firm’s president, Jerzy Jóêkowiak.

“This is also an opportunity to simplify and expand access to services provided by government and e-government solutions in the future,” GP he added.

FINANCE & ECONOMICS

DECEMBER 17-23, 2012

Inflation

In line with market expectations, Poland’s rate of consumer price index (CPI) inflation fell significantly, from 3.4 percent measured annually in October to 2.8 percent in November, the country’s statistics office said last week.

The lower figures were mainly

the result of slower growth in the prices of fuel and food.

The market had forecast CPI to come in at 2.9 percent.

Inflation in Poland is now the lowest it’s been in two years, further indicating that the economic slowdown continues to have an effect on Poland’s economy. Indeed, the drop of 0.6 percentage points indicates that the slowdown is having a significant impact.

The drop from September to October was 0.4 percentage points.

The news means Poland’s

Steep drop Poland's CPI inflation rate (y/y, %), November 2010-November 2012

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inflation rate remains within the National Bank of Poland’s target range of 1.5-3.5 percent for the second month running, after it had been higher than the target for the first nine months of the year. The Monetary Policy Council, the interest rate-setting arm of the NBP, has lowered the country’s reference interest rate by 25 basis points for two months in a row, to 4.25 percent, after raising rates in a highly criticized move in May, on fears that inflation was rising too fast.

“We expect CPI to fall to 1.7-1.8 percent in Q2 2013, and thus well below the inflation target,” said Piotr Kalisz, head of Central and Eastern European economics at Citi Research. “That prospect should give the Monetary Policy Council an excuse to further cut interest rates in the direction of 3-3.25 percent in 2013,” he added.

Poland’s historic-low reference interest rate is 3.5 percent, which was in place for an 18-month period between July 2009 and December 2010.

Andrew Kureth

Source: Central Statistical Office

Moody’s holds Poland’s credit rating stable at A2 Moody’s Investors Service affirmed its rating of Polish bonds at A2 (the sixth highest level) with a stable outlook, the agency said in a statement last week.

The main factor behind the decision was “the govern-

ment’s significant progress on fiscal consolidation and its continued commitment to ensuring the sustainability of its public finances, despite a deteriorating macroeconomic environment,” the agency wrote in a press release.

7

Poland cuts forecast for economic growth in 2012

CPI takes big drop as slowdown hits hard Economists expect a further slowdown in months to come, leaving room for further interest-rate cuts

www.wbj.pl

In addition, the agency noted that Poland’s “debt ratios have begun trending down in 2012 following a peak in 2011 when the debtto-GDP ratio reached 56.4 percent.”

RG

Poland’s Economy Ministry reduced its forecast for the country’s 2012 GDP growth to 2.3 percent from 2.5 percent, following a series of disappointing economic data. Ministry analysts dropped their total forecast for domestic consumption growth to 0.8 percent

in 2012 from the previously forecast 1.6 percent. That included a cut in the forecast for individual consumption growth to 1 percent from 2 percent. Gross fixed capital formation is expected to increase by 1 percent this year compared with the 2.2 percent

recorded in 2011. The ministry expects industrial production to increase in 2012 by 2.3 percent, compared to 4.6 percent in the previous forecast, while construction output will rise by 1 percent from the 3 percent predicted earlier.

RG

Sejm passes 2013 budget bill Poland’s lower house of parliament, the Sejm, has passed the latest draft of the budget bill for 2013. The new budget assumes that the deficit will not exceed z∏.35.57 billion, while revenues will amount to z∏.299.38 billion.

Following the vote, Finance

Minister Jacek Rostowski was quoted by TVN24 as saying, “Thanks to this budget, by the end of the year we will probably see a decline in the debt-toGDP ratio. I am convinced that we will see the same thing next year. Security during this time

of crisis will be the basis for growth in the second half of 2013.”

The budget bill was passed late last Wednesday with 233 MPs voting for, and 221 voting against.

RG

Wages and production unlikely to grow next year Entrepreneurs are rather pessimistic about 2013, according to a study by the InfoMonitor Economic Information Bureau.

They do not expect an increase in wages or production. Few

managers plan new investments.

“The strategy is to wait it out,” said Mariusz Hilebrand, the head of Infomonitor. Mr Hilebrand added that that the

biggest problem for businesses is cash flow, or delays in payments. A quarter of the companies surveyed declared that only 25 percent of payments are RG made on time.

Finance minister criticizes Monetary Policy Council Polish Finance Minister Jacek Rostowski has stated that the country’s weak economic growth in the third quarter of this year was the effect of poor decisions made by the National Bank of Poland’s interest rate-setting arm, the Monetary Policy Council (RPP).

In May this year, the RPP raised Poland’s benchmark interest rate by 0.25 percentage points, a decision that was criticized by some market analysts at the time.

Not all economists, however, agree with Mr Rostowski’s evaluation. “While I agree with the opinion that

RPP contributed to the slowdown of the economy by raising the interest rates unnecessarily in May of this year, I don’t think it was a decisive factor, but merely an additional one,” said Piotr Bujak, chief economist at Nordea Bank.

RG

8

INTERVIEW

www.wbj.pl

DECEMBER 17-23, 2012

Serbia

Negotiating change Ewa Boniecka: Serbia has candidate status for membership of the European Union and wants to set a date to open negotiations with the EU on this matter. How do you see the present situation in the EU and the possible timing of Serbia’s accession?

Radojko Bogojevic: Being a European country we want to be a member of the European Union and we are doing our best to prepare ourselves for such negotiations. We are of course fully aware that the EU now finds itself in a difficult situation, not only due to the financial crisis, but also because of feelings of fatigue in the EU. But we are determined to do our homework, so we are ready to start negotiations concerning our membership, which we hope will open some time next year.

Coming out from the current crisis is in the interest not only of present EU members but also of countries such as

Serbia which are preparing to become members. And judging by some evaluations we may see the end of the tunnel at the end of 2014. While battling the present crisis, we all know and value the fundamental and lasting fact that the European Union is a unique organization, crucial for maintaining peace and prosperity in Europe and we see Serbia’s future in that community.

Serbia’s road to fulfilling that wish has been long and difficult, being burdened by memories of the Balkan Wars, and now the latest verdicts of the International Criminal Tribunal in The Hague, which decided that two Croatian generals and an official from the Kosovo Liberation Army are not guilty of the crimes they were accused of committing. These rulings have led to protests in Serbia, with some burning EU flags in Belgrade. What is your take on the situation?

First of all, I want to point out that Serbia cooperated closely with the International Criminal Tribunal in The Hague; we did everything we were asked, the most-wanted former officials from Serbia were delivered to the Tribunal and subsequently punished. We are continuing our cooperation with the Tribunal, but obviously we are not happy with its [latest] verdicts.

The people in Serbia have been disappointed because everybody feels that justice was not done. ... All those who committed crimes during the Balkan wars should be declared guilty and the latest verdicts of the Tribunal will make reconciliation among us who live in the Balkans much more difficult. We know in Serbia that over 2,000 civilians were killed in Croatia and over 200,000 were expelled, so we want all those who committed crimes everywhere to be punished, including those from Kosovo. We expect now to open a debate in the UN General Assembly about those verdicts, which, while being unalterable, can be examined by the international community.

As to the burning of EU flags in Belgrade … it was carried out by members of the Radical Party, which from the beginning had a negative approach towards the EU. Now, being outside of parliament, that party is completely marginalized.

How would you describe the general attitude of the Serbian people towards the European Union?

After democratic changes in Serbia starting in 2000, the expectations from the EU and the West towards Serbia were very high. Back then, over 80 percent of our population supported integration with the EU. Now, that percentage has come down to 5060 percent because of tough EU measures taken against Serbia. But still the majority of Serbs are in favor of joining the EU and it is our government’s political goal to obtain a date for starting negotiations with the EU about our membership.

How long do you think Serbia will take to negotiate the terms of its membership?

COURTESY OF THE EMBASSY OF THE REPUBLIC OF SERBIA

Radojko Bogojevic, the Republic of Serbia’s ambassador to Poland, talks to WBJ about Serbia’s political and economic situation, its drive for membership of the EU and its ties with Poland

Radojko Bogojevic says joining the EU is Serbia’s priority It is difficult to say now, since Serbia is dealing with reforms to its legal and judicial system, fighting corruption and dealing with other issues required of it by the EU Commission.

We look at Slovakia, which negotiated its membership for five years and was in a some-

what similar position to Serbia’s, having been in a difficult political situation at the start of negotiations. We cooperate closely with Slovakia in order to learn from its experience in negotiations, but for how long we negotiate depends not only on us, but also on others.

Idea – business – success! Zacznij.biz Zacznij.biz – idea – business – success, is a business competition organized by the Polish Confederation atio on of Private e Employers Lewiatan Lewiattan and Lewiatan e an Business Angels. On December 1, 2012, 2 the third edition of the Zacznij.biz competition was launched. The idea behind the contest is to promote entrepreneurship, trrepren neurship, ass assist s in preparing b sist business usiness plans nss and a attract investors – business angels – to work with the best ideas.

The prize for those who enter the best ideas into the competition is to interest potential investors from Lewiatan Business e ess Angels. The e competitions competitio tions itself is a unique opportunity for entrepren entrepreneurs. neurs. A good n idea is a necessary but not sufficient condition to receive funding – the ability to execute, experience, commitment (including ud uding a financial financia al commit commitment), mitment), and a properly written business plan are of o key importance. Many entrepreneurs underestimate the importance of having the idea properly thought through and presented o on paper. Cont Contestants testants nts can take part in several free training sessions and d workshops conducted by experienced experts cooperating with Lewiatan Business Angels. In addition, participants will have a chance ce c to prepare re a comprehensive co business plan and acquire the knowledg knowledge ge and skills g for effective presentation of their business ideas.

