TVP to be bailed out?
Troubled public broadcaster TVP has taken out a zł.100 million loan to cover basic expenses.
The finances of public television group TVP have deteriorated to the point where it has been forced to take out a zł.100 million loan from Bank Pekao in order to cover its employees’ salaries. The news is just the latest blow to the firm, which last year became the focus of a political tug-of-war, and has been fighting to stave off insolvency since December. It’s not entirely clear, however, if the full amount of the loan will go to paying salaries or if part will be spent on liabilities.
At the beginning of this year, TVP’s utility providers demanded that the company pay its debts and were reportedly considering filing a bankruptcy petition against it. However, according to a 1992 broadcasting law, TVP is technically unable to go bankrupt.
Concerns have therefore arisen that the state may soon be forced to bail out TVP if the company can’t manage to turn its finances around. A media bill passed by Parliament last year would have established a new financing policy for TVP, but was vetoed by President Kaczyński.
According to a December report by the Supreme Chamber of Control (NIK), which audits state-owned assets, TVP’s perennial financial troubles have worsened significantly in recent months.
Paweł Biedziak, a spokesperson for NIK, enumerated four reasons why TVP finds itself in this situation. He pointed to “A sharp drop in income rates from the license fee, a downturn in the advertising market, a costly and disorderly human resources policy and a complete lack of far-sighted management and development strategy.”
A few years ago the government announced a plan to abolish licensing fees for TVs, and since then these revenues have fallen significantly. According to Dziennik Gazeta Prawna, some zł.80-100 million will come in from this source this year; in past years TVP earned as much as zł.500 million from such fees.
According to Mr Biedziak, TVP has already responded to the NIK report and has promised to clear up the company’s employment policy, which has recently been investigated due to irregularities.
Emilia Korczyńska