Poland's cabinet approved a bill aimed at strengthening liquidity in the banking sector, Prime Minister Donald Tusk said on Tuesday.
The bill contains guarantees on interbank deposits, Polish news agency PAP quoted Finance Minister Jacek Rostowski as saying. Guarantees will only be issued to banks with a strong capital base and will cover up to 50 percent of the outstanding loan.
The guarantees will be available to stable and safe banks, will not be full or free, and their terms will approach the terms of commercial guarantees available before the onslaught of the international financial crisis, according to Rostowski.
Under the bill support can be given TFI (Investment Fund Society) funds and insurers with a seat in Poland, the government information center said in a statement.
"The state treasury could also issue repayment guarantees of loans granted by banks to other banks to keep their liquidity," the center said.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article