COVID-19 stimulus for large firms from August: official

Funding of PLN 25 bn (EUR 5.7 bn) for large companies from the COVID-19 financial shield should be paid out from August, Bartosz Marczuk of the Polish Development Fund (PFR) said on Tuesday.

The third tranche of funding, which will be allocated to companies which employed more than 249 employees or have sales of over EUR 50 million and total assets of over EUR 43 million is aimed at companies who declare that they will retain employment at existing levels.

“We are processing funding for larger firms. This is an additional PLN 25 bn (EUR 5.7 bn), which will reach companies in August and in the months ahead,” Mr Marczuk said.

The pool of cash for larger firms follows payouts to smaller and medium-sized enterprises (SME), who have already claimed PLN 60 bn of a total of PLN 75 bn available. The deadline for applying for SME funding is July 31, Mr Marczuk told commercial radio.

More details were given by the Chairwoman of The Polish Development Bank BGK, Beata Daszyńska-Muzyczka, which funds the PFR initiative by emitting bonds. “The total potential of the fund is PLN 100 bn (EUR 23 bn) . At this moment we have obtained PLN 66 bn (EUR 15 bn) and we have disbursed 46 bn (EUR 10.5 bn).

The bank is not rushing to raise the full amount of funding, as each issue is “expensive”. Ms Daszyńska-Muzyczka said that some funding may be needed later on the year. “ I would rather make savings now in order to be ready for the autumn,” she said.

The Head of BGK said, however, that no-one expects a return to full lockdown. “We know what action to take now and what to avoid.”