ANNOUNCED AS TEMPORARYYes
On 7 April 2009 Poland notified a support scheme for banks' funding in Poland - State Aid N208/2009. On 13 March 2009 the Law on the provision of State Treasury support to financial institutions came into force. It aims at reinforcing stability in the Polish financial markets with a support scheme in order to address the short and medium term financing needs of financial institutions.
The support scheme specifies six categories of financial institutions established in Poland, including subsidiaries of foreign financial institutions established in Poland, that are eligible to benefit from the scheme. These are banks registered in Poland, registered insurance undertakings, brokerage houses, investment funds, pension funds and cooperative savings and credit unions, which are considered as solvent by the Polish authorities.
The measures provided under the scheme can be subdivided into two following categories: State Treasury guarantees and State Treasury bonds related support measures.
According to the State budget adopted for 2009 the limit of all the State Treasury guarantees for 2009 accounts for up to PLN 40 billion 'ca. EUR 9.6 billion'. The budget for the support in the form of lending of the Treasury bonds or sale of Treasury bonds may amount in 2009 to maximum PLN 10 billion.
The Commission stated that the measures constitute State aid within the meaning of Article 87(1) of the EC Treaty and gave the following assessment:
" The guarantee on the new issued debt in interbank relations or for the repayment of a refinancing credit provided by the National Bank of Poland, allows the beneficiaries to refinance themselves at advantageous conditions. The acquisition of Treasury bonds provides the beneficiary banks with access to liquidity at preferential terms, which they would not receive on the market. The Commission is convinced that in the current circumstances of financial crisis no private investor would have granted such significant amount of liquidity or guarantee on the senior debt to the participating banks. This gives an economic advantage to the beneficiaries and strengthens the position of these beneficiaries compared to that of their competitors in Poland and other Member States and must therefore be regarded as distorting competition and affecting trade between Member States." (par. 32 of the letter from the EC to Poland - Brussels, 25.09.2009 C (2009) 7444 final).
Article 87(3)(b) of the EC Treaty enables the Commission to declare aid compatible with the Common Market if it is "to remedy a serious disturbance in the economy of a Member State." This aid has to be applied restrictively and must tackle a disturbance in the entire economy of the Member State according to the interpretation of the Article 87(3)(b) by the Court of First Instance.
The Commission referred to its Communication on the financial crisis (Temporary Framework) and concluded that the Measure complies with the conditions laid therein. Therefore, despite the measure constituting State aid pursuant to the Article 87(1) EC, it is compatible with the Common Market according to the Article 87(3)(b) EC Treaty. The Commission raises no objections against the measure at issue and authorizes it as emergency intervention in the face of the current financial crisis. (par. 34-51of the letter).
Multiple prolongations of the of the support scheme for banks' funding in Poland - State aid N658/2009,N236/2010, N533/2010 and SA.34081
On 26 November 2009 Poland requested a first time to prolong the scheme until 30 June 2010, which was approved by the Commission in its decision of 9 February 2010 in State aid case N 658/2009.
On 8 June 2010 Poland notified a further prolongation of the scheme, which was approved by the Commission on 29 June 2010 in State aid case N 236/2010.
On 15 November 2010 Poland notified a third prolongation of the scheme until 30 June 2011 in State aid case N 533/2010.
On 28 June 2011, a fourth extension of the scheme (SA:33008)
On 8 February 2012 a fifth extension of the scheme (State aid SA.34081) until 30 June 2012.
On 9 July 2012 a sixth extension of the scheme (SA.34811)
On 29 january 2013 a seventh extension of the scheme (SA.35944)
On 3 July 2013 a eighth extension of the scheme until 31 December 2013. (SA.36965)
On 19 December 2013 a ninth exntension of the scheme until 30 June 2014. (SA.38023)
On 29 July 2014 a tenth extension of the scheme until 31 December 2014. (SA.39015)
On 27 January 2015 a eleventh extension of the scheme until 30 June 2015. (SA.40096)
On 24 August 2015 a twelth extension of the scheme until 31 December 2015. (SA.42560)
On 1 February 2016 a thirteenth extension of the scheme until 30 June 2016. (SA.43924)
On 1 July 2016, a fifteenth extension of the scheme until 31 December 2016. (SA.45575)
On 19 December 2016, a fourteenth extension of the scheme until 30 June 2017. (SA.46871)
On 5 July 2017, a sixteenth extension of the scheme until 30 November 2017. (SA.48227)
On 7 December 2017, a seventeenth extension of the scheme until 31 May 2018. (SA.49404)
In all these cases, the EC decided not to raise objections and declared them compatible with the internal market.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
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