Poland, Eureko move to settle long-running dispute

WARSAW, Jan 17 (Reuters) - Poland and Dutch insurer Eureko agreed on Thursday to allow the European Bank for Reconstruction and Development (EBRD) to play a part in efforts to resolve their long-running dispute over control of insurer PZU.

Poland's treasury ministry and Eureko resumed talks after more than six months, following the appointment of a new centre-right government that replaced more protectionist conservatives.

The eight-year old dispute since Eureko took a stake in the state-controlled PZU has been a black mark on Poland's privatisation record and could cost the state budget as much as 2 billion euros ($2.9 billion) if no compromise is reached.

At a meeting between new Treasury Minister Aleksander Grad and Eureko representatives, the two sides agreed to create a joint group to seek a compromise.

Eureko agreed to allow the EBRD to prepare its own resolution proposal, which could involve the organisation taking a stake in PZU.

Poland, which has 55 percent of PZU, had reneged on an agreement to float the region's largest insurer and allow Eureko to gain a majority stake. The Dutch group has slightly less than 33 percent.

Eureko has won several international arbitration rulings against Poland and is awaiting a decision on damages, which sources close to the company put at as much as 2 billion euros.

Source: (Reporting by Chris Borowski; Editing by David Holmes) www.reuters.com