New bank will guarantee loans for small and medium sized companies

A loan guarantee system for small and medium sized companies is to be introd uced next year at the latest. The project of creating a guarantor bank, whic h would have shares worth several billion zloty in state-owned companies, ha s just been submitted for inter-departmental debate. Under the project, the new bank would take over zl. 110 million in loans from Bank Gospodarstwa Kra jowego (BGK), and zl. 70 million from Fundusz Stabilizacji (the Stabilizatio n Fund). It would also get a minority stake of up to 25% of the capital of s ome companies. The bank would operate according to the same laws as other fi nancial entities, yet it would not provide regular banking services, such as giving credits or accepting deposits. After the bank is created, 16 regional guarantee funds are to be established, which would give guarantees to small and medium sized companies reaching 75% of the total value of the loan, and would get a re-guarantee from the bank amounting to 80% of the guarantee." T he system is based on a German idea, and its aim is to ensure that lack of m oney is no obstacle for companies that have good ideas and present convincin g business plans," said Treasury Ministry Undersecretary of State Barbara Mi sterska. (Rzeczpospolita, p. B2) K.S.