German bank supports Polish SME sector with a BGK €100 million loan

German bank KfW and Polish state development bank BGK finalized a EUR 100 million global loan agreement to support and encourage the Polish small and medium-sized enterprises (SME )sector.

The loan has a term of around ten years . The funds are going to be used to finance long-term investment loans for SME companies  in Poland . As one of the most essential providers for investment in capital goods, Germany  is the largest country in Central Europe, so it also stands to benefit indirectly from an enhanced investment climate in Poland.

The commitment of the global loan to BGK remains in line with KfW's more need to have a more effective involvement in Europe and particularly focus on its near Central European neighbours. KfW and BGK collaborate within several European associations and networks, including the Network of European Financial Institutions for Small and Medium-Sized Enterprises (NEFI) and the European Long-Term Investors Association (ELTI).

KfW's CEO Dr Ulrich Schröder on this partnership stated : "This first global loan to support Poland's SME sector is an expression of the strong partnership between KfW and BGK as key European promotional banks . By issuing the loan, KfW is supporting BGK's long-term funding and helping improve the financing conditions for SMEs in a country that is an important neighbor and partner for Germany. At the same time, KfW is reinforcing its strong and long-standing collaboration with BGK in the NEFI and ELTI. We intend to further intensify our bilateral cooperation, and stay in constant contact to achieve this.“

“KfW’s global loan for the funding of the SME sector is in line with our objective to support economic and social development of the country. The extra EUR 100 million will have a positive effect on keeping up with the speed of SMEs’ investments. These financial means are going to complement our existing offer for SMEs - guarantees de minimis , funding available under the JEREMIE programme or loans for setting up a business activity. We are pleased that the cooperation with European partners helps us to even better fulfil our mission as a development bank”, said Dariusz Kacprzyk, the President of the Management Board of BGK
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