Polish PM-no plans for state to pay for FX options

WARSAW Feb 17 (Reuters) - Poland's Prime Minister Donald Tusk said on Tuesday he agreed with the leader of the junior coalition party not to take any steps related to toxic currency options that would transfer resulting costs to the state.

Deputy Prime Minister Pawlak proposed a law that would allow companies to walk away from loss-making currency contracts with banks or cancel them altogether, which many feared could result in expensive lawsuits against the government.

"Together with Deputy Prime Minister Pawlak we agreed not to take any steps that would transfer the effects of the options to the state, or, in effect, the taxpayer," Tusk told a news conference broadcast on public television.

Pawlak's proposals have met resistance from some key ministries, including finance and justice, who feared the law would be retroactive and could result in hefty damages to be paid by the state. (Reporting by Chris Borowski, editing by Will Waterman)