The Verkhovna Rada has officially authorized the operations of Poland’s state-owned Bank Gospodarstwa Krajowego (BGK) in Ukraine. This decision was announced following a ratification that aims to enhance financial and technical assistance for investment projects within the country.
According to Yegor Perelygin, Ukraine’s Deputy Minister of Economy, the agreement will enable BGK to provide support to the Ukrainian government and both public and private institutions. The assistance will come in various forms, including grants, loans, and other financial instruments, with project selection to be a collaborative effort between the governments of Ukraine, Poland, and BGK.
This new legal framework will grant BGK a status similar to that of other development institutions operating in Ukraine, allowing it to establish a presence in the country. The bank will be able to:
- Set up representative offices in Ukraine;
- Hire personnel from Ukraine, Poland, or other nationalities;
- Engage in negotiations, sign contracts, provide and receive guarantees, and conduct any other relevant activities.
The Ukraine Facility, a significant financial support initiative from the European Union, is set to provide €50 billion from 2024 to 2027 to bolster Ukraine’s budget and stimulate investment. The primary document for accessing these funds is the “Ukraine Plan,” which outlines necessary reforms and indicators—nearly 150 in total. Each fulfilled indicator can yield between €350 million and €600 million for Ukraine.
The last tranche from the EU was received on December 22, amounting to €2.3 billion, marking the sixth installment in the ongoing financial support program.
Bank Gospodarstwa Krajowego, established in 1924 and headquartered in Warsaw, is the only state-owned bank in Poland. It was created to support government socio-economic initiatives, local government programs, and regional development efforts.
The Verkhovna Rada has ratified the operational status of Poland's Bank Gospodarstwa Krajowego in Ukraine, facilitating financial support for investment projects. This move aligns with the broader EU initiative aimed at bolstering Ukraine's economy through substantial funding over the next few years.