Zacznij.biz – idea – business – success, is aimed at: • micro- and small enterprises with big growth potential, operating in the hi-tech sector, seeking to raise capital for development opment and opme d implementation imple implemen me tation of new technologies tech echnol nologi ogies e • academics: researchers, graduate students and students of technical universities, who want to commercialize their innovative va vative ive ideas • entrepreneurs with the projects operating in the ICT sector with global growth potential To participate in the competition, register at www.zacznij.biz.pl and fill in the proper form available on the website. Applications ns are ar being ng accepted a from December 1, 2012 to January 31,, 2 2013.

013 The most promising ideas will be presented at the Final Gala in May 2013.

Last two editions saw over 300 projects submitted representing different business sectors. The finalists from previous editions are i.e. Homplex plex and d Egzotech.

E Organizers of the competition: PKPP Lewiatan The Polish Confederation of Private Employers Lewiatan (PKPP Lewiatan) was established in January 1999 as a nationwide representation of employers to the e sta state tate and trade unions unions. ns. Tod Today day it is an organization of 62 sector and regional associations of private employers and 25 individual members. Thus, in total, about 3,750 companies employing over 700,000 workers rkers ers are a represented represen ented by

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Le Each association is an autonomous organization that brings together individual enterprises, each possessing its own statute and management.

For more information visit: www.pkpplewiatan.pl Lewiatan Business Angels Lewiatan Business Angels (LBA) is the most active Business Angel network in Poland. It was established in 2005 with the use of EU funds under the brand of the Polish Confederation ed deration of Private Emp Employers mote Business A Lewiatan. LBA matches entrepreneurs who have innovative ideas and ambitious development plans with private investors (so called Business Angels). Its main goals are to prom promote Angels investing in Poland, to match private investors with companies seeking funding for growth, to exchange experience and to encourage best practices.

For more information visit: www.lba.pl

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INTERVIEW

DECEMBER 17-23, 2012

One of the most difficult political problems linked with the negotiations is the fact that Serbia does not recognize the independence of Kosovo, while the majority of EU members – among them Poland – recognize it. What solutions do you see to this matter?

The unilateral declaration of independence for Kosovo is a very sensitive matter for us.

Kosovo has special meaning for Serbia’s heart and we are not happy that many countries recognize the independence of Kosovo.

But we have managed to find a formula to allow us to move on with our cooperation.

It is based on the “agree to disagree” formula, and it opened the way for cooperation in other matters and is accepted by the EU. Do you think that diplomatic measures will be found to solve the Kosovo problem?

Serbia wants to be a member of the EU and Kosovo, which we do not recognize as a state, can also move towards integration with the EU. That’s why our prime minister and the prime minister of Kosovo are conducting talks, with the assistance of the European Union and also the US. These talks are very important when it comes to the issue of Serbia and Kosovo one day becoming members of the EU. So we have to cooperate and one of the conditions for Serbia to have a date to start negotiations over our membership is to establish good relations with our neighbors, including Kosovo.

How does Serbia’s economic situation look currently?

We have a not-deep, 1 percent GDP contraction. Before the crisis began in 2008, our GDP grew very rapidly – it was at 78 percent per year. But the EU crisis had a big negative effect on our economy. Yet our recently adopted 2013 budget predicts that our GDP will rise 1 percent and we have attracted some foreign investments – for instance, Fiat will start producing cars in Serbia and there are some other big economic projects to help boost our economy.

Tough negotiations over the next EU budget are currently ongoing, and there are deep divisions among members.

How do you see the situation from Serbia’s perspective?

It will not be good for us if the EU develops at two speeds and I have an uneasy feeling that the EU could split into rich and poor countries, which would be damaging for the countries of our region and for the development of the whole EU. So the members should talk about this and try to find a compromise for fixing the next EU budget and defend the interests of less affluent mem-

bers, and here Poland plays a very active role, which we appreciate.

Serbia does not want to become a member of NATO, preferring instead to stay militarily neutral. What does this mean in practice, when you cooperate so closely with NATO in maintaining your security?

We have our parliament’s declaration that Serbia should be a militarily neutral country.

We never say it is forever, it is for the time being – what the future will bring, nobody knows. Now we are in the Partnership for Peace with NATO, we are cooperating concerning Kosovo’s borders and we want to use all opportunities for cooperation within the framework of the Partnership for Peace.

During the Balkan Wars and the bombing of Serbia by NATO in 1999, your economy and infrastructure were heavily damaged. Are you thinking of applying to NATO for compensation?

We do not think at all about such claims. After the war and the subsequent political changes in our country and after Serbia surrendered Slobodan Milosevic to the Tribunal in The Hague, Serbia began to be seen in a favorable light by the West. Those members of NATO who took part in the heavy bombing of our country, seeing the scale of the

“Poland is an example of success for us and proof of how important it is to be a member of the European Union.” destruction, began to develop a guilty conscience and provided us with loans for reconstruction. Many official buildings in Belgrade were rebuilt with financial help from the US, Germany, and other countries. We consider the matter of the bombing a closed chapter.

Serbia has very good relations with Russia, which has not recognized the independence of Kosovo and is developing very close economic cooperation with your country. This includes your participation in bringing Russian gas to Serbia through the South Stream pipeline built by Gazprom. In your view, what do these political and economic ties with Russia mean?

Serbia is a small country and we have to build friendly ties with everyone. Firstly, we are building such ties with our neighbors and our priority is cooperation with the European Union and becoming a member of the EU. The Euro-

pean Union is developing the best possible relations with Russia, which is in our common interest. It is also important to bear in mind that the former Yugoslavia was never a part of the Eastern Bloc, dominated by Moscow – it belonged to the group of nonaligned countries. We have no historical complexes towards Russia; we are both Orthodox Christian, there are no obstacles to the development of our mutual economic cooperation. But while developing good relations with Russia, our own interests are paramount. Secondly, we want to be independent in our relations with any big power in the world.

How do you see bilateral relations between Serbia and Poland?

They are very good, our political relationship is very ... close and Poland is supporting us in our efforts to join the European Union. In the field of economics our relations are progressing, but still our mutual trade is at a low level. Last year its value was €600,000 ... and 60 percent of the trade was in Poland’s favor. Yet our trade turnover was even smaller three or four years ago, so I am satisfied that it is growing and hope that our mutual trade will keep increasing, and that Poland will explore the possibilities for investing in Serbia.

How do you react to the fact that the European Union was awarded the Nobel Peace Prize at a time when many are lamenting the EU’s failures?

I have served as ambassador to Poland for three years and I see how much Poland is developing and modernizing.

Poland is an example of success for us and proof of how important it is to be a member of the European Union. Now, when the European Union has been awarded the Nobel Peace Prize, I think that it will lift the spirit of the EU, its feeling of solidarity at this time of crisis.

Serbia and other countries in the Western Balkans, which want to become members of the EU, are doing it primarily because it will bring peace to our territories and help our development.

We know that each member of the EU forfeits certain elements of their sovereignty to the common EU institutions and the same will apply to Serbia. But the European Union brings security and stability in Europe and how the further integration of the EU progresses and how the EU’s mechanisms develop in the future is now the subject of deliberation among all members. We want Serbia to take part in this debate after becoming a member and we believe in the enlargement of the European Community. ●

www.wbj.pl

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DECEMBER 17-23, 2012

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11

A faux pas from Sikorski?

Remi Adekoya

F

oreign Minister Rados∏aw Sikorski is one of the more intelligent members of Poland’s government. He has given some good speeches on his country’s place in the world as well as the direction Poland and the EU need to take to make progress in the future.

“Some politicians say the Russians are purposely keeping the plane in order to fuel divisions within Poland.”

But he has also made a series of faux pas such as when he likened the Nord Stream pipeline project, which carries gas directly from Russia to Germany, to the Ribbentrop-Molotov pact. Or when he talked about

not returning the wreckage. They say they need to keep it until Russian prosecutors’ investigations are over.

But early last year the Russiancontrolled Interstate Aviation Committee released its version of events that led to the fatal crash and so the case seems closed from the Russian point of view. But despite numerous appeals from Poland’s government, including from Prime Minister Donald Tusk himself, they have still not returned the wreckage, which is symbolically very important for Poles.

But it is doubtful that Ms Ashton will be able to help in this matter.

Rather, bringing the EU into the matter could serve to stiffen Russia’s position and have them use the plane wreckage as a bargaining chip in negotiations with the EU. For Russia, Mr Sikorski’s move gives them a great opening. Asking for outside help is also an admission of defeat by Poland’s diplomacy. It is similar to moves made by Law and

“finishing off the hordes” in reference to his political opponents from the Law and Justice party.

Last week, Mr Sikorski announced that he had asked Catherine Ashton, the EU’s High Representative, to bring up the matter of the unreturned plane wreckage from the fatal April 10, 2010 flight in which then President Lech Kaczyƒski and 95 others perished. The plane crashed in Smolensk, on Russian territory, and the wreckage has not been returned to Poland yet despite the fact that the Russians have finished their official investigation into the crash.

A plane wreckage as a bargaining chip Politicians across the divide have voiced opinions that the Russians are purposely keeping the plane in order to fuel political bickering and divisions within Poland. That may be true, and indeed the Russians have given no convincing explanation for

Justice when it was in government (2005 -07) to bring in the EU to solve the problem of a Russian ban on imports of Polish meat.

Sure, German chancellor Angela Merkel brought up the matter in a meeting with Vladimir Putin, but did the Russian president back down after that? No, he didn’t. And the meat import issue was definitely more suited for EU intervention than the matter of a plane wreckage.

Also, if Russia were to suddenly agree to return the wreckage now that would be tantamount to admitting that they had been telling fibs when they said they could not return it because of ongoing investigations.

It is difficult to believe they would want to contradict themselves in that way.

“This is confessing to helplessness. I doubt Mr Putin will change his course of action,” said Hanna Gronkiewicz-Waltz, Mayor of Warsaw and deputy leader of PO. Politicians from other parties meanwhile, have blasted the idea almost unanimously. Of course, if Ms Ashton is able to secure the timely return of the wreckage Mr Sikorski will be able to claim victory.

But the question is at what cost?

