FROM THE OFFICE OF PUBLIC AFFAIRS

Treasury Secretary Robert E. Rubin today told Polish Deputy Prime Minister Leszek Balcerowicz the United States is prepared to recommend to the operating committee of the Polish Bank Privatization Fund (PBPF) that the PBPF release to Poland the remaining $410 million in the fund, including the $210 million U.S. share.

Secretary Rubin noted in his meeting today with Balcerowicz that Poland had been a leader among transition economies and has achieved sustainable growth, positioning Poland now to finish the job of stabilization through strengthening fiscal policies and bringing inflation down into the low single digits. Secretary Rubin observed that this success owes much to Mr. Balcerowicz, who implemented Poland's "Big Bang" reform strategy in the early 1990s, as well as to sustained stabilization policies since then.

The PBPF was created in 1992 with U.S. urging to help Poland jettison its state-owned commercial banking system. Major progress has been made: six key banks, including the former large state trading bank, have been privatized and further significant privatizations of specialized state banks are expected this year. Foreign banks have also established a major stake in the Polish financial system. The PBPF is testimony to the tangible benefits of U.S. and multilateral support for Poland's transformation.

The 10-member operating committee of the PBPF will meet on Friday, April 17, to act on this recommendation. If the Committee accepts the recommendation, the United States will act promptly to transfer the U.S. share of over $210 million to Poland, Rubin said.