TVP intended to use its HQ to secure a zł.100 mln loan Mateusz Gloąb/WBJ

The Polish state-owned TV broadcaster TVP has to come up with a new way of borrowing zł.100 million after the Polish Treasury turned down its loan request.

The Treasury explained that the broadcaster failed to specify what it would use the funds for and how it intended to pay the loan back.

The broadcaster wanted the funds for “optimization of fund management during the economic crisis, technological changes and business restructuring costs.” The company, which has been talking about the need for the loan since March, had planned to re-mortgage its Warsaw headquarters to obtain the money.

“I am very concerned with what I have recently received from the TVP management as a request to grant the zł.100 million loan,” said Treasury Minister Aleksander Grad at a press conference in mid-May. “It does not specify what the money is going to be spent on nor how the company plans to pay the loan back. That is why I am not capable of making such a serious decision for the company in a situation when the security for the loan is mainly the TVP building.”

TVP recently announced the start of its restructuring process. It is being said unofficially that around 1,000 employees could lose their jobs.

Roberto Galea, Martyna Olik