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Bank Gospodarstwa Krajowego (BGK) has, in fact, existed since 1924. It was created by a President of the Republic of Poland ordinance of May 30th, 1924 on the joining (fusion) of State Crediting Institutions into Bank Gospodarstwa Krajowego. On March 14th 2003, the Seym of the Republic of Poland passed the Act on Bank Gospodarstwa Krajowego. The draft of the act was prepared by the Government within the frameworks of realizing the economic strategy program called “Entrepreneurship – Development –Employment”. Due to the nature of the activity assigned to BGK, comprising of performing public tasks, it occupies a special position among the other banks operating on the Polish banking market. Regulation of the basic principles and the scope of BGK’s activity became necessary both due to legal and formal issues, as well as in the face of integration with the European Union. Even though the act on Banking Law contains regulations concerning the creation and organization of state banks, the Government drafted (and the Parliament approved) a separate legal act for BGK. This seems justifi able due to the scope of departures from the regulations in the Banking Law and the specifi c nature of BGK’s activity. Within the negotiations of the European Union, Poland strove for the placement of BGK on the list of exceptions, contained in the Directive of the European Parliament and of the Council 2000/12/EC (presently 2006/48/EC) relating to the taking up and pursuit of the business of credit institutions. The Union accepted the abovementioned position (European Union Common Position CONF-PL-66/00) and BGK received a subjective exclusion. It must be noted that institutions of a nature similar to that of BGK, excluded from the provisions of the said Directive, operate in European Union member states, examples of which may be Instituto de Credito Comercial (ICO) in Spain or Kreditanstalt fur Wiederaufbau (KfW) in Germany.1

Bank Gospodarstwa Krajowego (Domestic Management Bank) as a Financial Institution in the State Public Finance System