EC approves next element of Poland’s financial shield

The European Commission on Friday approved a EUR 1.6 bn Polish aid programme to compensate businesses for losses suffered as a result of the COVID-19 pandemic and to provide liquidity support.

The programme, to be managed by the Polish Development Fund, is part of a financial shield for large enterprises. The financial shield's total budget is worth nearly EUR 5.5 billion and will be available to large companies and to some medium-sized enterprises registered in Poland.

Deputy head of the European Commission Margrethe Vestager said in a statement on Friday that, thanks to the programme, businesses will be able to continue operating during the coronavirus pandemic and when it is over.

The assistance will be granted in the form of subsidised loans bearing interest on favourable terms. Businesses will have until September 30, 2021 to repay the loans. Repayments should not exceed 75 percent of actual damages suffered by the companies, between March 1 and August 31 this year, due to the coronavirus pandemic. As a result, immediate liquidity will be provided through the loans to beneficiaries of the aid.