Poland To Launch $30 Billion Economic Plan For 2009-2010

Warsaw, Poland (AHN) - Poland is preparing to launch a 91.3 billion-zloty ($30.1 billion, 24 billion euros) economic package for the next two year to tackle with the on-going financial crisis and deepening recession.

Prime Minister Donald Tusk said in his speech on Sunday that Poland is adopting the economic package to bring stability to the country that is still developing.

"These decisions are aimed at fighting the effects of the crisis and will not hurt the stability of public finances, as well as Poland's credibility, as the country is not in a bad situation in spite of the crisis," Tusk was quoted saying by Bloomberg News.

The country also lowered its economic growth forecast for 2009 to 3.7 percent, from its previous estimate of 4.8 percent for the same period. The economic growth of the country was reported to be at 6.7 percent in 2007.

"The programme has three objectives: to maintain financial stability to safeguard Poland's credibility, (provide) effective protection for the poorest people hit by the world crisis, and maintain economic development to catch up with Europe's richest countries," Tusk was quoted saying by AFP news agency.

Poland has not yet faced recession as its economy advanced by as much as 4.8 percent in the third quarter from the year earlier period. It is considered as the largest economy in the European Union's eastern region.

Under the stabilization and development program, the authorities are planning to increase excise tax on alcohol and imported vehicles to support social aid. The regulators will provide 40 billion zloty to increase its cap on bank guarantees in 2009.