Small businesses get major banking boost from EU Guarantee Fund

State bank Bank Gospodarstwa Krajowego (BGK) is launching the EU Guarantee Fund (FPU) which will eventually have a capital of zł.800-900 million and is aimed at facilitating absorption of EU funds by enterprises. The fund will serve as additional security on loans to small businesses which often have problems providing suitable collateral. In order to make the fund as accessible as possible companies will be able to apply for a guarantee from FPU directly through the banks from which they are seeking a loan. BGK has already signed agreements with 19 commercial banks. Over the next three years, the fund is expected to collect zł.800-900 million from this source, allowing it to provide guarantees of up to zł.3-4 billion. (Gazeta Wyborcza, p.19) T.J.