Government injects PLN 5bn into ARP to help businesses

2009-05-27



At its meeting on 26 May, the government approved state guarantees worth PLN 5bn (approx. €1.1bn) to underwrite loans and other forms of financial support for companies from sectors worst-hit by the economic downturn, to be provided by the Industrial Development Agency (ARP).
The support will be available to medium-sized and large companies which are in a sound financial condition but which are struggling to obtain external financing because of the risk profile of their sectors. It will range from loans through financing of bond issues through buying equity stakes.
The thrust of the plan was welcomed by the business community. The plan is another measure adopted by the government intended to improve access to financing for the business sector, after it injected PLN 3bn (€0.7bn) into BGK, the state-owned bank, to revive lending to businesses.