Polish government seeks bank loans to stabilize JSW

Wojciech Balczun, Poland's minister of state Assets, confirmed that the Polish government is in talks with banks about possible loans to rescue Polish coking coal producer Jastrzebska Spolka Weglowa SA (JSW), according to a Reuters report. The government and banks will determine the size, conditions and conditionality of any loan package. The effectiveness of the rescue is likely to affect the dynamics of coal and steel supplies in Poland and the region.JSW is experiencing severe financial stress due to falling coal prices, rising energy prices, and growing competition from cheap steel imports. The minister noted that a restructuring process is needed, including the disposal of non-core assets to raise funds. The government's restructuring program plans will include jointly funded voluntary layoffs and salary-related adjustments to support financial recovery, intending to transform and preserve JSW, as previously reported. SteelOrbis.