Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and Bank Gospodarstwa Krajowego (BGK) entered into a significant agreement under the COSME program, aimed at enhancing access to finance for small and medium-sized enterprises (SMEs) in Poland. The primary challenge faced by Polish SMEs was limited access to financing due to a lack of hard collateral, which often hindered their growth and operational capabilities.
To address this issue, the EIF provided BGK with a counter-guarantee that enabled the bank to support PLN 1,000 million (approximately EUR 250 million) in loans to SMEs over a two-year period. This arrangement allowed BGK to offer loans without requiring hard collateral, thanks to an 80% guarantee from the EIF. The tailored solution was designed to facilitate the launch of a new guarantee product, which would support around 5,000 SMEs, thereby improving their access to financing under favorable conditions.
As a result of this collaboration, BGK was able to enhance its existing guarantee offerings, which had already benefited over 86,000 small and medium enterprises. The agreement not only aimed to stimulate economic growth and competitiveness in Poland but also aligned with the broader objectives of the European Fund for Strategic Investments (EFSI) to boost job creation and investment across the EU. This initiative marked a pivotal step in providing essential financial support to SMEs, enabling them to thrive despite the challenges posed by collateral requirements.