Vladimir Putin is unlikely to give Poland something he sees it wants badly without an expensive quid pro quo. And if the Russian leader doesn’t budge but only hardens his position, then Poland’s foreign minister will have succeeded in making not only his country but the whole EU look helpless and weak in its relations with Moscow. ●

Confessing to helplessness

Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

Even politicians from Mr Sikorski’s party, Civic Platform (PO), are critical of his latest idea.

Greece’s bogus debt deal Ashoka Mody

T

he process of official forgiveness of Greek debt has begun.

Referred to as “official sector involvement” (OSI), it includes several initiatives aimed at reducing Greece’s debt-to-GDP ratio to 124 percent in 2020, from roughly 200 percent today. Even as the deal was announced, however, newspaper reports suggested that officials recognized that the measures would be insufficient to meet the target; further negotiations on additional steps would be needed at a politically more convenient moment.

The economist Larry Summers has invoked the analogy of the Vietnam War to describe European decision-making. “At every juncture they made the minimum commitments necessary to avoid imminent disaster – offering optimistic rhetoric, but never taking the steps that even they believed could offer the prospect of decisive victory.”

Ahead of the curve This strategy needs to be inverted – and Greece offers a real opportunity to get ahead of the curve. Instead of driblets of relief, a sizable package, composed of two elements, is the way forward. First, as Lee Buchheit, the attorney who oversaw the Greek pri-

vate restructuring, has proposed, maturities on official Greek debt could be greatly extended. A simple structure would be to make all debt payable over 40 years, carrying an interest rate of 2 percent. This would move Greece and its official creditors beyond the continuous angst that now prevails.

The second element of the debtrelief package would be more innovative: If Greece’s economy performs well, the generous extension of maturities can be clawed back or the interest rate raised. A formula for this could be linked to the debt-to-GDP ratio – a scheme with advantages that transcend the Greek case. The idea of linking debt relief to a country’s debt-to-GDP ratio has been around for a while, but has never gained significant acceptance. Applying it in Greece would be a highly visible test; if successful, it would set a valuable precedent.

Why bother? Because the very premise of the current deal and the expectations it sets out are wrong.

First, the notion that there is a smooth transition path for the debtto-GDP ratio from 200 percent to 124 percent is fanciful. Second, even if, by some miracle, Greece did reach the 124 percent mark by 2020, the

claim that its debt will then be “sustainable” is absurd.

Eroding credibility Thus, continuing down this path will further erode policymakers’ credibility – not that they seem to care – while imposing on the rest of the world a persistent sense of crisis and uncertainty, with real financial and economic costs.

Make no mistake: policymakers’ track record on forecasting Greek economic performance during the crisis has been an embarrassment. In May 2010, the International Monetary Fund projected – presumably in concurrence with its European partners – that Greece’s annual GDP growth would exceed 1 percent in 2012. Instead, the Greek economy will shrink by 6 percent. The unemployment rate, expected to peak this year at 15 percent, is now above 25 percent – and is still rising. The debtto-GDP ratio was expected to top out at 150 percent; absent the substantial write-down of privately held debt, which was deemed unnecessary, the ratio would have been close to 250 percent.

In September 2010, four months after the official Greek bailout was put in place, the IMF issued a pam-

phlet asserting that “default in today’s advanced economies is unnecessary, undesirable, and unlikely.” The conclusion was that official financing would carry Greece past its short-term liquidity problems. Calls for immediate debt restructuring went unheeded. Six months later, after substantial official funds had been used to pay private creditors, the outstanding private debt was substantially restructured.

Such were the errors committed over short time horizons. Relatively speaking, 2020 is an eternity away.

Even assuming better forecasts, the projection of 124 percent could be a gross underestimate. The precision of the numbers underpinning the deal is a facade, if not a reflection of an alternate reality.

And, again, even if Greece somehow did achieve the 124 percent milestone, its debt would still not be sustainable. At that point, Greece would merely be where it started in May 2010. The most reasonable comparison is with Latin American countries during their debt crises in the 1980s and 1990s. Despite significantly lower debt-to-GDP ratios and continuous debt restructuring, they eventually needed the large debt reduction that came with the issuance of Brady

bonds to achieve some breathing room.

Getting ahead of the curve will give Greece a realistic chance of controlling its own destiny. It will also be a reminder of the dangers of rushing

“Policymakers’ track record on forecasting Greek economic performance during the crisis has been an embarrassment.” in with official money where private debts have become unsustainable.

Staying the course, as Summers warns, will lead only to “needless suffering” before that course inevitably collapses, bringing Greece – and much else – crashing down. ● Ashoka Mody is a visiting professor of International Economic Policy at the Woodrow Wilson School of Public and International Affairs, Princeton University.

Copyright: Project Syndicate, 2012. project-syndicate.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

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COVER STORY

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Z∏oty among strongest currencies The z∏oty is now second in the ranking of currencies that have strengthened the most against the dollar this year, reports Parkiet.

Since the beginning of January, it has gained almost 10% against the US currency. The first place on this list is occupied by the Hungarian forint, which has appreciated by more than 12% so far in 2012.

The strength of the forint and the z∏oty results from this year’s loosening of monetary policy in the US and Western Europe.

z∏.18 billion for roads The General Directorate for National Roads and Motorways (GDDKiA) announced last week that 401 km of brand new road will be delivered in 2013, including 126 km of motorway and 235 km of expressway. The GDDKiA plans to spend z∏.18 billion next year, with z∏.15 billion earmarked for building new roads.

Some z∏.565 million will be spent on the modernization of old roads, and z∏.1.3 billion on the maintenance of existing roads.

Working for an apartment According to a report by Open Finance and Domy.pl, buying an apartment is the biggest challenge for the residents of Kraków.

With average earnings of z∏.2,514 (net), they have to work for some 11.5 years to earn enough money to purchase a 50-sqm three-room apartment, Dziennik Gazeta Prawna reported. And even though nominal prices are higher in the capital, with average earnings of z∏.3,289, its residents can afford a similar purchase after working for approximately 10.8 years. ●

DECEMBER 17-23, 2012

Economic relations

Poland missing out on a medical boom

Joanna Irzabek

India is luring investors to contribute to its growing medical sector, but Poland is reluctant to look east “Let them come here, we’ll guide them” said Murugesh R. Nirani, the state minister for large and medium-sized industries, sitting in his office in an imposing building at the Vidhana Soudha, the seat of the southern Indian state Karnataka’s government.

He was hosting a 10-plus strong investment delegation from Taiwan but found time to craft a message to the Polish business community. “Land, water, power, manpower, special packages,” he said. “We’ll help them with all that. I’m willing to send my senior officers to Poland. If they agree, I’ll come too.”

Karnataka has proven itself effective at attracting foreign investors from all continents. Bangalore, the state’s largest city, where India’s Silicon Valley is located, is known for its price-competitive potential and has attracted the biggest players in the IT world. Now it’s time to give some stimulus to other sectors, Karnataka’s authorities say. The medical sector is one of them.

Superhospital Since 2000 $1.3 billion has been invested in Indian hospitals and diagnostic centers, according to the Indian government. FDI inflow towards medical and surgical appliances stood at $521.6 million during the same period, and the drugs and pharmaceuticals sector attracted $9.2 billion in investment. Also, 2012 witnessed a record number of mergers and acquisitions in the Indian pharmaceutical and healthcare sector.

How does it look close up?

Narayana Hrudayalaya, a flagship private hospital in Bangalore and one in a chain of several such centers across

SHUTTERSTOCK

12

Some $1.3 billion has been invested in Indian medical centers since 2000 India, conducts 50 major heart surgeries daily and treats patients from 73 countries – even those with the most complicated heart diseases. With 30,000 beds planned in the next five years and one of the world’s largest telecardiology networks, the group aims to become a major health care player in the country. “In a nation of

Prioritized guests The All India Health Expo is expected to be one of the largest and most comprehensive sector trade fairs in India, targeted at a wide spectrum of medical players from home and abroad. Scheduled for January 2013, it’s expected to attract 100 exhibitors, 100 speakers and half a million visitors. The organizers are trying

“Land, water, power, manpower, special packages. ... We’ll help them with all that. I’m willing to send my senior officers to Poland. If they agree, I’ll come too.”

1.2 billion people, where up to 800 babies a day are born with heart problems, India needs 2.5 million heart operations a year,” the hospital’s chairman calculates. It’s clearly a brave new world for the Indian medical sector.

But are Polish players interested in joining in?

to lure Polish guests as well, offering the status of prioritized guests and free accommodation. The response has been less than overwhelming.

India’s share in Polish trade is miniscule: 0.21 percent in export and 0.55 percent in import in 2011, or $1.9 billion in total – a number that does

not reflect the economic potential of either country.

The main export items from Poland are machines, cast iron, steel, copper and chemicals, while imports are traditionally dominated by textiles and machinery. As of now, there are only two major Polish investments in the subcontinent: Can-Pack, a maker of metal packaging, and TZMO, a Toruƒ-based producer of hygienic products sold under the Bella brand. VTS, a ventilation systems manufacturer, has offices and logistics centers in India. That’s about it.

There is no Polish medicalsector related FDI in India yet.

‘Like bringing rice to China’ “It’s like bringing rice to China” said Dominik Wróblewski, co-founder of TCI Laboratories, a small Tri-citybased biotech company that produces generics and does research on innovative drugs.

He estimates that close to 90

percent of active and inactive ingredients used in drugs sold in Poland come from Asia.

India and China are flooding Europe with cheap raw materials for drug production. It’s also becoming a common practice for Western pharmaceutical companies to buy pills in bulk there and pack them in Europe.

With a new medical company created almost every day in India, there is hardly anybody in Europe able to produce price-competitive generics. In this equation Poland can only be the receiving end of the transaction – and perhaps a gateway to other European markets, Mr Wróblewski posited.

Generic maverick There are very few areas where Polish healthcare-sector companies can be competitive, analysts say. Many are either branches of international corporations or daughter companies whose interest is limited

COVER STORY

DECEMBER 17-23, 2012

to the Polish market. Those Polish companies that could think of investing abroad are too small and choose familiar European Union countries.

