The Polish scheme foresees two categories of support measures: State Treasury guarantees for the issuance of new senior debt by banks and liquidity support measures in the form of Treasury bonds, either as a loan or to be sold with deferred payment.
The measures would guarantee short and medium-term debt to encourage inter-bank lending and offer liquidity to financial institutions under strict conditions. The Commission found the measures to be in line with its Guidance Communication on state aid to overcome the current financial crisis.
The Polish scheme foresees two categories of support measures: State Treasury guarantees for the issuance of new senior debt by banks and liquidity support measures in the form of Treasury bonds, either as a loan or to be sold with deferred payment.
The Commission concluded that the measures constituted an appropriate means to restore confidence in the creditworthiness of Polish financial institutions and to stimulate inter-bank lending. In particular, the scheme is limited in time and scope and provides non-discriminatory access for financial institutions established in Poland. The guarantees and loans will be provided for debt instruments with maturities from three months up to five years. However, bank loans guaranteed by the State Treasury with a maturity exceeding three years will be restricted to a maximum of the third of the value of all the beneficiary's bank loans supported by the scheme.
Debt guarantees on newly issued debt will be available only to credit institutions. Should the State guarantee be called upon by a beneficiary, or should the beneficiary default on its liabilities related to Treasury bonds, a restructuring plan will be submitted within six months. The remuneration for the debt guarantees will be established in line with the European Central Bank (ECB) recommendations and the remuneration for the lending of Treasury bonds or for deferred payments for Treasury bonds will be even higher then for the guarantees.
Eligible institutions may apply for the support under the scheme until 31 December 2009, but support may be granted later within six months from the day the decision is adopted.
© European Commission
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