POLAND: DEBT PROBLEMS UNRESOLVED

Created: 1/6/1982

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POLAND: Debt Problems Unresolved

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The vice president of the Polish Commercial Bank yesterday denied reports that Moscow recently helped the Poles meet interest payments due Western banks andthat he did not expect Soviet funds in thefuture. The bank officer lnfoi that at the end1 Poland sti: short.

debt rescheduling agreement between Poland and Western banks called for all interest due throughecember to be paid. On that date Poland Indicated it was still enable to0 million of the amount due. Warsaw apparently paid0 million in the final week of December, and additional payment r. have boon reported by banks in the past few days.

The patience of the Western banks determinesWarsaw has to meet the remainder of Itehas avoided default despite failing to meetdeadlines and conditions set by the banks,riek increasesingle creditor will

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Warsaw's most immediate financial problem is to wrap up the private debt rescheduling agreementut even if that is concluded Poland still will be technically in default- Negotiations for uebt relief from Western governments and banks2 have not yot begun.

Government-Union Discussions

Polish radio yesterday reported that the government was holding talks with Solidarity "activists.- it is unlikely that any of the union's prominent leaders before martial law were involved. The regime, however, has had some success in finding lower level union officials who are willing to recant.

The government probably, hopes to confuse thewith such reports and may bo thinking ofew but passive Solidarity. Warsaw also has formally abolished the Independent Student Organization,equivalent on campus. PJH

6 January i')B2

Military Activity

Soviet forces in and around Poland are conducting seasonal training activity.

Soviet Commentary

According to Moscow Radio, Polish Foreign Minister Czyrek will visit Moscow In the first half of this month. Since Czyrek probably cannot provide the Sovietsinsights concerning the present situation, the purpose for the trip may be only toong tradition of formal bilateral exchanges held at this time Of year.

In an article commemoratingh anniversary of the birth of the Polish Communist Party, Provdaagain reminded Premier Jaruzelski that the party's supremacy must at some time be restored. Praodaan earlier statement by Jaruzelski regarding the special role of the party under martial law and pointedly employed his party

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