Extension of Polish COVID loans programme
Extension of COVID Loans Programme in Poland (Financial Shield)
Polish Council of Ministers adopted a resolution according to which large companies have a chance to obtain a Preferential Loan of the government programme „Financial Shield of the Polish Development Fund for large companies” until 31 March 2022, with the possibility of disbursement of funds under the preferential financing instrument until 30 June 2022. The shield itself is to be in force until December 2022
COVID Loans in Poland
According to Polish Covid Laws, entrepreneurs in Poland have the opportunity to benefit from financial support in the form of liquidity financing, preferential financing and investment financing under market conditions and on the basis of public aid rules under the government support programme ‘Financial Shield of the Polish Development Fund for Large Companies’. The government in Warsaw estimated the funds provided for this programme at PLN 25 billion. The solutions provided for in the shield such as the Preferential Loan were intended to prevent the bankruptcy of Polish enterprises and an increase in unemployment. It should be mentioned that the Preferential Loan 2.0 is a financial support that is public aid and may be redeemed in the maximum amount of up to 75% of its nominal value. Obtaining such a loan therefore means a very attractive financial injection for large companies during the crisis caused by successive waves of the COVID-19 pandemic and possible difficulties in running a business.
COVID Loans availability extension
The current programme provided for the conclusion of COVID liquidity loan agreements and preferential (soft) loan agreements until 30 September 2021 with the possibility of disbursement until 31 December 2021.
As can be seen from the list of legislative and programme works of the Council of Ministers, this programme has been met with great interest, as evidenced by the number of applications submitted by 30 September 2021. With this in mind, the Council of Ministers decided to modify the aid law by extending the term of operation of the Programme until 31 December 2022 and extending the possibility of granting aid in the form of preferential financing 2.0 under the Programme until 31 March 2022, with the possibility of disbursement under the preferential financing instrument until 30 June 2022.
75% of COVID loans moratorium
The moratorium rule will be maintained, as a result each COVID Loan be redeemed / canceled to the maximum amount of up to 75% of its nominal value