- The EIB and BGK have released the second tranche of bonds from the EIB’s Solidarity Package in record time since the first tranche was issued in October. Poland will receive €600 million in the second tranche.
- The first tranche In October was for €600 million. Currently, the bonds amount to €1.2 billion in total.
The Solidarity Package of the European Investment Bank (EIB) consists of cohesion policy support to address the consequences of the Russian aggression against Ukraine. The EIB is primarily providing aid to EU Member States that are struggling with the migration crisis. It approved the €4 billion package in May 2022, with as much as €2 billion going to Poland as support for the Assistance Fund*. Thanks to the agreements signed by the EIB and BGK, Poland will now receive the second tranche amounting to €600 million (Poland has already received €1.2 billion in total). The money will go to municipalities, regions and public entities that are hosting and organising the integration of Ukrainian refugees.
EIB Vice-President Teresa Czerwińska said, “Together with BGK, we are releasing the second tranche from the EIB’s Solidarity Package in record time. Another €600 million in support (and €1.2 billion in total to date) is going to Poland. This assistance is very much needed because regions that are receiving refugees must adapt their infrastructure to meet the new challenges as soon as possible. We believe that this support will not only result in faster integration of refugees, but will also help increase investment and boost the local economy. Since the beginning of the war, the EIB’s response has been immediate. It has made every effort to support both refugee-hosting countries and Ukraine.”
“BGK has been involved in helping Ukraine from the very outset of the war. We act in solidarity and are guided by empathy. This can be seen not only in the actions of the Bank, but also in all those who have given shelter to our neighbours from Ukraine. Poland is the country that has accepted the greatest number of refugees and has spent most on hosting them — the costs involved are huge. The funds borrowed from the European Investment Bank will allow this assistance to continue,” said Tomasz Robaczyński, member of BGK’s management board.
BGK will be able to finance up to 100% of project costs from the Assistance Fund. This is an exception to the EIB’s general rule, which limits financing to 50%. Entities deploying projects will also be able to take advantage of advisory services relating to the preparation and implementation of those projects (the EMBRACE platform). The advisory services offered by the EIB should help to ensure that funds are used more efficiently and that projects are implemented and monitored more rapidly.
* The Assistance Fund was established by the Polish Parliament on 12 March 2022. Its purpose is to provide financing for all measures and projects necessary to help (and integrate) Ukrainian refugees and to ensure food security in Poland. The fund is operated by the Polish development bank, BGK.
Background information
In 2021, the EIB Group allocated €6.5 billion to finance projects in Poland.
The Bank Gospodarstwa Krajowego (BGK) is a Polish development bank, the only such institution in the country. BGK supports Poland’s sustainable social and economic development. Its activities impact job creation, housing construction, infrastructure development and improvement in air quality. BGK cares about future generations. It builds social capital, develops entrepreneurship and ensures responsible financing. It is present in every region of Poland, as well as abroad — it has representative offices in Brussels, London, Frankfurt and Amsterdam. BGK supports the exports and foreign expansion of Polish companies. It is the originator, co-founder and main shareholder of the Three Seas Initiative Investment Fund, which invests in transport, energy and digital infrastructure in the countries of the Three Seas region. Through cooperation with business, the public sector and financial institutions, BGK responds to economic needs and undertakes a number of initiatives to promote sustainable development.