It is being reported that Prime Minister Donald Tusk will, during a much-expected address to parliament at the end of September, announce plans to guarantee loans for SMEs as a means of preventing the Polish economy from slipping into recession.

There are talks currently underway between the government and Poland’s state-owned bank, Bank Gospodarstwa Krajowego (BGK), regarding the latter taking over some of the loan guarantee responsibilities, according to Puls Biznesu.

Moreover, the Finance Ministry is reportedly working on an overhaul of Polish credit regulations to make them more accessible to entrepreneurs.

Poland's GDP growth slowed to 2.4 percent year-on-year in the second quarter of 2012, according to data from the Central Statistical Office. This was the slowest growth since the third quarter of 2009.

This month, the Polish government approved a draft budget for 2013, forecasting 2.2 percent GDP growth in 2013, a significant downgrade from the 2.9 percent growth assumption contained in its previous forecast.

RA