The Polish government has concluded an agreement with the Ukrainian government on the status of BGK in Ukraine

The agreement will enable, among other things, the implementation of preferential financial mechanisms by BGK in Ukraine using instruments from the European Ukraine Facility.

The agreement will enter into force after its ratification by Ukraine. The agreement also guarantees the free transfer of funds to and from Ukraine regardless of any payment moratoriums in force in Ukraine, the possibility of not applying Ukrainian public procurement law to investments benefiting from instruments offered by BGK, and the exclusion of BGK financing from Ukrainian banking law – BGK will apply Polish and European banking regulations.

The conclusion of an agreement between the governments of the Republic of Poland and Ukraine will allow BGK to obtain a status similar to that of other institutions and development banks operating in Ukraine. Similar agreements have been signed by, among others, Germany's KFW and France's AFD. The agreement will enable, among other things, the implementation of preferential financial instruments by BGK in Ukraine using instruments from the European Ukraine Facility and the Financial Instrument for Development Cooperation. The agreement will also regulate the activities of BGK's representative office in Ukraine and the status of its employees, as well as clarify BGK's tax status in Ukraine.

Mirosław Czekaj, President of BGK

Under the Polish-Ukrainian government agreement, BGK will be able to implement development cooperation projects in Ukraine. We will carry out these activities ourselves or through Ukrainian banks. Our offer will benefit entrepreneurs from both countries and the public sector, i.e. local governments and municipal companies. This includes, among other things, loans and guarantees for projects aimed at rebuilding Ukraine, mainly from the European Ukraine Facility. This is a new chapter in Polish-Ukrainian economic relations and, at the same time, part of the implementation of our strategy, which assumes BGK's participation in building foreign cooperation.

Prof. Marta Postuła, First Vice-President of BGK

BGK's activities in Ukraine will be protected by an international agreement, which will be ratified by the Ukrainian Parliament. In practice, this means that the provisions of this agreement will prevail over the legislation introduced in Ukraine, as international agreements take precedence over national law. In a situation where the Ukrainian side restricts payment flows to Poland, payments directed to BGK will be exempt from restrictions, including the repayment of loan obligations from Ukrainian entities. In addition, the portfolio guarantee offered by BGK through local banks will be treated by the National Bank of Ukraine (NBU) on terms similar to the guarantees of other development institutions operating in Ukraine.