“With the exception of perhaps [insulin maker] Bioton, Polish companies do not have enough money to take over important players, neither in India nor elsewhere,” said Monika Stefaƒczyk, head of pharmaceutical market research at PMR. Those Polish medical companies that are present in India have one thing in common: they are innovative, hitech, globalized firms. Bioton, Poland’s first biotech company to be listed on the Warsaw Stock Exchange, PZ Cormay, a manufacturer of diagnostic

reagents and laboratory equipment, and Medicalgorithmics, which markets its own mobile arrhythmia diagnostic technology, all sell state-of the art medical solutions.

“If we had an innovative and patented drug, then we could think of going to India,” said Mr Wróblewski about the whole Polish pharmaceutical market. “But we have not registered any new drugs for a couple of decades now.”

“The Polish pharmaceutical sector is primarily generic”, Ms Stefaƒczyk said. “The same applies to India. But Indian generics are cheaper.”

Cash-strapped Heavily indebted Polish public hospitals that are facing

Polish medical companies in India: • Bioton: A biotechnological group with a global reach that produces a range of cephalosporin antibiotics and aminoglycoside antibiotics.

• PZ Cormay: A group of in vitro diagnostic (IVD) companies from Switzerland, Poland and Ireland, developing and manufacturing diagnostic reagents and advanced laboratory equipment.

• Medicalgorithmics: A hi-tech company in the telemedical sector with core competences in the development of advanced Digital Signal Processing (DSP) algorithms and the design of software and hardware electronics for medical applications.

commercialization in 2013 (and perhaps privatization later if that doesn’t work) are looking for ways to cut costs.

Could India be an answer?

As to that, the Association of Polish Hospital Directors has expressed some interest. But the foreign cooperation departments of public hospitals signal that the cost of making a trip to India which may or may not result in savings later, is something that the cash-strapped public institutions have to think hard about.

In theory, private clinics should have fewer inhibitions.

But they also have fewer incentives. As long as Polish private patients do not look for cheaper services abroad, there is no motivation to reduce treatment costs. Moreover, some fear that cooperation with, or outsourcing to, India could lead to Indian firms eventually taking over the market.

Long-distance relationship There are pockets of opportunities for producers of highend medical precision machines. Much of the medical appliances, especially lowend, are currently imported to Poland rather than exported, but Mr Wróblewski of TCI sees a chance for a few specialized producers of small-size medical appliances to export

to Asia. “We wish them luck,” he said.

Finally, there is education and R&D. Academic and scientific institutions like the Medical University of Gdaƒsk (GUM), the largest medical academic institution in northern Poland, with 6,000 students and topranking scientific research, confirm that they are actively seeking foreign students and scientific cooperation, including from Asia. But they are also cost-conscious. India is far away and there are other priorities to consider. GUM is one of 11 such bodies behind 43 teaching hospitals in Poland that may have to

“We are not prepared for this kind of competition.” transform into money-making commercial companies soon.

Experts say it’s not the lack of competitive edge that puts Polish companies at a disadvantage. The problem is that firms can only do business if they locate themselves in India for the long haul.

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Behind Europe’s shield While it’s true that the economic downturn has led some companies to hibernate instead of look for new opportunities in new markets, there might be other reasons for the lackluster reaction to the economic shift from Europe to Asia in Poland. Poland’s heavy export orientation toward the EU is one of them. “We are hiding behind the European Union’s shield,” said Tomasz Rapcewicz, sales representative at Queisser Pharma, a producer of dietary supplements Doppelherz and Protefix. “By ignoring India we are missing out not only on the Indian market but also on the attractive ASEAN countries that India could be a gateway to,” he added.

Poland’s social structure and its post-communist heritage might be other reasons.

Elderly and poor, many Polish patients would rather wait several months than pay extra, even for a simple medical service. That reality is reflected in the public health care policy that favors cheap generics and neglects innovative drugs. The

Sectors with potential for cooperation: • Niche high-end medical appliances • Dressing and hygienic materials • Telemedicine • Education • Scientific cooperation

13

Sectors where Poland is losing out: • Generics • Patented drugs • High-end medical appliances Polish health care sector could be easy prey for more aggressive players. “Indian companies are consumer-oriented, used to tough competition and offer good quality at a good price,” said Mr Rapcewicz, who has spent a month in India observing the sector’s market behavior. “We are not prepared for this kind of competition.” In this scenario, it’s not a question of if, but when Indian medical companies enter the Polish market.

A recent IMS Poland report reveals that the new refund drugs law (which takes about 1,400 drugs off the list of drugs that are refunded by the government) has caused havoc in the pharmacy sector, with several hundred drugstores forced to close and the system of drug distribution in dire straits. Patients are paying more and buying less.

Experts say it will force the sector to introduce new technologies and new business models. Can that also mean we are going to see more of the cheaper drugs made in India on Poland’s drugstore shelves? ●

14

LAW

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DECEMBER 17-23, 2012

Legal Forum

Personality rights of legal persons Pawe∏ Sterna Attorney at law Probably everyone has met with the concept of the protection of personality rights of individuals, but not everyone is aware that identical protection (with some modifications) is available for legal persons too.

Basically, Polish law provides for the protection of personality rights of individuals. However, legislators have now set forth the protection of personality rights of legal persons as well and the provisions on the protection of personality rights of individuals shall apply to legal persons adequately.

This is of key importance, because actions affecting the good name of a legal entity (like a company), through, for example, the publication in the press of false or unreliable and unverified information, exposes it to a loss of trust. Loss of trust can, for example, lead some partners to resign from using services

and/or goods provided by a company, and this results in material losses.

In the age of the internet this is becoming more and more important. Often you can find an example of a violation of one’s personality rights on the internet, where everyone feels anonymous and therefore unpunishable. You can also find violations of personality rights as an act of unfair competition made by a business competitor.

rights, effective towards everyone. Although these rights are intangible, the breach of them, in many cases, can cause notable material losses.

As an example we can enumerate the following personality rights belonging to legal persons: • a good reputation; • business name; • confidentiality of correspondence; • inviolability of premises.

The concept of personality rights

Protection of infringed personality rights

There is no legal definition of personality rights. However, according to the prevailing view it is deemed that the personality rights of legal persons are intangible goods thanks to which a legal person can function in accordance with its range of activities. A feature of personality rights is that they are absolute

In case of any unlawful infringement or threat of personality rights, the particular entity should take up specific actions immediately. Firstly, it should demand the cessation of such unlawful activities. In the event of infringement the injured entity may also demand that the person who committed the vio-

lation perform all the actions necessary to remove its effects, such as making an appropriate declaration in order to remove the effects of the infringement or financially compensate any losses which result from the activities infringing the particular personality rights. It is also

sponse. This applies both to the press, the television and as a rule to the internet press services. Rectification is an official denial and explanation of a false and inaccurate message that gets in to the public domain.

The editor-in-chief is obliged to publish rectification free of

“In case of any unlawful infringement or threat of personality rights, the particular entity should take up specific actions immediately.” worth pointing out that the injured entity can request that a specific amount of money is paid to a charity.

Press publishing Popular institutions for the protection of personal rights, both individuals and legal entities, are press rectification and re-

charge if it is factual and relevant to the facts. The editor-inchief is also required to publish a response to statements threatening personality rights. The text of the rectification or response shall not be longer than twice the volume of the particular material published in the press. ●

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market.

The content is created in consultation with Warsaw Business Journal's editorial staff.

Legal News Contact: Dorota Zab∏ocka dz@pnplaw.pl

New rules on settlement of tax deductibles From January 1, 2013 provisions of the Act of November 16 on Reduction of Some Administrative Burdens in the Economy (Journal of Laws: Dz.U. 2012, no. 0, item 1342) will become binding.

The act changes the Act on Personal Income Tax as well as the Act on Corporate Income Tax. The new provisions will concern the rules on settlement of tax deductibles in situations where the taxpayer fails to fulfill his/her financial obligations towards business partners.

In case the amount resulting from an invoice (bill) or from an agreement or some other document, if the issuance of an invoice (bill) was not obligatory, has been recognized as a tax deductible but has not been paid within 30 days from the date of expiry of the payment date, the taxpayer will be obliged to decrease the tax deductibles by the amount noted in the above-mentioned documents.

If after the decrease in the tax deductibles, the obligation is paid, the taxpayer increases the tax deductibles by the amount of the earlier decrease in the month when that obligation has been settled.

Minimum wage From January 1, 2013 the minimum monthly remuneration for work in Poland will amount to z∏.1,600. This is regulated by the ordinance of the Council of Ministers of September 14, 2012 with regard to the amount of minimum remuneration for work in 2013 (Journal of Laws: Dz.U. 2012, no. 0, item 1026).

Passport – not only at the place of domicile

DAILY EXECUTIVE DIGEST Poland A.M. gives you the biggest Polish stories of the day.

Have the most valuable news delivered to your inbox each weekday morning.

On December 6, the president signed the Act of November 16, 2012 on Changes to the Act on Passport Documents, aimed at simplifying procedures connected with the issuance of passports. Pursuant to the new provisions, passports and temporary passports in the Republic of Poland will be issued, or denied, by any voivode to whom the application for passport has been submitted and not, as it has been until now, the voivode charged with overseeing the place of permanent domicile of the person applying for the passport. Overseas, passports shall still be issued by consuls.

The new provisions will become binding 30 days upon their publication in the Journal of Laws. ●

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S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

Warsaw’s PowiÊle is increasingly becoming an attractive office location

A building permit has been granted to a new laboratory complex in Warsaw 16

17

LOKALE IMMOBILIA

W 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 ly s u p p l e m e n t o n re 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

Hotel chain B&B and BRE Leasing have signed an agreement concerning the refinancing of the B&B Warszawa-Ok´cie hospitality project in Warsaw through the sale and lease-back of the facility. The sale transaction is meant to facilitate the development of new B&B hotels in Poland. B&B is planning to open hotels in Wroc∏aw and ¸ódê in 2013 and 2014 respectively. In the next few years, the company also wants to open facilities in Kraków, Katowice, Poznaƒ, Gdaƒsk, Lublin and Warsaw.

