Document Type

Case Study

Case Series

Credit Guarantee Programs

JEL Codes

G01, G28


Faced with the global financial crisis of 2007–2009, Poland implemented a scheme of State support for financial institutions. In view of a potential global credit crunch, it aimed at improving short- and medium-term liquidity of domestic financial institutions. The scheme came into force on March 13, 2009, and was approved by the European Commission under European Union State Aid rules on September 25, 2009. The scheme enabled the Ministry of Finance, on behalf of the State Treasury, to provide support in the form of Treasury guarantees on newly issued bank debt and the exchange of Treasury bonds for less liquid assets. This case exclusively examines Treasury guarantees on debt securities. Initially, only domestic banks, including subsidiaries of foreign financial institutions, could apply for guarantees. In 2011, eligibility was expanded to include cooperative savings and credit institutions and the National Cooperative Savings and Credit Institution. An initial overall cap was set at PLN 40 billion ($13.7 billion) before being raised to PLN 160 billion in 2012. The European Commission approved 19 prolongations of the scheme—the last in December 2018. No institutions applied for coverage and the issuance window expired on May 31, 2019.

Date Revised