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Poland considers loan guarantees for banks

Poland considers loan guarantees for banks

Prime Minister Donald Tusk and his Cabinet approved a plan on Tuesday that would offer loan guarantees to any bank suffering from a shortage of credit.
The proposal follows western European nations' approval earlier this month of wider-ranging plans to shore up the financial sector, which have included governments providing fresh capital to banks by taking stakes in them.
Under the Polish proposal, which requires the approval of parliament and President Lech Kaczynski, the government would guarantee interbank loans. The help would be available to banks, insurance funds and other financial institutions based in Poland.
The government did not say how much it might offer in guarantees.
"The probability that any of these guarantees will have to be used is minimal," Kaczynski told reporters after discussing the economic situation with Tusk and his Cabinet.
Polish officials have stated repeatedly that the economy of the country _ the largest of 10 ex-communist nations that have joined the European Union in recent years _ is in good shape despite the global financial crisis.


Updated : 2021-10-21 02:43 GMT+08:00