New Warsaw outlet almost ready Developer Neinver Poland is finishing construction on its Factory Warszawa Annopol outlet center project in Warsaw. The largest scheme of its kind in the region, the center is scheduled to open for business in the first quarter of next year. “All floors and most walls in future tenants’ premises are complete. Final installation work for heating, electrical, HVAC and fire protection systems are underway,” Agata Brzeziƒska, country manager at Neinver Poland, said in a statement. The Factory Warszawa Annopol development will comprise 19,700 sqm of space and house 120 stores. ●

In this issue New Immofinanz scheme . . . .15 BRE Bank's plans . . . . . . . . . . . .15 Futureal-Gant team-up . . . . . . .15 Powiśle offices . . . . . . . . . . . . . .16 Warsaw warehouses sale . . . .16 Warsaw Spire tenant . . . . . . . .16 Property-related stocks . . . . . .17 Warsaw laboratory complex . . .17 Galeria Solna mall . . . . . . . . . . .17

Office

Immofinanz launches Nimbus office project in Warsaw The €27 million scheme will deliver 19,000 sqm of GLA in August 2014 Vienna Stock Exchange-listed real estate investor Immofinanz Group has launched construction on its Nimbus office project in Warsaw. The scheme, which is valued at approximately €27 million, will deliver 19,000 sqm of leasable space.

Nimbus will be the first office investment to be developed by Immofinanz Group in the city. The investor admittedly already owns 18 office facilities in the Polish capital but those were acquired, rather than developed by the firm.

“Poland is still an attractive country in terms of developing new real estate projects,”

Eduard Zehetner, president of Immofinanz Group’s management board, said in a statement. He added that highquality and well-located schemes continue to be very popular.

“Nimbus marks our debut in the Warsaw market when it comes to the development of new projects. The realization of the investment shows how our machine is gaining speed and highlights our development in Poland, one of the most significant markets for us,” Mr Zehetner said.

The Nimbus building will be developed on Al. Jerozolimskie in Warsaw’s Ochota district. The facility will feature sustainable solutions, with the investor aiming to secure a LEED certificate of energy efficiency and environmental performance for the structure.

COURTESY OF SOLSKI BURSON-MARSTELLER

B&B refinances Warsaw hotel

DECEMBER 17-23, 2012, LI 17/50

Nimbus is Immofinanz’s first office development in Warsaw The development is scheduled to be turned over for use in August 2014. Porr Polska is the project’s general contractor, while CBRE and DTZ are responsible for the marketing

of the property as its co-exclusive brokers.

Immofinanz Group is focused on the retail, office, logistics and residential sectors in eight markets in

Europe. In Poland, the company is currently involved in developer projects including the Tarasy Zamkowe shopping center in Lublin.

Adam Zdrodowski

Gant and Futureal join forces in Poland Hungarian developer Futureal Group and Warsaw Stock Exchange-listed developer Gant Development have signed an agreement concerning their joint development in Poland of a number of residential investments from the latter company’s portfolio.

According to the deal, Futureal will invest up to z∏.42 million of its own capital in Gant projects. The companies will jointly develop schemes comprising a total of up to 1,200 apartments in three cities, whose value is estimated at a combined z∏.360 million.

The first of these developments will be a housing estate in Kraków in southern Poland, construction on which is already underway and scheduled to finish next year. The project will deliver almost 390 homes.

“The Gant Development and Futureal

groups have established a strong business partnership. With our knowhow in the Polish market and valuable assets we can profit very well in the primary residential market,” Gant Development’s vice president Andrzej Szornak said in a statement.

“We are convinced

that, due to our residential market team’s experience and our position as a leading residential developer in Hungary, we will bring major added value to our joint projects,” stated Futureal Group founder and co-owner Gábor Futó.

The Futureal-Gant agreement is part of the

former company’s plans to invest €100 million, in cooperation with partners, banks and local authorities, in promising projects in Central Europe. The company earlier also teamed up with Caelum Development on a mall scheme in western Poland.

Adam Zdrodowski

BRE Bank moots new office investment in downtown Warsaw BRE Bank is considering demolishing a modern office building it owns at the intersection of ul. Królewska and ul.

Marsza∏kowska in downtown Warsaw and replacing it with a larger project that would

accommodate a bigger amount of office space.

No final decision on the matter has been made yet, with BRE Bank still needing to obtain administrative approvals for the potential investment, said

Piotr Rutkowski from the press office of the BRE Bank group.

“Before any decision is made, the bank needs to obtain a planning decision which will determine the possibilities and restrictions

related to the development of the site,” Mr Rutkowski said. “BRE Bank is considering siting its new Warsaw headquarters building on ul. Królewska,” he added.

If BRE Bank goes

ahead with the plan, the new scheme would be completed “after 2018.”

Mr Rutkowski confirmed that architects from the RKW studio are currently working on the scheme’s design.

The building that

BRE Bank could potentially demolish is part of a complex developed in 1999-2000. It lies adjacent to the Saski Point office building which is currently owned by CA Immo.

Marta Mardosz

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 To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

16

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LOKALE IMMOBILIA – REAL ESTATE

Office

DECEMBER 17-23, 2012

CBRE Global Investors buys major logistics center in Warsaw

Warsaw’s PowiÊle neighborhood attracting office tenants: report

Commercial real estate investment manager CBRE Global Investors has acquired the Warszawskie Centrum Dystrybucyjne (WCD) warehouse and office complex in southern Warsaw from Peakside Polonia Management, an investment funds management firm.

The transaction involved the sale of approximately 34,000 sqm of space. The buyer and the seller were respectively advised by Savills and Linklaters, and Jones Lang LaSalle and Clifford Chance. The value of the transaction has not been revealed.

“The transaction is a clear milestone in the activities of CBRE Global Investors in the Central and Eastern Europe region,” Martin Sabelko, managing director of CBRE Global Investors CEE, said in a statement.

CBRE Global Investors is expanding its investment activities by entering the logistics sector and the acquisition represents its first investment in this sector in the Central and Eastern European market, Mr Sabelko added.

“Warszawskie Centrum Dystrybucyjne is ideally located

in the most stable logistics location in Poland,” stated Richard Everett, investment fund manager at CBRE Global Investors.

He added that the acquired complex ideally fits the investment criteria of the fund.

“The sale of the WCD complex is in line with our investment plan, allowing for the sale of property whose value has been increased through efficient management,” Miros∏aw Januszko, vice president for investment at Polonia Property Funds, said in a statement.

Adam Zdrodowski

Carpathia Office House is one of the new office projects in PowiÊle

Office supply in the location is set to increase significantly in the next few years Warsaw’s PowiÊle neighborhood is increasingly becoming an attractive destination for office tenants who appreciate its central location, quiet nature and competitive rents, according to a recent report by CBRE. “PowiÊle is one of those rare instances in Warsaw where the demand for office space seems to significantly outstrip the supply,” ¸ukasz Ka∏´dkiewicz, director in the office agency of CBRE in Poland, said in a statement.

He added that PowiÊle’s assets primarily include the close proximity of the neighborhood to Warsaw’s downtown

and its improving public transportation. A station of the under-construction second line of the capital’s subway system is scheduled to open in PowiÊle in 2014.

Currently, PowiÊle houses only 1.5 percent of the entire existing office stock in Warsaw, which translates into 10 modern office buildings completed mainly between 1998 and 2001 and offering a total of 60,000 sqm of space.

However, the supply of new office space in the neighborhood is set to increase significantly before the end of 2015, by which time four projects comprising a combined 52,000 sqm of office areas are expected to be delivered.

These will include the first phase of the planned Coperni-

cus Square complex, which will be located on the site of a former power and heat plant and will entail the construction of several new buildings and renovation of existing ones.

Other under-construction and planned office facilities in PowiÊle are the Carpathia Office House building and the headquarters of Mazowiecka Spó∏ka Gazownictwa and Warszawskie Towarzystwo WioÊlarskie.

Few investment transactions were recorded in PowiÊle in the past few years due to the limited supply, but as the number of new projects in the neighborhood rises in the near future, investment activity is expected to pick up too, the CBRE report said.

Adam Zdrodowski

Developer Ghelamco Poland has signed a lease agreement with EU agency Frontex concerning approximately 14,600 sqm of space in its Warsaw Spire office project in the Polish capital’s Wola district.

Frontex, whose full title is the European Agency for the Management of Operational Cooperation at the External Borders of the Member States of the European Union, is the first tenant that Ghelamco has secured for the flagship Warsaw scheme.

The Warsaw Spire investment, which is located between Warsaw’s ul. Grzybowska, ul. ¸ucka, ul.

Towarowa and ul. Wronia and has been designed in line with BREEAM certification requirements, will involve the development of a total of around 100,000 sqm of office space.

The complex will include a 220-meter tower and two smaller 55-meter tall structures (B and C). Frontex, which signed the lease transaction for the period of 10 years,

COURTESY OF PARTNER OF PROMOTION

COURTESY OF QUESTIA

Ghelamco secures first tenant for Warsaw Spire complex

The complex will comprise some 100,000 sqm will occupy space in building B which it is expected to start furnishing in September 2014.

Active in the market for over two decades now, Ghelamco Poland has to date delivered more than 400,000

sqm of office and warehouse space. The company is also present in the residential segment of the Polish real estate market, under its Ghelamco Residential brand.

