BGK

Financing of Polish social enterprises
from the ESF - pilot project
Marek Szczepański
Managing Director
Bank Gospodarstwa Krajowego
Prague, 9 Nov. 2011
2011-11-09
Scope of presentation
• Basic information about BGK
• Our experiences in the EU co-financed programmes
• Pilot project
- conditions of the loans
- the institutional system
- next steps and main challenges
Scope of presentation
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2011-11-09
Bank Gospodarstwa Krajowego (BGK)
• State-owned bank – the only one
in Poland, the largest one in Central
and Eastern Europe
• Established in 1924
• Supervised by the Ministry of Finance
• Mission including supporting
programmes for local and regional
development
• Leader in local governments financing
• Key clients: central administration
and self-governments
Bank Gospodarstwa Krajowego
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2011-11-09
Our experiences in the EU co-financed programmes (1)
JEREMIE: an innovative instrument to support SMEs, special focus on start ups, new
technologies, innovation, technology of transfer to SMEs etc., repayable financial
instruments instead of grants with leverage effect attracting other source of finance,
including private funds
Aim: to eliminate uncovered market deficiencies by provision of debt, equity, guarantees to finance SMEs
expansion or new business creation.
Tools: counter-guarantee, global loan, portfolio guarantee, capital instruments
Funds managed by BGK: ca. 1,66 billion PLN (EUR 415 million).
Implementation scheme: repayable financial instruments granted via financial intermediaries with joint risksharing
Programme overview:
• First tender for financial intermediaries: April 2010
• Tenders advertised so far: 27
• BGK operates as Holding Fund in 5 regions: Pomorskie, Zachodniopomorskie, Wielkopolskie, Łódzkie
• and Dolnośląskie
• Number of enterprises supported so far: approximately 2300 SMEs
• Resources disbursed so far: EUR 44,6 million
JEREMIE (Joint European Resources for Micro-to-Medium Enterprises)
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2011-11-09
Our experiences in the EU co-financed programmes (2)
JESSICA: support for sustainable urban development and regeneration through
financial engineering mechanisms
Aim: urban development and revitalisation of disadvanteged areas in cities
Tools: preferential loans, guarantees, equity
Allocated funds managed by BGK: ca. 450 million PLN (EUR 112.5 million).
Implementation scheme: repayable financial instruments are granted via financial intermediaries –
Urban Development Funds (UDFs)
Programme overview:
• JESSICA is present in 5 Polish regions: Wielkopolskie, Zachodniopomorskie, Pomorskie, Śląskie and
Mazowieckie.
• BGK operates as an UDF in 2 regions: Wielkopolskie and Pomorskie (recently)
• First applications submitted: late December 2010
• Investors: private enterprises, NGOs, municipal companies, local self-governments, public-private
partnerships and others.
JESSICA (Joint European Support for Sustainable Investment in City Areas)
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2011-11-09
Our experiences in the EU co-financed programmes (3)
Technology Credit Fund: a support for new technology investments in form
of a technological credit; part of the credit can be paid back by the Fund
in form of a technological bonus
Aim: a financial support for implementation of a new technology, which has been
used no longer that 5 years or opening a totally new production related to a new
technology
Implementation scheme: credits given by banks collaborating with the BGK
Allocated funds 2007-2013: EUR 336 million
Technology Credit Fund
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2011-11-09
The pilot project on the social enterprises financing
Aim: creating new capabilities for SEs’ investments in their economical activity.
Beneficiaries (SEs):
• NGOs conducting trade activity,
• Social cooperatives,
• Religious organizations,
• Public companies and companies with limited liability – running non profit, transferring
whole incomes onto statutory goals.
Budget: 30 million PLN (ca. EUR 7,5 million) from the ESF in frames of the Human
Capital Operational Programme
TOOLS: repayable loans
Administrative range: a territory of Poland will be shared into 5 macro-regions
The pilot project on the social enterprises financing
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The repayable loans
The loan term: loans will be given for a term of 60 months with a grace of period repayment of
a capital for maximum 6 months.
Conditions of the loan: the maximal amount: 100 thousand PLN (ca. EUR 25 thousand).
The interest was calculated for 0,5 % of the discount rate (currently 2%).
State aid - the de minimis rules
Additional consulting services for social enterprises:
- services before the repayable loan is given
- services after the repayable loan is given – operated by the financial intermediaries.
The pilot project – the repayable loans
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2011-11-09
Institutional system of implementation
of the pilot project
The Ministry of the Regional Development – Managing Institution of the Human Capital
Operational Programme
The Ministry of Labour and the Social Policy – Intermediary Institution
The Steering Committee
Bank Gospodarstwa Krajowego – the „system beneficiary”, acting as a holding fund
Financial Intermediaries – chosen by tenders arranged by the BGK in a way approved by the SC
Social Enterprises – final beneficiaries of the Programme
The pilot project – institutional system of implementation
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2011-11-09
Next steps
December 2011/January 2012 – establishing the Steering Committee
December 2011/January 2012 – changes in the Detailed Priorities Description
of the Human Capital Operational Programme
1st Quarter of the 2012 –
signing the agreement between the Ministry of Labour
and the Social Policy and the BGK
2nd Quarter of the 2012 –
tender organized by the BGK
3rd Quarter of the 2012 –
agreements among the BGK and Financial Intermediaries
4th Quarter of the 2012 –
full operational readiness of the project
Main challenges – Polish and the EU Law …..
The pilot project – next steps
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2011-11-09
Thank you for your attention
Marek Szczepański
Managing Director
Bank Gospodarstwa Krajowego
e-mail: [email protected]
www: www.bgk.com.pl
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