20 years of European Funds at BGK. The bank showed the effects

Loans, guarantees and credits - what do they have in common with European Funds? This is the support offered by Bank Gospodarstwa Krajowego (BGK), among others, from European funds. BGK is one of many institutions that has been involved in the implementation of European Funds in Poland since its inception in 2004. To date, the bank has supported more than 122,000 entities for a total amount of nearly PLN 27 billion.

The funds that have made their way into the economy through Bank Gospodarstwa Krajowego are the result of years of work and the commitment of thousands of people who make up the institution. It is a unique ecosystem in the European Union (EU), which connects the Polish development bank with other banks and non-bank financial institutions that operate at the regional and local levels - Prof. Marta Postuła, First Vice President of the Management Board at Bank Gospodarstwa Krajowego

What was it like?

As early as 2004, BGK had been implementing a pre-financing instrument that was of enormous interest to local government units. The instrument covered the six most important operational programmes in the 2004-2006 financial perspective (about 2,500 agreements concluded).

In the next perspective - 2007-2013 - the range of supported programmes and the roles played by the bank were expanded. Support in regional programmes and the Operational Programme Development of Eastern Poland went to 11 voivodeships, and the total amount that was allocated for loans is more than PLN 5 billion.

Among other things, entrepreneurs reached for a technology loan, which they used to implement new technologies and launch new products/services. Interest among entrepreneurs was so high that they lined up in front of BGK days before the call for applications began. Currently, the call is conducted online, and interest is equally high. In the 2007-2013 perspective, the bank supported 660 projects, and the results of implementations even appeared on Mars.

In the 2014-2020 perspective, the institutions managing European funds entrusted BGK with almost 3 times more funds. The total amount the bank allocated to loans, guarantees and credits, among others, is more than PLN 19 billion.

Guarantees were granted from as many as three EU programmes, i.e. the COSME Programme, the Intelligent Development Operational Programme and the Rural Development Programme. As a result, BGK provided more than 56,000 guarantees to some 45,000 entrepreneurs.

What are the effects?

The past 20 years have been the most dynamic two decades in Poland's history in terms of development. In these processes Bank Gospodarstwa Krajowego could not be missed, which together with other institutions and ministries implemented and continues to implement European funds. These are products implemented using structural funds, but also increasingly direct cooperation of the bank with the European Commission. Thanks to this, European Funds have become one of BGK's tools through which we implement our mission, which is the sustainable socio-economic development of Poland - Prof. Marta Postuła, First Vice President of the Management Board at Bank Gospodarstwa Krajowego

Over the past 20 years, the bank has managed to reach every county in the country with its offer realized from the European Funds. It is worth noting that the repayable instruments of the EU (such as loans) after their repayment or release from guarantees remain in Poland and can be used for further financing of the country's development, for example, in the loan for the development of tourism in Eastern Poland we have already turned over the funds 4 times. A total of 5,804 hectares of land have been revitalized from EU loans. This is like revitalizing the area of the entire Legnica.

In the Technology Credit alone, BGK paid out technology bonuses worth more than PLN 4.5 billion, allowing Polish entrepreneurs to carry out nearly 1.5 thousand innovative investments worth more than PLN 10 billion. Also thanks to the Technology Credit, entrepreneurs introduced more than 1.7 thousand new or significantly improved products into the Polish and global markets and created nearly 5 thousand new jobs.

What's next?

Bank Gospodarstwa Krajowego will continue to be involved in the implementation of the Cohesion Policy with structural funds in Poland. In the current 2021-2027 perspective, the funds entrusted to the bank amount to €4 billion. They will contribute, among other things, to support the competitiveness of entrepreneurs - including the SME sector, green energy transition, but also self-employment, social economy entities or revitalization and tourism and cultural infrastructure.

In addition to these activities, the bank will also develop its competence in the implementation of direct instruments and development assistance (cooperation). In this way, BGK builds the competitiveness of the Polish economy, but also strengthens the position and credibility not only of the bank, but also of Poland.

Bank Gospodarstwa Krajowego is also involved in the implementation of products financed by the National Recovery Plan. We have already launched a call for a Loan to Support the Green Transformation of Cities, with a budget of nearly €8.9 billion, and we are implementing two subsidized housing instruments. The total pool of funds for which BGK can be responsible is more than 30 billion euros. These are measures that will help accelerate the energy transition, but also affect the country's security - Prof. Marta Postuła, First Vice President of the Management Board at Bank Gospodarstwa Krajowego

The full range of products implemented by BGK from the European Funds can be found on the bank's website.