The Financial Perils of Poland

One loan agreement, but many larger problems remain

After months of bitter and frustrating delays, Western bankers and representatives of the Polish government finally signed an agreement last week that permitted Poland to stretch out the payment of $2.4 billion in loans, which were actually due last year. The solemn signing at the glass-and-aluminum-sheathed headquarters of the Dresdner Bank in Frankfurt removed one obstacle to the start of talks on extending the deadline on $4.6 billion that Poland is scheduled to repay banks and governments this year.

Bankers, who once feared that their Polish loans might become total losses, seemed satisfied with last...

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