Poland's development bank seeks extension of EU aid programmes

The Polish state-owned development bank BGK will negotiate an extension to all EU coronavirus relief programmes until the end of 2021, BGK CEO Beata Daszyńska-Muzyczka told a press conference on Monday.

"BGK has decided to start preparations for the extension of aid programmes and talks with the European Commission in order to prolong the programmes until the end of next year. Even if we don't have to use them, I believe we should be prepared beforehand," Ms Daszyńska-Muzyczka said.

The bank offers a range of aid instruments designed to respond to the effects of the coronavirus pandemic experienced by Polish companies, notably guarantees.

Meanwhile, Poland’s PM Mateusz Morawiecki pointed out that the first fiscal package, worth 10 percent of GDP, had been put in motion only two weeks after the lockdown was announced.

"The fact that Poland is in a better position than other countries is due to our fast response… We wanted to compensate for the lack of demand with a liquidity package addressed to companies," Mr Morawiecki said. According to the PM, 65 percent of Polish businesses have taken advantage of this option.