Adam Zdrodowski

LOKALE IMMOBILIA – REAL ESTATE Property-related stocks

Security

Closing price on Dec 13

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

69.70

-0.43

45.85

88.35

-1.90

25,530,098

1,779.45

CELTIC

3.99

-0.25

3.74

19.38

-77.20

34,231,466

136.58

DOMDEV

32.43

-9.92

23.51

42.80

8.10

24,715,272

801.52

ECHO

5.24

-2.96

3.05

5.48

54.12

420,000,000

2,200.80

111.20

-0.89

87.00

120.00

18.42

4,747,608

527.93

ENERGOPLD

0.30

-3.23

0.17

2.30

-85.37

70,972,001

21.29

ERBUD

15.85

-5.43

11.33

23.20

-3.76

12,677,956

200.95

GANT

4.57

8.81

2.68

9.85

-23.83

20,120,000

91.95

GTC

9.39

3.07

5.20

11.40

-1.16

319,372,990

2,998.91

HBPOLSKA

0.02

0.00

0.01

1.43

-97.33

210,558,445

4.21

JWCONSTR

4.00

-11.11

3.26

8.40

-13.04

54,073,280

216.29

LCCORP

1.22

0.83

0.85

1.48

38.64

447,558,311

546.02

MARVIPOL

8.95

3.47

6.20

11.00

-0.44

36,923,400

330.46

MIRBUD

1.20

0.84

0.98

2.68

-47.83

75,000,000

90.00

MOSTALWAR

11.65

-5.28

11.30

22.21

-35.99

20,000,000

233.00

MOSTALZAB

1.12

4.67

0.81

1.80

-11.11

149,130,538

167.03

ORCOGROUP

10.40

-8.21

6.36

19.55

-32.47

107,840,962

1,121.55

PBG

6.42

-4.18

3.36

83.90

-91.07

14,295,000

91.77

PLAZACNTR

1.41

-0.70

1.40

2.94

-30.20

297,181,703

419.03

POLAQUA

3.55

10.94

3.20

8.18

-37.94

27,500,100

97.63

POLIMEXMS

0.60

1.69

0.48

2.04

-61.29

521,154,076

312.69

POLNORD

10.44

-2.88

10.00

19.85

-23.35

25,633,027

267.61

RANKPROGR

10.17

-6.18

7.10

16.97

14.92

37,183,550

378.16

ROBYG

1.47

2.08

1.08

1.75

31.25

257,935,500

379.17

RONSON

0.83

1.22

0.61

1.15

-13.54

272,360,000

226.06

ELBUDOWA

TRAKCJA

0.65

1.56

0.64

1.44

-48.41

232,105,480

150.87

ULMA

40.51

-2.15

37.20

74.80

-34.66

5,255,632

212.91

UNIBEP

4.88

0.62

3.60

6.28

-11.27

34,021,684

166.03

WARIMPEX

3.70

-1.33

2.64

4.62

4.23

54,000,000

199.80

ZUE

6.28

9.41

5.07

8.50

-13.62

22,000,000

138.16

www.wbj.pl

17

Building permit granted for Warsaw laboratory complex A building permit has been granted for the Laboratorium Centralne CEZAMAT project in Warsaw. The laboratory is expected to become the most modern such scheme in Poland when it is completed in 2015.

The development, whose investor is a consortium of eight Warsaw-based scientific centers, will be built on ul.

Poleczki in the Polish capital’s Ursynów district. The site is over 19,500 sqm and belongs to the Warsaw University of Technology.

The Laboratorium Centralne CEZAMAT investment, whose value is estimated at approximately z∏.385 million, will be comprised of a laboratory building, an administrative building and a park-

Laboratorium Centralne CEZAMAT

COURTESY OF PARTNER OF PROMOTION

DECEMBER 17-23, 2012

ing lot building with spaces for 180 cars.

The former structure will be situated as far as possible from the busy ul. Poleczki to avoid traffic-generated vibra-

tions. The whole complex will deliver more than 32,500 sqm of space, with its general contractor expected to be selected in the first quarter of 2013.

Marta Mardosz

Galeria Solna mall topped out ACE 1, a joint venture formed

by Acteeum Central Europe and Libra Project, which is the investor behind the under-construction Galeria Solna shopping center project in Inowroc∏aw in northern Poland, held a topping out ceremony at the scheme’s construction site earlier this month.

The Galeria Solna investment is being developed on 10 hectares of land and will be the first modern shopping center in Inowroc∏aw. The development will feature more than 30,000 sqm of leasable space and will house approximately 100 stores.

The Galeria Solna mall is

scheduled to open for business in the second quarter of next year. “As early as in spring the inhabitants of Inowroc∏aw will benefit from the broad offer of the first shopping gallery in the region,” said Grzegorz P´kalski, management board president at ACE 1.

Adam Zdrodowski

THE LIST

DECEMBER 17-23, 2012

www.wbj.pl

19

Financial Services

Leasing Companies

Rank

Ranked by revenue from leasing in 2010

Company name Address Tel./Fax E-mail Web page

Revenue from Total revenue leasing (z∏. mln) (z∏. mln)

Net profit (z∏. mln)

Net value of leased assets (z∏. mln)

www.bookoflists.pl

Leasing contracts signed

Leasing: Operational/ Financial

Leased goods

Currency

Additional services

Total number of employees / Ownership: Polish / Foreign Year founded in Poland

Top local executive / Title

1st half of 2011 / 2010 / 2009 / 2008

Europejski Fundusz Leasingowy SA Pl. Orlàt Lwowskich 1, 53-605 Wroc∏aw 1 71 377-7777/71 377-7778 info@efl.com.pl www.efl.com.pl

213.7 434.1 468.0 532.0

260.9 556.4 610.0 650.0

40.3 92.6 121.0 110.0

1,443.5 3,095.6 2,619.8 3,762.0

16,872 37,191 34,521 49,018

✓ ✓

Road transport equipment; machinery and equipment; computer hardware and software; real estate

PLN; EUR; CHF

Insurance; assistance; extended warranty; life insurance; asset policies; vehicle registration; drivers’ legal protection; fuel cards

771 1991

None Credit Agricole - 100%

Raiffeisen-Leasing Polska SA ul. Prosta 51, 00-838 Warsaw 2 22 326-3600/22 325-3601 leasing@raiffeisen.pl www.rl.com.pl

183.6 375.4 408.7 424.9

183.6 375.4 408.7 424.9

29.3 35.7 37.5 50.8

1,270.1 2,377.5 1,528.4 3,096.6

9,797 20,046 14,182 25,608

✓ ✓

Transport equipment; machinery and equipment; IT and office equipment; real estate; yachts and boats

PLN; EUR

Insurance; assistance with formalities

386 1998

Raiffeisen Bank Polska 50% Raiffeisen Leasing International - 50%

LeasePlan Fleet Management Polska Sp. z o.o. ul. Domaniewska 52, 02-672 Warsaw 3 22 335-1666/22 335-1661 info@leaseplan.pl www.leaseplan.pl

209.4 363.7 311.2 258.9

WND 373.9 322.9 268.4

8.4 14.6 10.6 3.7

159.1 288.9 230.4 240.7

2,289 4,715 3,758 3,870

✓ ✓

Vehicles up to 3.5 tons load capacity

PLN

Car purchasing assistance; vehicle registration; insurance; damage claims management; traffic tickets management; environmental fee; RTV subscription payments; tire management; vehicles inspactions and repairs; fuel cards

72 2001

None LeasePlan Corporation 100%

BZ WBK Finanse&Leasing SA ul. Chlebowa 4/8, 61-003 Poznaƒ 4 61 850-3500/22 488-5890 leasing24@bzwbk.pl www.leasing24.pl

132.0 259.0 272.0 255.0

178.0 346.0 340.0 322.0

19.0 11.0 33.0 34.0

744.2 1,321.7 1,319.2 1,752.4

5,480 11,199 10,751 13,981

✓ ✓

Vehicles; machinery and equipment; real estate; wind turbines

PLN; EUR

Insurance; fuel cards

300 1999

WND

ING Lease Polska Sp. z o.o.

Pl. Trzech Krzy˝y 10/14, 00-499 Warsaw 5 22 820-5300 /22 820-5400 inglease.polska@inglease.pl www.inglease.pl

114.0 195.0 216.0 248.0

114.0 195.0 216.0 248.0

23.7 33.8 8.5 20.5

4,302.0 4,222.0 4,256.0 4,108.0

2,871 2,426 1,956 1,562

✓ ✓

Real estate and movables

PLN; EUR

Assistance with formalities; legal services; insurance

120 1996

None ING Lease Holding - 100%

Mariusz Kurzac

Masterlease Polska (Prime Car Management SA, Futura Leasing SA, Masterlease Sp. z o.o.)

6 ul. Polanki 4, 80-308 Gdaƒsk 58 340-4400/58 340-4499 centrala@masterlease.pl www.masterlease.pl

WND 175.4 151.8 131.9

WND 457.0 431.6 322.8

WND -13.2 -31.1 -14.8

WND 425.4 371.2 590.5

WND 6,998 5,976 9,495

✓ ✓

Vehicles up to 3.5 tons load capacity

PLN; EUR

Vehicle servicing; tires; insurance; reports; fuel cards; replacement ehicles; damage claims management; assistance

WND 1995

None Fleet Holdings - 100%

Jerzy Kobyliƒski

BNP Paribas Lease Group Sp. z o.o.

Pl. Pi∏sudskiego 1, 00-078 Warsaw 7 22 566-9688/22 566-9659 contact.leasing.pl@bnpparibas.com www.leasingsolutions.bnpparibas.pl

WND 136.2 159.8 209.9

WND 166.7 192.5 226.7

WND -65.2 7.4 28.2

WND 762.4 595.2 1,371.8

WND 4,578 3,136 6,175

✓ ✓

Real estate; road transport equipment; industrial machinery and equipment; computers and office equipment; other means of transport; other movables

PLN; EUR; CHF; USD

Equipment registration; asset insurance

99 1998

WND BNP Paribas SA

Stephane Halys

Volkswagen Leasing Polska Sp. z o.o.

