Brussels, 21/12/2009 (Agence Europe) - On Monday 21 December, the European Commission approved a Polish scheme designed to maintain stability in the Polish financial sector by underwriting capital increases to eligible financial institutions. Poland is proposing underwriting, in the form of preferential shares or subordinated debt instruments, up to 100% of capital increases of financial institutions that are unable to obtain the required financing from the market. The scheme is open to all banks or insurance companies established in Poland (whether Polish or foreign-owned) and applies to both financially sound and distressed financial institutions. The Commission found the recapitalisation scheme to be in line with its guidance communications on state aid to overcome the financial crisis insofar as it is limited in time and scope, requires market oriented remuneration and contains sufficient safeguards to avoid abuses. The Commission concluded, therefore, that the scheme was an adequate measure to remedy a serious disturbance of the Polish economy and was compatible with Article 107.3.b of the Treaty on the Functioning of the EU. The scheme complements the liquidity support granted under the support scheme for banks' funding in Poland which was approved by the Commission on 25 September 2009. (O.L./transl.rt)