Some Polish ministries oppose options bill-agency

WARSAW Feb 16 (Reuters) - Several Polish ministries have expressed doubts about a proposed law that would allow local companies to walk away from mounting losses on currency options, the economy minister was quoted by state news agency PAP as saying on Monday.

Deputy Prime Minister Waldemar Pawlak, who also heads the economy ministry, has proposed three versions of a law that would either allow companies to drop the loss-making contracts with banks or cancel them altogether.

Polish finance regulators say the exposure to currency derivatives does not exceed 15 billion zlotys ($4.0 billion), but it was not clear what portion was normal hedging deals that do not risk debilitating losses.

The government is expected to debate the proposals at its Tuesday sitting, but Pawlak told PAP that the finance, justice and regional development ministries have raised concerns.

Pawlak is meeting with representatives of other ministries on Monday to push his proposal.

Finance Minister Jacek Rostowski criticised Pawlak's proposal, which he said would be retroactive and likely unconstitutional, exposing Poland to lawsuits from banks.

"I would like to discuss with representatives of other ministries what steps they see as achievable, because this is not a problem on just one ministry," Pawlak said.

As the zloty plunged over recent months a number of local companies began reporting large losses on currency options contracts, many of which were signed near the zloty's August peak. Several companies went bankrupt.

Pawlak and other critics blame bankers for pushing products many of their corporate clients did not fully understood.

Bank Millennium BIGW.WA Chief Executive Boguslaw Kott rejected those charges last week, saying some exporters "were playing dumb" after making sizable profits on those trades in the past years.

Concerns over government moves to cancel the options have contributed to a further weakening in the zloty over recent weeks, sending the currency to its lowest level in more than four-and-half years, dealers said. ($1=3.722 Zloty) (Reporting by Piotr Skolimowski and Chris Borowski; editing by Simon Jessop)