The construction sector will continue to fall in Poland over the next two quarters, analysts claim, driven down by the road buildings, where the slump is expected to deepen. A large number of the road investments could be put on hold, says Michał Stalmach from the BOŚ brokerage office, who warns that a complicated situation has arisen where subcontractors working on large infrastructure projects are concerned that they won’t be paid for work they do, as general contractors that employ them are hitting difficult times.
That nervousness is being passed on to their banks. “The lenders could have some serious difficulties to assess the real value of the companies, as they will have problems to estimate the final losses on these contracts. When this happens, the banking sector will tighten its policy limiting the financing for both, new and ongoing investments,” claims Stalmach.
