The basic source of capital for companies in Poland are profits generated by them, and bank credits. Even in the 1990s, the latter were difficult to obtain and rather expensive. Due to low inflation and falling interest rates of the central bank, however, they are becoming ever more profitable. Also, the number of other sources of capital for companies is growing.

First of all, Polish stock exchange is growing in a flash. In the last few years, it is one of the fastest growing stock exchanges in Europe. Taking into account the number of new companies' listings, it is second only to its biggest counterparts, like London (LSE) or Euronext (see Chart 34.1). The number of foreign companies listing on the WSE is increasing, e.g. Bank Austria Creditanstalt AG, Hungarian MOL or Borsodchem. More information about the Warsaw Stock Exchange is available on the WSE website: http://www.wse.com.pl/

Apart from the stock exchange, another popular source of capital in Poland are private equity and venture capital funds. In 2004, their investment in Poland amounted to 130 million euro. This is much less than in Germany, France or the UK, but it is a considerable amount, especially provided that an average PE/VC investment in Poland is smaller. These types of investment are nevertheless very important for the economy, allowing smaller, private companies for an accelerated growth. It is worth noting that a large portion of the money invested in Poland by PE/VC is channeled towards new techonologies (Chart 34.2) More information, and contact information to the most important funds operating in Poland, is available at the Polish Private Equity Association website: http://www.psik.org.pl/new/index.php  

Chart 34.1

Source: PriceWaterhouseCoopers, IPO Watch Reports for 1st and 2nd quarter 2005 and for 2004.

Chart 34.2

Source: based on Money for Growth Technology Investment Report, PriceWaterhouseCoopers