ANNOUNCEMENT 26 May 2009In May 2009, the government of Poland announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Ministry of Economy, Press release of May 26, 2009, Wsparcie dla inicjatyw pobudzajacych polska gospodarke
Polish Government, Press Release
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 (ca. USD 1.7 bn).
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.