(WARSAW) - Poland's Finance Minister Jan Rostowski on Monday announced legislation aimed at raising state guarantees on bank deposits from the current 22,500 euros to 50,000 euros.

"We will adopt solutions that allow the government to guarantee deposits for private individuals up to 175,000 zlotys (50,000 euros)," Rostowski told reporters.

The draft, on the heels of an EU-wide decision to guarantee bank deposits up to 50,000 euros, will be sent to parliament on Tuesday, he said.

Up to now the government guaranteed 90 percent of bank deposits up to 22,500 euros.

Rostkowski also announced a draft law authorising the government to loan money, when necessary, to a bank guarantee fund serving Polish banks.

"If necessary, it will be possible for the state to recapitalize banks. We must be ready, even if we do not foresee the necessity," Rostowski said.

"Like many states, faced with the crisis on global markets we are taking precautions," he added.

The National Bank of Poland (NBP) also unveiled measures Monday aimed at calming markets.

NBP President Slawomir Skrzypek announced a "confidence package" aimed at renewing investor confidence in Poland's banking sector that steered clear of the so-called toxic financial instruments which spawned the global crisis.

Providing no details of the planned measures, Skrzypek insisted that Poland's banks were sound and were facing "no solvency problems" and that the level of suspect credit was historically low.

To confront what he termed an "unfounded ... lack of confidence," he said the bank "will propose a 'confidence package' but only after consultations with banks operating in Poland."

He said the measures would be designed to revive markets while assuring an adequate flow of liquidity.

He denounced what he called "a crisis of confidence," which he said had been "imported" into Poland.

The planned move by Poland followed a meeting in Paris on Sunday of eurozone leaders that agreed on steps to shore up strapped commercial banks, which have shown themselves reluctant to lend money in the current financial turbulence.

Poland is a member of the European Union but not the eurozone.

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