Polish Bank BGK to Implement Community Support Projects in Ukraine

Olha Zykova, Ukraine's Deputy Minister of Finance, conducted a working meeting with a delegation from the Polish development bank BGK, which was headed by Karol Tofił, the Director of the International Partnerships and Analysis Department. This meeting was an important event as the parties discussed plans for the commencement of BGK's full-fledged activities in Ukraine, following the ratification by the Verkhovna Rada and the signing of the agreement by the President of Ukraine in March.

The agreement grants BGK a status similar to that of international financial organizations, opening up new opportunities for extensive operational activities in Ukraine. Olha Zykova emphasized that BGK plays a special role as a financial bridge between Poland and Ukraine, bringing together resources, expertise, and the capabilities of European instruments for the reconstruction of Ukraine. She expressed confidence that cooperation between the two countries would facilitate the swift launch of practical projects, attract investments, and strengthen the long-term Ukrainian-Polish partnership.

During the meeting, participants also explored funding opportunities for the restoration of critical infrastructure in Ukrainian communities, including water and heating supply systems. Options for combining European Union grants with BGK credit lines were discussed, which would help reduce borrowing costs for implementing important projects.

Additionally, the participants discussed approaches to implementing projects under the Ukraine Investment Framework, as well as financial support for local initiatives through Ukrainian state banks with coverage guarantees from the European Commission. This would ensure the effective implementation of joint initiatives and promote the development of Ukrainian-Polish partnership.

Within the framework of the Ukraine Investment Framework (UIF) investment program, two framework projects from BGK have already been approved for implementation in Ukraine. The first project involves attracting guarantees from the European Commission for the private sector, specifically investments in energy, transport, and construction, totaling approximately 200 million euros. The second project pertains to the public sector and aims to support the restoration of community infrastructure with 20 million euros.

The parties agreed to continue practical coordination and experience exchange for the effective implementation of joint initiatives. This will be an important step in strengthening the Ukrainian-Polish partnership, especially in the context of rebuilding Ukraine after the numerous challenges it has faced.

As reported by Ukrinform, on February 26, the Verkhovna Rada of Ukraine ratified the agreement between the governments of Ukraine and Poland regarding the operations of Bank Gospodarstwa Krajowego in Ukraine. Legislative initiative No. 0363 was adopted with the support of 261 votes from deputies. In March, President Volodymyr Zelensky signed the law ratifying this agreement, marking a significant step in the development of cooperation between the two countries.

The initial steps in cooperation with BGK promise to lay the groundwork for further development of economic relations between Ukraine and Poland, which, in turn, could positively impact the recovery of the Ukrainian economy and infrastructure.