Home » EIB and Bank Gospodarstwa Krajowego (BGK) successfully issue first tranche of bonds under EIB solidarity package
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EIB and Bank Gospodarstwa Krajowego (BGK) successfully issue first tranche of bonds under EIB solidarity package

The EIB solidarity package is the support provided within the cohesion policy to address the negative effects of Russia's aggression against Ukraine.

The EIB solidarity package is the support provided within the cohesion policy to address the negative effects of Russia’s aggression against Ukraine. The bank will provide aid primarily to EU member states that are affected by the migration crisis. The EIB approved the package in May 2022 for a total amount of €4 billion, of which €2 billion will be allocated to Poland as a specific support to the national Aid Fund *. Thanks to the agreements signed by the EIB and BGK, Poland will receive the first tranche of €600 million. The money will go to local governments that host refugees from Ukraine.

Teresa Czerwińska, Vice President of the EIB, said: “The European Investment Bank very quickly launched earlier this year a consistent support package for Ukraine as well as for EU countries hosting refugees from the war. The agreement with BGK, which is now finalized, is the latest example of our comprehensive action. This specific support will allow local government authorities to upgrade their infrastructure and adapt it to the new needs resulting from the permanence of Ukrainian refugees in Poland. An overall envelope worth two billion euros for investments in Poland is a significant element of the European Investment Bank’s commitment to counteract the effects of the war in Ukraine all over the EU. This action for EU countries tops the direct support given by the EIB to the government of Ukraine since March. The latest financing for Ukraine, worth 1.5 billion euros, was approved by the EIB in July. “

The EIB will support Poland’s efforts to provide shelter to millions of refugees from Ukraine. On one hand, aid will alleviate the social and economic consequences of the war, and on the other, it will enable the integration of refugees.

Polish support to Ukrainian refugees is the biggest one. We have to obtain this money, unfortunately not in the form of grants. The agreement with the EIB allows us to add more financing to the Aid Fund by issuing bonds. Thanks to this support local governments can cover the expenses related to sheltering of 2.5 million refugees permanently staying in Poland.” – says the president of the management board of Bank Gospodarstwa Krajowego, Beata Daszyńska-Muzyczka.

From the Aid Fund BGK will be able to finance up to 100 percent of projects’ costs, this is an exception to the EIB’s general rule of limiting funding to 50%. Entities implementing projects will also be able to use advisory services related to the preparation and implementation of these projects (the so-called EMBRACE platform). The advisory services offered by the EIB should increase the efficiency of the use of the funds made available and the swift implementation and monitoring of projects.

* The Aid Fund was established by the Act on the 12th  of March 2022 to provide financing for all activities and projects necessary to help (and integrate) Ukrainian refugees and to ensure the security of food supplies in Poland. The fund is serviced by the Polish development bank – Bank Gospodarstwa Krajowego.

Background information

The European Investment Bank (EIB) finances projects in four priority areas — infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). In 2021, the EIB Group provided   €6.5 billion in financing to projects in Poland. Part of this financing — equivalent to €1.5 billion — went to projects directly related to innovation, research, digital transformation and the development of human capital.

Bank Gospodarstwa Krajowego (BGK) is a Polish development bank, the only such institution in the country. BGK supports the sustainable socio-economic development of Poland. Its activities contribute to the creation of jobs, construction of apartments, development of infrastructure and improvement of air quality. The bank cares for future generations – it builds social capital, develops entrepreneurship and provides responsible financing. It is present in every region of Poland, as well as abroad – it has its offices in Brussels, London, Frankfurt am Main and Amsterdam. BGK supports exports and foreign expansion of Polish companies. It is the originator, co-founder and main shareholder of the Three Seas Fund, which invests in transport, energy and digital infrastructure in the countries of the Three Seas region. BGK, through cooperation with business, the public sector and financial institutions, responds to economic needs and undertakes a number of initiatives promoting sustainable development.