Al. Jana Paw∏a II 15, 00-828 Warsaw 8 22 538-7000/22 538-7070 info@vwleasing.pl www.vwleasing.pl

55.7 127.8 163.8 140.4

82.7 166.3 199.8 168.5

1.0 14.9 18.9 1.2

252.9 510.7 517.5 858.3

3,092 6,227 6,850 12,206

✓ ✓

WND

WND

WND

WND 1997

WND

Deutsche Leasing Polska SA ul. Wybrze˝e Gdyƒskie 6A, 01-531 Warsaw 9 22 504-9000/22 504-9100 info@dlp.pl www.dlp.pl

WND 105.6 127.9 113.7

WND WND WND WND

WND WND WND WND

204.4 509.6 746.7 606.2

247 554 708 701

✓ ✓

Industrial machinery and equipment; road and rail transport equipment

PLN; EUR

NL-Leasing Polska Sp. z o.o. ul. Lubowidzka 33, 80-174 Gdaƒsk 10 58 300-0059/58 322-1795 office@nl-leasing.pl www.nl-leasing.pl

15.9 32.3 WND 29.5

20.1 39.7 WND 32.2

2.0 3.0 WND -2.9

22.2 48.9 354.0 68.7

185 431 WND WND

✓ -

Transport equipment

PLN; EUR

ATHLON CAR LEASE POLSKA Sp. z o.o.

Al. Jana Paw∏a II 29, 00-867 Warsaw 11 22 653-7885/22 653-7874 info@athloncarlease.pl www.athloncarlease.pl

24.6 24.8 13.0 3.9

24.5 24.5 13.0 3.9

0.5 -1.9 -5.2 -2.9

18.2 38.8 38.6 22.9

WND WND WND WND

✓ WND

Vehicles up to 3.5 tons load capacity

PLN

Notes: WND = Would Not Disclose. Research for The List was conducted in July 2011. Number of employees and ownership structure are as of June 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Andrzej Krzemiƒski President

Arkadiusz Etryk President

S∏awomir Wontrucki President, Managing Director

Wojciech Nowacki President

President

President

General Director

Joanna WujcikLasocka; Artur Zalewski Board Members

60 1997

None Deutsche Sparkassen Leasing - 100%

Krzysztof Brzeziƒski; Anna Krakowska

Insurance

11 2004

WND - 48% WND - 52%

Arkadiusz Trojakowski

Insurance; damage claims management; technical maintenance; tires; Athlon Assistance; replacement cars; fuel cards; reports

22 2007

WND Athlon Beheer International

Eric van Vliet

Insurance

Board Members

President

President

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 typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2012, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

20

MARKETS

www.wbj.pl

DECEMBER 17-23, 2012

Stocks report

world stock indices DJIA

NASDAQ

13,074.04 (Dec 13 close)

S&P500

2,992.16 (Dec 13 close)

0.74% (for the week)

FTSE100

1,419.45 (Dec 13 close)

0.10% (for the week)

DAX

5,929.60 (Dec 13 close)

0.39% (for the week)

0.48% (for the week)

WIG20 powers ahead

NIKKEI225 7,581.98 (Dec 13 close)

9,742.73 (Dec 13 close)

0.63% (for the week)

2.07% (for the week)

CHANGE: 6.24%

CHANGE: 12.97%

CHANGE: 11.15%

CHANGE: 4.03%

CHANGE: 24.80%

CHANGE: 13.82%

(year to Dec 13)

(year to Dec 13)

(year to Dec 13)

(year to Dec 13)

(year to Dec 13)

(year to Dec 13)

52-week high: 13,661.90

52-week high: 3,196.93

52-week high: 1,474.51

52-week high: 5,989.10

52-week high: 7,626.40

52-week high: 10,255.20

52-week low: 11,735.20

52-week low: 2,518.01

52-week low: 1,202.37

52-week low: 5,229.80

52-week low: 5,637.53

52-week low: 8,238.96

Andrew Nawrocki WBJ market analyst Last week was another period of strong gains for stocks on the WIG20, with the blue-chip index showing further resilience as it broke 2,500 points in mid-week.

Monday started off strong, despite weak economic data being released in both Japan and China hours before trading opened in Europe.

The WIG20 closed 1.05 percent higher, with only Athens managing greater gains. The bulls gave no rest on Tuesday, gaining more confidence after German investor sentiment improved sharply in December. The WIG20 managed to break the psychological barrier of 2,500, not reached since August 2011. The WIG20 closed 1.46 percent higher, with shares of TVN leading with a 5.5 percent gain.

Wednesday saw addition-

Major indices WIG

46,653.84 (December 13 close)

WIG20

2,518.80 (December 13 close)

13.12

12.12

11.12

10.12

07.12

06.12

05.12

04.12

03.12

30.11

29.11

28.11

27.11

13.12

12.12

11.12

10.12

07.12

06.12

05.12

04.12

03.12

2,300 30.11

43,000

29.11

2,360

28.11

43,800

27.11

2,420

26.11

44,600

23.11

2,480

22.11

45,400

21.11

2,540

20.11

46,200

19.11

2,600

16.11

47,000

26.11

52-week low: 2,035.80

23.11

Change year to December 13: 14.80%

22.11

52-week low: 36,653.28

21.11

52-week high: 2,525.40

Change year to December 13: 21.75%

20.11

Change for the week: 1.34%

19.11

52-week high: 46,717.72

16.11

Change for the week: 1.38%

Top 5 MISPOL STALEXP SADOVAYA BNPPL NFIEMF

Closing 1.04 1.40 2.00 52.00 14.00

% change (week) 52-week high 48.57 3.80 20.69 1.45 19.05 10.90 18.18 89.00 16.67 15.00

52-week low 0.70 0.99 1.35 44.00 7.10

Top 5 TVN KGHM PKNORLEN KERNEL GTC

Closing 9.98 189.00 48.79 69.00 9.39

% change (week) 10.89 4.71 4.68 3.60 3.07

52-week high 12.40 190.00 49.15 76.00 11.47

52-week low 5.90 102.40 31.44 51.00 5.13

Bottom 5 BEST MEXPOLSKA ADVADIS MEDIATEL ZASTAL

Closing 20.00 2.85 0.03 0.92 2.00

% change (week) -33.88 -29.63 -25.00 -20.69 -16.32

52-week low 11.25 2.77 0.03 0.88 0.69

Bottom 5 SYNTHOS PEKAO BOGDANKA PGE TAURONPE

Closing 5.55 161.00 133.00 18.16 4.49

% change (week) -4.64 -1.83 -1.77 -1.30 -1.10

52-week high 6.78 165.90 137.00 21.78 5.61

52-week low 4.02 128.10 103.80 16.72 4.08

52-week high 36.50 10.89 0.11 2.56 2.63

Currency report

Z∏oty gains on Fed’s QE

Other indices sWIG80

10,301.10 (December 13 close)

NewConnect

32.93 (December 13 close)

WIG-Banki

6,492.59 (December 13 close)

SOURCE: WSE

13.12

12.12

11.12

10.12

07.12

06.12

05.12

04.12

03.12

30.11

29.11

28.11

16.11

13.12

12.12

11.12

10.12

07.12

06.12

05.12

04.12

03.12

30.11

6100

29.11

32.0 28.11

6,200

27.11

32.4

26.11

6,300

23.11

32.8

22.11

6,400

21.11

33.2

20.11

6,500

19.11

33.6

16.11

6,600

27.11

52-week low: 5,163.30

26.11

Change year to December 13: 17.13%

23.11

52-week low: 32.93

22.11

52-week high: 6,550.37

Change year to December 13: -20.63%

21.11

Change for the week: 0.51%

20.11

52-week high: 43.83

19.11

Change for the week: -0.87%

34.0

Adam Narczewski X-Trade Brokers DM SA

13.12

12.12

11.12

10.12

07.12

06.12

05.12

04.12

52-week low: 8,218.71

03.12

28.11

27.11

52-week high: 10,536.29

26.11

16.11

13.12

12.12

11.12

10.12

07.12

06.12

05.12

04.12

03.12

9,700 30.11

2,300 29.11

9,840

28.11

2,380

27.11

9,980

26.11

2,460

23.11

10,120

22.11

2,540

21.11

10,260

20.11

2,620

19.11

10,400

16.11

2,700

23.11

Change year to December 13: 19.72%

22.11

52-week low: 2,076.52

21.11

Change year to December 13: 17.91%

20.11

Change for the week: 1.36%

19.11

52-week high: 2,582.56

30.11

2,582.56 (December 13 close)

29.11

mWIG40 Change for the week: 1.77%

al gains, with the main impetus coming from overseas as the Federal Reserve ramped up its monetary stimulus and said it would keep benchmark interest rates near zero. The WIG20 again led most of Europe, gaining over half a percent, while the DAX and FTSE saw gains of about a third of a percent.

Once again shares of TVN powered ahead, up nearly 6 percent.

After three days of gains, shares saw some pull-back on Thursday. Of 350 listings on the Polish exchange, 170 closed higher while 180 closed lower. The WIG20, though, closed a quarter of a percent lower.

On Friday, the WIG20 rose 0.71 percent while the overall WIG added 0.56 percent, due to positive US economic data. ●

The main event of last week did not disappoint investors.

The US Federal Reserve extended the quantitative easing program by another $45 billion monthly in addition to the current $40 billion mortgage securities buyback program.

Markets got what they needed: an impulse to make the move. As the reception of the Fed’s decision was received positively, markets rallied. The EUR/USD, which has been rebounding from $1.29, continued its upward move all the way to $1.31.

I believe it was emotions which drove the EUR/USD and the upcoming weeks should bring a corrective movement on the main currency pair. The z∏oty market also experienced higher volatility. All signs pointed against appreciation – mem-

bers of the rate-setting Monetary Policy Council (RPP) talked about the necessity of further interestrate cuts while CPI inflation fell to 2.8 percent from 3.4 percent in November. Inflation, the main factor the RPP is looking at is falling and I do not see a need to change my interest rate forecast of 3.25 percent in 2013.

The EUR/PLN, which hovered around the z∏.4.12 area for a couple of days, tumbled after the Fed’s decision and is being quoted at z∏.4.08.

