Investment & Fund Management

The European Investment Fund (EIF) and Bank Gospodarstwa Krajowego (BGK) have collaborated to address the financing challenges faced by Polish small and medium-sized enterprises (SMEs). The specific issue was the limited access to loans for SMEs, particularly those unable to provide hard collateral, which hindered their growth and operational capabilities. To tackle this, the EIF and BGK doubled their loan provision from PLN 1 billion to PLN 2 billion (approximately €500 million) under the COSME programme, which is designed to support SMEs.

The tailored solution involved the introduction of a new guarantee product that allowed BGK to offer loans with significantly reduced collateral requirements. This initiative was backed by the European Fund for Strategic Investments (EFSI), part of the Juncker Plan, which aims to stimulate investment across Europe. Over the past two years, BGK had already supported more than 3,700 SMEs through COSME guarantees, and the new agreement was expected to extend this support to an additional 10,600 businesses.

Quantifiable results from this initiative include the mobilization of around €7.7 billion in investments in Poland and an anticipated €225 billion across Europe. The program has proven effective, with 96 percent of the companies benefiting from COSME guarantees being micro and small businesses, which are crucial for economic growth. The BGK's guarantee programs have facilitated credit activity exceeding PLN 72 billion over 4.5 years, demonstrating a significant impact on the financing landscape for Polish SMEs.