“The Polish State Bank will distribute part of the European money for the reconstruction of Ukraine. How to get them business?”, — write: epravda.com.ua
Ukraine is actively working to restore the war-ravaged economy and infrastructure. Therefore, financial support from the European Union is crucial in this process. One of the main tools developed by the European Commission to support the recovery of Ukraine is the Ukraine Facility. This instrument is aimed at providing stable and predictable financial assistance to Ukraine during 2024-2027. It will make it possible not only to restore the infrastructure, but also to modernize the economy, attract investments and support the reform process. Ukraine Facility envisages three groups of financial opportunities to meet short-term and medium-term needs of Ukraine: Advertising: 1. Financial assistance. The European Commission allocates 39 billion euros for the period 2024-2027 to ensure the financial stability of Ukraine. Funds will be provided in the form of grants and loans to the state to cover Ukraine’s urgent needs and ensure sustainable economic growth. Read also: “They teach us to be a member of the EU.” Deputy Minister of Economy Sobolev on Ukraine’s plan for 50 billion euros 2. Investment framework. One of the goals of the Ukraine Facility is to attract and mobilize both public and private investments through the provision of guarantees and mixed financing that combines EU loans and grants. Advertisement: These financial instruments should contribute to the reconstruction of small, medium-sized enterprises and local communities, and will also allow foreign companies to act as contractors in large-scale infrastructure projects in Ukraine. A good example is transport companies that plan to build intermodal terminals. In particular, they will be able to use the financial assistance tool. 3. Technical assistance and other support measures. Another 3 billion euros will be allocated for technical support of reforms, assistance to municipalities and civil society. The third group of instruments provides for grants to repay interest on loans and other forms of bilateral assistance, which are usually available to candidate countries under the Instrument for Pre-Accession Assistance (IPA), which also supports the objectives of the Ukraine Plan. In general, the Ukraine Facility is financing in the amount of EUR 50 billion, of which EUR 17 billion are grants and EUR 33 billion are loans. This amount is a significant resource for the stable recovery of the economy and infrastructure of Ukraine. The Polish Development Bank (BGK) is the only Polish institution accredited by the European Commission to participate in the implementation of the Ukraine Facility. BGK will participate in the tender for proposals for the provision of bank guarantees to support projects in Ukraine. Thanks to this, companies registered in Ukraine will have access to favorable project financing conditions, which will contribute to the economic development of Ukraine. After receiving funds and signing an agreement with the European Commission, BGK will offer entrepreneurs two main financing mechanisms: 1. Direct financing from BGK. Lending of long-term projects with a minimum preliminary cost of about 10 million euros. The maximum cost of the project has not yet been determined, while an own contribution will be required, the amount of which is not yet known, and the interest rates will be market-based and will vary depending on the sector and investment profile. 2. Financing of small and medium enterprises. With the participation of Ukrainian banks, BGK will work on supporting small and medium-sized enterprises, providing guarantees for attracting investments. Business opportunities Entrepreneurs who want to participate in the reconstruction of Ukraine have a unique opportunity to take advantage of the Ukraine Facility. The Ukraine Facility is an important program of financial assistance for the reconstruction of Ukraine, which aims to attract significant investment and support from the EU and provide Ukrainian entrepreneurs and international investors with access to financing for the reconstruction and development of infrastructure, accelerating the economic development of the country. Companies seeking to use Ukraine Facility financial instruments can submit their projects, specifying the name, sector, project start date, implementation stages, region, initiators and cost. This will allow BGK to focus on key areas of economic development and identify specific projects for the reconstruction of Ukraine. The first contracts are expected to be signed in late spring 2025. The Union of Entrepreneurs and Employers of Poland (ZPP) is involved in the collection of proposals. ZPP calls on entrepreneurs to participate in the identification of business projects that can be largely financed by BGK within the framework of the “Ukraine Facility” program.