PKO Bank Polski and KUKE (abbrev. the official Polish Export Credit Agency – editor’s note) have concluded an agreement on cooperation in the field of payment of insurance guarantees securing up to 80 per cent of a loan granted for execution of domestic investment projects generating export. The guarantor is the State Treasury.
“This solution will contribute to the development of export activities of our clients,” Marcin Eckert, Vice-President of PKO Bank Polski convinces.
This year, KUKE has introduced a system of innovative solutions aimed at strengthening the competitive position of Polish companies in international markets. The cooperation agreement between PKO BP and KUKE is an element of a new system of exporters’ support available to enterprises in only a few European countries.
“The expansion of Polish companies in foreign markets contributes to maintaining the good condition of the Polish economy. That is why PKO BP offers specific products to exporters. I am convinced that this solution will contribute to the development of our clients’ export activities, enabling them to make new investments,” the Deputy President of PKO BP stressed.
For PKO BP, the Export Credit Agency is a partner with which it can share transaction risk, and thanks to the guarantees provided by the State Treasury, the bank does not have to create provisions for its financing.
According to Janusz Władyczak, the President of the Management Board of KUKE, assigning the risk to KUKE allows banks to offer higher limits to clients, who in turn can use the funds to develop their export potential by investing in new equipment, halls or other fixed assets. And additional bank financing, available through KUKE guarantees, can be used for current production and working capital needs.
“Sometimes smaller entities face a lack of adequate loan collateral and cannot take full advantage of market opportunities. In contrast, the needs of larger companies can sometimes exceed the creditworthiness of the financing institution. By providing guarantees for investment loans, we will support Polish entrepreneurs” – Mr Wladyczak noted.
Guarantees for loans for investments located in Poland are offered both to companies that already export and to entities that thanks to investments are just preparing to expand on foreign markets.
The guarantee is available to companies that finance export-generating domestic investments in PKO BP. The guarantee may secure up to 80% of the loan, and the minimum guarantee amount is PLN 4 million.
A customer who wants to obtain a guarantee must meet one of the two conditions: the sum of revenues from export sales in the selected three of the last five years constitutes not less than 20 per cent of the total revenues from sales or the investment generates min. 20 per cent of export earnings within 3 years after its completion.