The Polish-Ukrainian Chamber of Commerce in cooperation with the National Economy Bank organized a webinar about Ukraine Facility. It was attended by 124 entrepreneurs, local government officials and advisors from Poland and Ukraine. Karol Tofil, Director of the International Partnership Office at BGK, presented the possibilities of using the second pillar Ukraine Facility.
BGK, as the only Polish institution accredited by the European Commission, will take part in the competition for funds for bank guarantees from the second pillar of the Ukraine Facility. After obtaining them, signing an agreement with the Commission, BGK will probably offer entrepreneurs two methods of financing:
- Direct financing of BGK in the form of a loan denominated in euro (because BGK will receive funds from the European Commission in this currency), with interest based on LIBOR plus BGK margin (lower than in commercial banks). These will be multi-year projects, with a preliminary estimated value of no less than 7-10 million euros. The maximum value of the project has not yet been determined. An own contribution to the project will be required. What? It is too early to talk about percentage rates today, but it will vary depending on the sector.
- Financing for lower-value SME projects in Ukraine will be provided through Ukrainian banks, with which BGK is negotiating the principles of cooperation, i.e. the principles of providing guarantees.
First, however, BGK should submit a tender offer to the European Commission, describing which directions and industries are important for the reconstruction of Ukraine, in line with Ukraine Plan, BGK wants to focus. And that's why PUIG from BGK organized this webinar: you need to get to know the intentions of entrepreneurs and indicate what is realistic.
Who can be in the starting blocks to support BGK and the European Commission? Polish and Ukrainian companies, Polish-Ukrainian consortiums planning investments in Ukraine, in accordance with the Ukraine Plan.
It is worth remembering that these are not grants, but loans - cheaper thanks to financial guarantees from the Ukraine Facility. Therefore, all projects accepted by BGK must be – as experts say – “bankable”, i.e. not only profitable, but also verified in accordance with banking procedures.
In late spring 2025, the signing of the first agreements with BGK, based on support from Pillar II of the Ukraine Facility, can be expected.
Polish-Ukrainian Chamber of Commerce promotes The second pillar of the Ukraine Facility from autumn 2023. The Chamber encourages you to contact us at: new.ukraine.facility@pol-ukr.com
The Polish Investment and Trade Agency was the webinar partner.
