Poland: State aid for companies in financial difficulties
Description
On May 26, 2009 the Polish government approved a programme of initiatives to revitalise the Polish economy, which are supposed to last until December 31, 2009. The first initiative within this program was support to the companies key to the defense and security industry of Poland with a budget of 1.5 bn Polish zlotys.
On August 14, 2009 the Ministry of Economy of Poland adopted another program within this framework to support companies in regions mostly hit by the current crisis. Small and mid-size companies of key importance to the Polish economy, in good financial condition but with temporary difficulties finding external financing from four sectors may apply for support. These sectors are automotive, textile, chemical and wood products and were chosen by the Ministry. Total amount of funds available is 5 bn Polish zlotys.
Under the scheme announced on 14 August 2009 support for companies can take the form of loans, guarantees, purchases of bonds issued by the beneficiaries or capitalisation. The body responsible for managing the fund is the Agency for Industry Development. Choice of banks offering guarantees and loans is underway and the program is supposed to start functioning within the coming weeks.
The scheme is likely to have consequences for foreign commercial interests because the chosen sectors are open to international trade and investment. Such state aid may discourage the exit of certain Polish firms from the market, shifting the burden of adjustment on to others. Furthermore, on the basis of the information available, it is not possible to rule out whether the application of these measures will be selective.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | No |
| Is there any evidence that alternatives to the proposed measure were considered? | No |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | No |
| Was such evidence identified? | No |
| Is such evidence publicly available? | No |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | No |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | No |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | No |
| Did the government state its intention to review the measure within one year of implementation? | No |
Date Discovered: 17/08/2009
Implemented: No
Date of inception: 14 Aug 2009
Duration: 20 months
GTA Evaluation: Red
Source:
Ministry of Economy, Press release of May 26, 2009, Wsparcie dla inicjatyw pobudzających polską gospodarke
http://www.mg.gov.pl/Wiadomosci/Strona+glowna/Wsparcie+dla+inicjatyw+pob...
Polish Government, Press Release
http://www.kprm.gov.pl/s.php?doc=1889
Government Response:
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