Poland

Government Measure

Ability to change the terms and conditions or repayment date of credit (loans) granted before 8 March 2020 (but only upon parties mutual consent). Such changes may include extension or modification of the terms of already granted loans, notwithstanding the potential loss of creditworthiness of their existing client and such modification can only be made for the benefit of the borrower. However, the banks retain the right to terminate credit (loan) agreements.

Eligibility

All borrowers which concluded a credit (loan) agreement under Polish Banking Law with a Polish bank before 8 March 2020.

Supervising Authority

KNF (The Polish Financial Supervision Authority). The KNF has recommended potential renewals of financings should not be made for a period longer than one year. KNF has allowed banks to take simplified positive liquidity forecasts into account if they increase the amount of financing to existing customers above the level available on 31 December 2019

Availability

From 1 March 2020

Government Measure

The National Bank of Poland is granting PLN 100b to all businesses in the form of a preferential loan. Loans will be granted for average period of 3 years with some of the funds being non-refundable after fulfilling certain conditions.

Eligibility

All companies registered in Poland are eligible if they fulfil certain conditions, such as decrease in revenues, etc.

Supervising Authority

PFR (Polish Development Fund)

Availability

Available from May 2020.

Government Measure

Possibility for the Bank Gospodarstwa Krajowego (BGK) to grant guarantees to the benefit of the banks financing medium and large businesses.

BGK guarantees up to the maximum amount of 80% of the loan amount.

The maximum amount of a credit facility (principal only) covered by the guarantee is PLN 250m.

Guarantee may be granted for 27 months provided it is no longer that the term of a credit facility plus 3 months.

Guarantee applies for new loans, as well as for renewals of existing overdrafts and revolving credit lines concluded after 1 March 2020.

Eligibility

Medium and large companies¹ that have not been declared bankrupt or in respect of which no restructuring proceedings have been issued, and do not have arrears with respect to payments due to tax offices, social security office, nor to the financing banks. The measure is open to all sectors.

¹ Under the Polish Entrepreneur Law, a medium enterprise is a company that has met all of the following conditions in at least one of the last two financial years: (i) had an average annual employment from 50 and fewer than 250 employees and achieved an annual net turnover from the sales of goods, products, and services and from financial operations more than PLN equivalent of €10m and not exceeding the PLN equivalent of €50m, or the total assets in the company’s balance sheet prepared as at the end of one of those years exceeded the PLN equivalent of €10m and did not exceed €43m.

A large enterprise is defined as a company that has met all of the following conditions in at least one of the last two financial years: (i) had an average annual employment of 250 employees or more and achieved an annual net turnover from the sales of goods, products, and services and from financial operations exceeding PLN equivalent of €50m, or the total assets in the company’s balance sheet prepared as at the end of one of those years exceeded the PLN equivalent of €43m.

Supervising Authority

BGK, however it is granted through a credit institution.

Availability

From April to the end of 2020

Government Measure

Various forms of reimbursable support - among others, loans, guarantees, sureties.

Goal: to ensure financial liquidity for the duration of the state of epidemic threat or state of epidemic; for a period of 12 months following the revocation of this state; until the negative economic effects are resolved.

Amount and type of support varies depending on the actual financial consequences suffered by the business in connection with the declaration of a state of epidemic threat or state of epidemic, as well as the scale of the business activity undertaken.

Prohibition on the use of support granted to repay liabilities to, among others, parent companies and subsidiaries.

Eligibility

Available to all businesses in difficult financial situations as a result of COVID-19.

Not available to companies which have been declared bankrupt or in respect of which restructuring proceedings have been opened, or for which applications to open such proceedings have been filed (more details in the section on restructuring and bankruptcy).

Supervising Authority

ARP(Industrial Development Agency)

Availability

From April 2020 Applications processed without delay - within 14 days

Government Measure

Returnable instruments (e.g. loans, guarantees and sureties) may be granted to eligible companies either for working capital or investment purposes. Support for maximum period of 6 years

Eligibility

Available for all businesses, except for those that have been declared bankrupt or in respect of which restructuring proceedings have been issued), and provided that they do not have arrears with respect to payments due to tax offices, social security office, or to the financing banks

May be granted either for working capital or investment purposes

Supervising Authority

Each entity implementing the financial instrument (loan, guarantee or surety) financed from EU funds such as Bank Gospodarstwa Krajowego (BGK), National Fund for Environment Protection, or Polish Agency for Enterprise Development.

Availability

Until the end of 2020