EIB establishes cooperation with BGK on European Investment Advisory Hub and provides finance to small investment schemes in Poland
The European Investment Bank (EIB) and Bank Gospodarstwa Krajowego (BGK), Poland’s national promotional bank, have strengthened their long-standing and successful partnership by signing a Memorandum of Understanding setting out a framework for collaboration under the European Investment Advisory Hub (EIAH) as well as a EUR 125m loan agreement for the financing of small to medium-sized investments in infrastructure, and investments undertaken by small and medium-sized Polish companies.
László Baranyay, EIB Vice-President responsible for lending in Poland, said: “We are particularly glad to team up with BGK on yet another important European initiative in Poland – cooperation within the framework of the Advisory Hub, a comprehensive offer of advisory and technical assistance services with the aim of strengthening Europe's investment and business environment. This new partnership reinforces our excellent cooperation, consisting of joint financing of strategic road investments, social housing schemes, support for infrastructure and small businesses in Poland, such as the EUR 125m loan signed today”.
The Memorandum of Understanding, signed by EIB Vice-President Baranyay and BGK President Kacprzyk, initiated the cooperation between the two institutions under the EIAH. With this, BGK confirmed its willingness to participate, together with the EIB and the European Commission, in knowledge and best practice sharing initiatives in relevant areas of expertise within the EIAH’s field of activities. Furthermore, BGK confirmed that it was interested in actively involving in communication and promotion of advisory support programmes available under the EIAH.
The European Investment Advisory Hub is part of the Investment Plan for Europe, a joint European Commission/EIB initiative that aims to revive investment in strategic projects around Europe to ensure that money reaches the real economy.
The Advisory Hub seeks to strengthen Europe’s investment and business environment by enhancing the technical and financial capacity of public authorities and private actors in the Member States to identify, prioritise, prepare, structure, aggregate and implement strategic projects.
The EIAH offers a single point of entry to advisory and technical assistance services for investment projects in the EU, building upon the expertise of the EIB Group, the European Commission, national promotional institutions and Member States’ managing authorities. It also aims to enhance cooperation with and between existing and newly established national promotional institutions.
The EUR 125m loan, through intermediary of BGK, will support smaller projects carried out by public and private sector entities across Poland in the following sectors: industry, tourism, services, infrastructure, energy, environmental protection, health and education. These projects will generate employment and, amongst other things, help to increase the competitiveness of SMEs.The advantageous terms (interest rate, duration) of the EIB’s financing for BGK will result in lower funding costs and improved terms for the final beneficiaries concerned. BGK will channel a substantial portion of the EIB’s financial value added to the final beneficiaries.