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Poland’s PZU-Pekao merger could unleash PLN 200 bn ($53 bn) in new loans – finance minister

03.06.2025 12:00
Poland’s biggest insurer PZU and lender Bank Pekao signed a memorandum of understanding on Monday that could free up PLN 20 billion ($5.3 billion) of top-tier capital and pave the way for up to PLN 200 billion ($53 billion) in fresh corporate lending.
Polish Finance Minister Andrzej Domański.
Polish Finance Minister Andrzej Domański.PAP/Andrzej Jackowski

Under the non-binding deal, which the partners aim to close by 30 June 2026, PZU would split into a holding and an operating unit, with the holding company folded into Pekao. The plan is designed to simplify the group’s structure, bolster bancassurance and deliver revenue synergies.

Finance Minister Andrzej Domański told the European Financial Congress in Sopot that releasing PLN 20 billion of Tier 1 capital could “radically increase the supply of credit” and potentially double Poland’s stock of investment loans to companies.

“That 200-billion credit impulse is a conservative estimate,” Domański said, adding that the finance ministry would “actively support” the transaction.

State Assets Minister Jakub Jaworowski called the tie-up “epoch-making”, saying it would create a powerful bancassurance group led by Pekao and end the “unhealthy situation” of an insurer controlling two competing banks.

He stressed that the deal hinges on maintaining the Treasury’s corporate-governance rights and on EU “Danish-compromise” rules that lower capital requirements after restructuring.

The companies said the merger remains subject to a range of corporate and regulatory approvals. If successful, analysts say it would create one of the largest financial groups in Central Europe.

($1 = PLN 3.75)

(jh)

Source: PAP