Restructuring support for enterprises by banks and guarantee funds

Abstract

For efficient recovery of an enterprise in crisis good regulations and financial leverage are necessary. Enterprises and banks in Poland received new efficient law and financial instruments for restructuration in the Restructuring Law. In the future, the priority will be the recovery of enterprises. Banks and saving and loan associations and guarantee funds may play an important role in the recovery processes for enterprises in crisis. The article presents the functions and instruments of banks, including the application of mezzanine capital. Without the provision of “survival capital” by banks or associations, in many situations the restructuring will not be possible. The way in which enterprises see the contemporary support of the banks for restructuration processes is presented in the study conducted under the leadership of the author. In the last years, though, barriers to restructuration existed, e.g. in banks they include risk regulations, capital adequacy and banking tax.