The budget for a new support instrument for Polish companies interested in participating in the reconstruction of Ukraine amounts to PLN 250 million (approximately $66 million). The Ministry of Funds and Regional Policy (MFiPR) and Bank Gospodarstwa Krajowego (BGK) are preparing a preferential loan offer from which companies can finance preparations for this process. The focus is, among other things, on increasing production, logistics, or export capabilities, but within the territory of Poland.
“Recently, as the Ministry of Funds and Regional Policy, together with the National Economy Bank, we signed an agreement to support Polish entrepreneurs who are interested in participating in the reconstruction of Ukraine or are already involved in this process. This agreement will allow the preparation of a loan instrument, which the National Economy Bank will be the operator of”, Marcin Chruściel, Director of the Office for Polish-Ukrainian Development Cooperation in the Ministry of Funds and Regional Policy, explained in an interview with Newseria Biznes agency.
The budget allocated for preferential loans is PLN 250 million. Entrepreneurs from various sectors who have experience, know-how, and products and services that can contribute to the reconstruction of Ukraine can benefit from them. Representatives of the ministry emphasize that the interest of domestic companies in participating in this process is high, indicated by the fact that over 3,000 entities have registered with the Polish Investment and Trade Agency’s “Reconstruction of Ukraine” database. The maximum value of the loan can be up to PLN 10 million, and its maximum lending period is 10 years. The interest rate on these loans will also be much lower than the market interest rate – standardly 2% per annum.
“We expect that at least 25 Polish enterprises will obtain funds to expand their production base, adapt their capabilities to enter the Ukrainian market or strengthen their presence there. The de facto effect of this program will be new investments on the territory of Poland – in the assumptions of this project, it is written that these funds must be spent on the territory of Poland, but precisely with a view to strengthening their capacity and preparing to enter the Ukrainian market or increasing exports to this market”, Marcin Chruściel explains.
Companies will be able to use the funds from the loan, among other things, to increase their production capabilities, organize transport, storage, and logistics related to the delivery of goods and services to Ukrainians, construction materials, machines and technologies useful in the reconstruction of Ukraine after the war, as well as develop cooperation with firms from across the Eastern border.
“We do not know when the war will end, the war activities are still ongoing, but we have to think about the future and we have to prepare for the scenario that this war can end in the near perspective. We want Polish companies to be ready for the moment when large infrastructure projects are launched in Ukraine, and the time to prepare is now”, explains the representative of MFiPR.
He emphasizes that BGK is looking for partners among financial institutions that will provide preferential loans from the program. The recruitment of loan applications is set to start in the first quarter of 2025.
“Polish companies can enter the Ukrainian market now through EU instruments, but also through the activities of the Polish Trade and Investment Agency and KUKE, and gain their first experiences, look for business partners. They can also prepare here in Poland, i.e. use preferential loans, build their production base, acquire logistics, storage capabilities, so that they are ready for economic expansion the day after the war ends, to be ready to enter with new investments in the Ukrainian market and be able to take part in large tenders that will be implemented”, says Marcin Chruściel.
The new program will be complementary to the EU’s support mechanism for investment in Ukraine “Ukraine Facility”, whose offer is prepared for companies already operating on the Ukrainian market.
“We are now creating the second leg for this system, i.e. we provide support for those companies that want to develop their activities in Poland in the first stage and prepare for this reconstruction when the risk will be smaller and the conditions for investing in Ukraine will be better”, the expert emphasizes. “We are also discussing additional support mechanisms for Polish companies, but our ministry is not leading in this process, so I would not like to reveal details. An important role in this case is played by the chairman of the Council for Cooperation with Ukraine, Paweł Kowal.”
As informed by BGK, support will also be available for companies from the Podlaskie Voivodship, who feel the adverse effects of the so-called buffer zone adjacent to the border with Belarus. A separate support instrument, which allows for the possibility of writing off the transferred funds, MFiPR launches for enterprises from flood areas (Lower Silesian, Opolskie, Silesian, Lubuskie voivodships).