The USD/PLN, the more volatile of the z∏oty currency pairs, experienced an even larger move – after reaching a weekly high of z∏.3.20 it tumbled all the way to z∏.3.08. I believe the z∏oty cannot stay strong for long at these levels and a reversal is therefore in the cards. ●

currency rates 3.7306 14.12

SOURCE: NBP

3.7591 13.12

3.7975 12.12

3.8368

3.8884 10.12

11.12

3.8786 14.12

13.12

12.12

11.12

10.12

07.12

0.1016

0.1021

0.1025

0.1031

0.1034

PLN-100JPY

4.0

3.5

07.12

3.3834

3.3847 14.12

0.10

0.1034

PLN-RUB

0.12

13.12

3.3870

3.3775 12.12

10.12

11.12

3.4193

3.4166 14.12

13.12

12.12

11.12

10.12

07.12

5.0431

5.0515

5.0765

5.0906

5.1236

PLN-CHF

3.5

3.0

07.12

3.1333

3.1271 14.12

5.0

5.1274

PLN-GBP

5.3

13.12

3.1459 12.12

3.1645 11.12

10.12

3.1930 07.12

4.0927

4.0912 14.12

3.0

3.1978

PLN-USD

3.5

13.12

4.0937 12.12

4.1332

4.1025 11.12

10.12

07.12

4.0

4.1250

PLN-EUR

4.3

SPORTS

DECEMBER 17-23, 2012

www.wbj.pl

Soccer

Rally driving

Warsaw clubs riding high in Ekstraklasa

Ma∏ysz ready for second Dakar Rally

COURTESY OF FACEBOOK/POLONIA WARSZAWA

The former ski jumper is hoping to improve on last year’s result Polish sporting icon Adam Ma∏ysz is preparing for his second attempt at the famous Dakar Rally, which begins in Lima on January 5.

The former ski jumper, who captured four ski jumping world championships during an illustrious career, finished in 37th place in last year’s event.

The Pole, who retired from skiing in 2011, said he hopes to finish in the top 20, although he acknowledges, that this will be a difficult task given how little experience he has in his new sport.

“If by the time we get to the finish in Santiago we are in the top 20 overall, then that will be great. But we realize that it will be a difficult task,” he said at a press conference last week.

“I know that I’m still a novice. I have to continue to learn diligently, Rafa∏ is a

good guy, without whom I would have done very little,” he said of his co-driver Rafa∏ Marton.

But prior to the start of the event the four-time Olympic medalist plans to spend the first full Christmas with his family in 17 years. Last year he was in preperation for the Dakar Rally, while prior to that he was always competing in ski jumping events.

“I’m not sure I’ll know what to do,” he said.

David Ingham

Legia Warszawa and crosscity rivals Polonia Warszawa have ended 2012 at the top of Poland’s Ektraklasa division.

Legia, which has led the table for much of this season, went into the winter break on the back of a 1-0 away defeat to last season’s champions Âlàsk Wroc∏aw.

However, despite losing the match, the team was still able to maintain its Ektraklasa dominance going into

Christmas, with 33 points from 15 matches. Along with leading the table, Legia also has the top scorer, with Serbian striker Danijel Ljuboja at the top of the pack with 10 goals.

Yet while Legia was expected to challenge for the title this year, their arch rivals have been much more of a surprise package for Polish soccer fans. Polonia, also known as the Black Shirts, by far the smaller of the capital’s two professional clubs, has put itself in position for a shot at capturing the title, with seven wins and three

draws at the half-way point, leaving the team just five points behind Legia.

In the final match before the break Polonia brushed aside eighth-placed Pogoƒ Szczecin to leap-frog Âlàsk Wroc∏aw and Górnik Zabrze and move into third, one point behind Lech Poznaƒ in second. If Polonia manages to maintain its form in the second half of the season it could result in its first Polish title since 2001, when the goals of Polish-Nigerian striker Emmanuel Olisadebe fired the team to the title.

David Ingham

COURTESY OF FACEBOOK/MALYSZPL

Polonia players and fans celebrate following their victory

Legia and Polonia go into the winter break in first and third place, respectively

21

Adam Ma∏ysz (left) and co-driver Rafa∏ Marton

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LIFESTYLE

www.wbj.pl

Concert

Selah Sue

Classical concerto

COURTESY OF FACEBOOK/SELAHSUE

Concert

Back by popular demand Selah Sue December 19 Klub Stodo∏a, ul. Batorego 10 Warsaw Following the runaway success of her sellout Warsaw concert last March, Belgian singer-songwriter Selah Sue is back again for more of the same this holiday season.

Named as one of Rolling Stone magazine’s faces of 2012, her eponymous debut

album has sold more than half a million copies so far.

The record presents a mixture of styles, with her Amy Winehouse-influenced vocals recorded over acoustic ballets, as well as more electronic- and funk-infused tracks.

Along with a new legion of fans, the singer has also attracted the great and the good of the music world,

supporting legendary singersongwriter Prince during a 2010 concert in Belgium. She also recently appeared as part of the entertainment at a recent royal wedding in Luxembourg.

Tickets for her latest Warsaw concert are priced from z∏.100.

David Ingham

For more information, log on to stodola.pl

DECEMBER 17-23, 2012

COURTESY OF MTMTEATR.EU

22

New Year’s Concert December 1, 5 pm Warsaw Philharmonic, ul. Jasna 5 Warsaw This annual event has become a New Year’s tradition since first being established by the Jan Kiepura Mazovian Music Theater in 2005. And what better way than to welcome in 2013 with an evening of classical music in the best festive

Last year’s concert spirit.

The 2013 edition will feature soloists Victoria Yastrebova (soprano) and Siergey Semishur (tenor) from the Mariinsky Theatre of Saint Petersburg, in addition to musicians from the Jan Kiepura Mazovian Music Theatre, including soloist Ma∏gorzata Kustosik and mezzosoprano Joanna Jakubas.

The renowned Mazowsze

choir will also be present, while the main artists will also be backed up by the theater’s orchestra, led by maestro Jacek Bon. They will perform waltzes, polkas, czardases, and numerous other musical styles.

Tickets for the event are priced from z∏.150.

David Ingham

For more information, log on to mtmteatr.eu

LAST WORD

DECEMBER 17-23, 2012

www.wbj.pl

23

Tech Eye

The Arkeg

your price range, or perhaps out of your moral comfort zone. Here’s a slightly cheaper, considerably less licentious alternative: the Arkeg, an arcade game / kegerator from California-based Allstarcade (Drinkngame.com).

Beer and video games. Occupying the same liquid/scratch-resistant black vinyl cabinet. Genius.

Now for the details: the Arkeg holds a five-gallon keg and, yes, a European keg coupler is available (though it costs an extra $80). The cabinet holds a 24-inch LCD screen and a gaming PC that comes loaded with almost 70 games, including the first three Mortal Kombat titles, Spy Hunter, Street Fighter II CE, Gauntlet and Joust. Other games are just a download away.

The bad news is that the Arkeg costs a rather stout $4,000, and the extras will drain your wallet. Adding a 10-inch drip tray will run you $90, for example, and a single bar stool costs a difficult-to-fathom $200.

If the Arkeg’s price tag puts you off, an interesting alternative might be the Bear Grylls Basic Survival Kit from Gerber (Gerbergear.com).

That’s Gerber the knife maker, not the baby-food company.

The Bear Grylls Basic Survival Kit

set of survival tools – a small Gerber knife; emergency whistle; fire starter; waterproof matches; snare wire; emergency cord; cotton ball/fire tinder; a lightweight, nylon bag with waterproof zipper; “land to air rescue instructions”; and a pocket survival guide. Cost: $21 (on Amazon).

If a survival kit doesn’t feel like the right present, here’s a truly ballsy gift: the Sphero robotic ball gaming system from Orbotix (Gosphero.com).

The Sphero is a zoomy, colorshifting ball that you remote control via smartphone (iOS or Android device). It’s a straightforward toy,

If you’re not familiar with him, Bear Grylls is a survivalist bloke who eats dead camel fat, drinks urine and fights bees with his face, all for the amusement of the home audience. He’s essentially an outdoorsy Jeremy Clarkson who doesn’t talk as much $%^!, but isn’t afraid to eat it (provided it contains some half-digested fruit).

So the Basic Survival Kit would be a decent present for a man’s man, or a man who fancies himself a man’s man. It comprises a basic

although apps offer some gameplay variety, letting you simulate golf, execute complicated commands or just scare the bejesus out of a cat.

The battery lasts for about an hour, and takes 2-3 hours to charge. Par for the course, that.

You can get a Sphero together with more than 20 apps on Amazon for $139. Cat not included.

That’s it for Techeye’s 2012 Christmas gadget extravaganza. If you haven’t bought presents yet, good luck finding some. And if you really get desperate, give some thought to the French maid idea – there’s no way to go wrong with that. ●

Sphero

COURTESY OF ORBOTIX

COURTESY OF ALLSTARCADE

There’s a guy you need to get a present for. A significant other, colleague, arch-frenemy – it doesn’t matter who.

What matters is that you need that present and it’s almost Christmas.

The clock is ticking. What are you going to do?

Don’t worry, Techeye is here to help. First ask yourself, what does every guy want?

The answer is simple: identical twins dressed as French maids, with a vocabulary limited to “Yes, Master,” “It’s peanut butter night, Master” and “That’s illegal in most civilized nations, Master...giggle.”

But let’s assume that’s either out of

COURTESY OF GERBER

Last minute gadgets (and other gifts) for guys

Ever sampled a half-digested morsel of fruit? Let us know: techeye.wbj@gmail.com

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

Fibak Gallery ul. Krakowskie PrzedmieÊcie 5 www.galeriafibak.pl

Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.

Galeria 022, DAP, Lufcik pl ul. Mazowiecka 11a www.owzpap.pl Le Guern Gallery ul. Widok 8, Galeria 65 www.leguern.pl ul. Bema 65 www.galeria65.com Museum of Galeria Appendix 2 Independence ul. Bia∏ostocka 9 Aleja SolidarnoÊci 62 www.appendix2.com www.muzeumniepodleglo sci.art.pl Galeria Asymetria ul. Nowogrodzka 18a National Museum in www.asymetria.eu Warsaw Al. Jerozolimskie 3 Galeria Foksal ul. Foksal 1-4 www.mnw.art.pl www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Pracownia Galeria Wilanów Palace ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.milanow-palac.pl ul. Karowa 31 www.postermuseum.pl www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamekkrolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

To advertise in WBJ’s classifieds section, contact Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl