Bank Gospodarstwa Krajowego (BGK)
Bank Gospodarstwa Krajowego is a state development bank whose mission is to support the social and economic development of Poland and the public sector in the fulfilment of its tasks.
The Bank is a financial partner actively supporting the entrepreneurship and making effective use of development programmes. It is the initiator of and the participant in cooperation between business, public sector, and financial institutions.
Together with other development institutions, the Bank plays a significant role in implementation of the Strategy for Responsible Development, adopted by the Council of Ministers on 14 February 2017, which is the key document of the Polish state in the medium- and long-term economic policy.
BGK has a wonderful history of great achievements for Poland, which the Bank regards as an inspiration for its activities, but it looks to the future, because the effects of today’s work will be visible there. Every day, the Bank works for the future of Poland and the generations to come.
The history of BGK dates back to 1924 when the President of the Republic of Poland, at the initiative of then Prime Minister and Treasury Minister Wladyslaw Grabski, issued a decree establishing BGK. It was created by a merger of three public banks from the Galicia region - the Polish National Bank, the State Reconstruction Bank and the Credit Institution of Malopolska Cities.
The creation of BGK was a result of PM Grabski's economic concepts. Despite being opposed to statism in industry and trade, Grabski was at the same time a supporter of strong state banking. The Bank's main tasks included granting long-term loans through issuance of covered, municipal, railway and bank bonds and offering local government loans as well as providing loans to savings institutions and performing all other banking tasks. The Bank had special obligations towards state-owned and local government companies. Securities issued by BGK were guaranteed by the State Treasury.
After 1926, BGK activities focused on supporting state and municipal institutions, the defense industry and management of industrial plants brought under state control. In that period, the so-called BGK conglomerate was created which included the Association of Starachowice Mining and Smelting Plants, Grodzisk Chemical Plant, Boruta Chemical Industry, The Association of Potassium Salt Mining and a number of other plants.
The Bank also administered the government's special purpose funds, including the Credit Institution Support Fund, State Construction Fund, State Credit Fund and Labour Fund.
At the turn of the 1920s and 1930s, BGK became one of the biggest banks of inter-war Poland and served as the primary participant in the economic restructuring process.
Between 1928 and 1931, a BGK building designed by Rudolf Swierczynski was constructed in Warsaw's Aleje Jerozolimskie street.
After World War II, BGK was reactivated with renowned economist Professor Edward Lipski at its helm. As a result of a banking reform, BGK operation was suspended from 1948.
In 1989, BGK resumed it operation as a state-owned bank and as such acted primarily as issue agent for Treasury bonds, offered for the first time in several decades. The Bank's activities focused on the preparation of sub-agent deals for the sale and redemption of bonds, development of accounting and reporting rules and organizing a nationwide sales network.
In December 1997, BGK returned to its pre-war headquarters in Aleje Jerozolimskie in Warsaw. It was a symbolic return to its roots but also a return to the Bank's best traditions.
Today, the government tasks the Bank with the operation of a number of special purpose funds and programmes (including the National Road Fund, National Housing Fund, Thermomodernisation and Renovation Fund and the Railway Fund).
Currently, BGK actively participates in the implementation of the state's economic objectives. During the economic slowdown, it provides funding for infrastructure investments and thus supports growth of this sector of the economy. It is an important link in the provision of funding and support for areas that are important for the society, such as housing infrastructure, energy efficiency and public utilities. It supports Polish exporters by taking on part of the risk related to trading activities of Polish companies. In collaboration with other financial institutions, BGK improves access to funding for businesses, which translates into lower unemployment and stronger GDP growth.
BGK manages several special purpose funds and a number of governmental programmes. Its mission is to support social and economic growth of Poland and the public finance sector in the performance of its tasks.
BGK cooperates with a network of international partners, including three main groups: international financial insitutions, foreign public banks (BGK’s counterparties in thirds countries) and associations of this type of entities.
Cooperation with international financial institutions
European Investment Bank (EIB) remains BGK’s main international partner in terms of funding. From EIB’s sources BGK funds both own activity and government funds managed by BGK on behalf of the state. Cooperation with the EIB covers also JESSICA Initiative (Joint Initiative of European Commission and EIB for revitalization of urban areas), where EIB plays a role of a holding funds and BGK of Urban Development Fund (UDF).
Since 1 July 2013 BGK is a shareholder of European Investment Fund (member of EIB Group responsible for supporting of the SME sector). BGK is the sole Polish shareholder of the EIF. In the framework of this cooperation in 2013 EIF and BGK created a joint Polish Growth Fund of Funds of the initial size of EUR 90 million investing in enterprises in growth and expansion phases. In 2015 BGK and EIF signed also a counter-guarantee agreement in the framework of COSME, an European programme supporting competitiveness among SMEs
BGK does cooperate also with other international financial institutions, such as:
- Council of Europe Development Bank,
- Nordic Investment Bank,
- World Bank.
International associations and networks
BGK is a member of several international association, among them:
- European Association of Public Banks (EAPB)
- European Association of Long-Term Investors (ELTI).
- European Association of Guarantee Institutions (AECM)
- Long-Term Investors Club (LTIC)
- Network of European Financial Institutions for SMEs (NEFI)
- International Project Finance Association (IPFA)
Bilateral Relations with National Promotional Banks and Institutions
Participation in works and meetings of international association creates an opportunity for BGK employees to get to know better other European financial institutions. Thanks to these meeting BGK builds its knowledge base about products and business models of public banks from other countries.
Such information may be used in the development of new strategic objectives for the Bank and developing new products.
Development of bilateral relations with foreign national promotional banks translates into organisation of mutual study visits, during which BGK can learn from its partners, as well as share its own experiences in different areas.
Government target funds
The offer of funds created to finance tasks owned by public bodies.
Loans from the European Investment Bank (EIB) credit line for the financing of the regional development.
Loans from the EIB credit line are granted on preferential terms under two formulas: Global Loan and Loan for SMEs. Loans under Global loan are assigned particularly to local and regional governments: municipalities, counties and voivodships as well as their associations for the co-financing projects supporting local and regional development, particularly within the following areas of activity:
- Development of a Knowledge-Based Economy
The improvement of Economic and Social Cohesion in Convergence Regions
The loan from EIB line may cover up to 50 % of the project costs (50% of the total financing granted by BGK as to Loan for SMEs). In case of projects supported by the EU funds, EIB loan, EU funds and EC grants together can finance up to 90% of total project cost (100% as to Loan for SMEs). The minimum project cost should be over the equivalent of EUR 40,000, not exceeding EUR 25 mln. The loan is granted in Polish zloty for the period of time between 4 and 15 years (2 and 10 years as to Loans for SMEs), and the possible maximum grace period shall not exceed 5 years (3 years as to Loans for SMEs).
Loans from the European Investment Bank (EIB) with the European Commission grants
The European Commission established two granting programmes: Municipal Finance Facility (MFF) and Municipal Infrastructure Facility (MIF). The BGK has been participating in these programmes since 2006.
Loans from the European Investment Bank with the European Commission grants can be granted by BGK to finance small scale projects undertaken by municipalities and counties. The investments shall have the maximum value of EUR 5 m, and be co-financed with the use of EIB funds with a minimum loan maturity of 4 years.
MIF Programme is particularly designed for local governments from the following voivodships: zachodniopomorskie, lubuskie and dolnośląskie and partly consists in lowering the granted EIB credit amount by awarded MIF grant.
Student Loan and Credit Fund
Pursuant to the Act of 17 July 1998 on Student Loans and Credits (Polish Journal of Laws No. 108, item 685) the Student Loan and Credit Fund was established at Bank Gospodarstwa Krajowego (BGK). Means of the Fund are intended to provide student loan interest subsidies and redeem a part or the whole of student loans. BGK does not grant loans. Loans and credits can be applied for in one of the four commercial banks which signed a cooperation agreement with BGK.
The Municipal Investments Development Fund
Preferential credits granted from The Municipal Investments Development Fund have a purpose of enabling the municipalities and their unions to finance costs of municipal investment project preparation, assigned for co-financing from the European Union Funds. Municipalities applying for credits from MIDF can benefit from an exceptional public orders procedure independently, without the necessity to carry out a tender among other banks.
The credit is assigned to prepare municipal investment projects targeted to be co-financed from the European Union funds. Such projects cover a study of investment feasibility, cost analysis and benefits as well as the remaining project documentation, analysis, expertise and studies necessary for the preparation of investment realization. The credit amount cannot exceed PLN 550,000 for one project, as well as 80% of net planned costs.
The Railway Fund
The Railway Fund, established in Bank Gospodarstwa Krajowego pursuant to the Act on the Railway Fund dated December 16, 2005, has been operated within the structures of the Bank since 2006. The Fund is financed from the inflows at 20% of the income from fuel fee imposed on motor fuels and gas introduced to the market, used in combustion engines, paid by the producers and importers of motor fuels (increased additionally by the amount of PLN 100m a year, which will be allocated to the Fund until 2015).
The objectives of the Fund include:
- financing tasks consisting in preparing and delivery of construction and reconstruction of railway lines;
- financing projects of refurbishing and maintenance of railway lines and liquidation of redundant railway lines;
- financing the on-going expenses of PKP Polskie Linie Kolejowe S.A. related to managing railway infrastructure;
- in years 2009 - 2015 financing or co-financing the projects of local governments with regard to purchasing, modernisation and repairing railway vehicles for passenger transportation under the contract for providing public services;
- in years 2010 - 2014 financing the acquisition from PKP SA, by the State Treasury, of the shares in PKP Polskie Linie Kolejowe S.A.
The Fund's expenses for the above goals are driven by the government Programme for utilisation of the funds under the Railway Fund, adopted annually by the Council of Ministers.
Payments from the Fund are effected based on the requests issued to the Bank by the minister competent for transportation with accordance to the financial plan of the Fund, which in terms of spending is prepared in line with the government Programme.
The beneficiaries of the resources of the Fund include:
- entities managing the railway infrastructure who entered into agreements with the minister competent for transportation for the delivery of tasks related to refurbishing and maintenance of railway infrastructure, railway projects and liquidation of redundant railway lines;
- local governments - financing or co-financing the projects with regard to purchasing, modernisation and repairing railway vehicles for passenger transportation under the contract for providing public services;
- PKP S.A. in relation to purchase from PKP SA, by the State Treasury, of the shares in PKP Polskie Linie Kolejowe S.A.;
- PKP Polskie Linie Kolejowe S.A. in relation to financing the on-going expenses of PKP Polskie Linie Kolejowe S.A. related to managing railway infrastructure.
The National Housing Fund
The National Housing Fund was closed on the 31st May 2009.
The National Road Fund
The National Road Fund, established in Bank Gospodarstwa Krajowego pursuant to the Act on toll roads and the National Road Fund dated October 27, 1994, has been operated within the structures of the Bank since 2004. NRF was created to facilitate the investment process of constructing roads and improving the efficiency of utilising public funds by supporting the delivery of the government programme of constructing roads. The National Road Fund is currently the major source of financing construction of roads in Poland. The main source of funding the NRF are the inflows at 80% of the income from fuel fee imposed on motor fuels and gas introduced to the market, used in combustion engines, paid by the producers and importers of motor fuels (reduced by the amount of PLN 100m a year until 2015, allocated to the Railway Fund).
Other sources of funding NRF include:
- funds from loans incurred by Bank Gospodarstwa Krajowego and from bonds issued by BGK for NRF;
- refunds from the EU budget (as part of the programmes co-financed from the EU funds for road infrastructure);
- inflows from electronically charged tolls on motorways managed by Generalna Dyrekcja Dróg Krajowych i Autostrad (GDDKiA), on express roads and selected national roads by a motorvehicles or a combination of vehicles with maximum permissible weight of over 3.5 tonnes (viaTOLL electronic toll collection system);
- inflows from tolls charged for using motorways managed by GDDKiA by a motorvehicles or a combination of vehicles with maximum permissible weight ≤ 3.5 tonnes (manual toll collection system);
- payments made by companies, in line with the terms of agreements for construction and operation, or operation only, of toll motorways, including revenue from tolls charged by the company.
The main objective of the Fund is to collect funds for construction and reconstruction of national roads. Additionally, the Fund's resources are allocated to:
- financing construction and reconstruction of road structures and ferry facilities and purchasing devices for weighing vehicles;
- financing the needs related to collection of data on public roads and preparing information on the public road network, improvement of traffic safety;
- financing construction and operation of toll collection systems (electronic and manual toll collection system);
- payments to companies in relation to their delivery of obligations under the agreement for construction and operation, or operation only, of toll motorways, including remuneration for availability of the motorway;
- financing the costs of consultancy services related to construction and reconstruction of national roads;
- financing the costs of creating an SPV and financing the road-related projects undertaken by the SPV;
- servicing debt incurred by BGK for the Fund (repayment of loans including interest and other costs and covering the costs of issues, interest and redemption of bonds issued by BGK for the Fund);
- repayment by GDDKiA - pursuant to the act on repayment of selected unsatisfied receivables of businesses, resulting from delivery of public contracts granted dated June 28, 2012 - unsatisfied receivables of businesses for works delivered and accepted, which were delivered under contracts with the contractor.
The basis for using NRF funds is the annual financial plan of the Fund, prepared by BGK and agreed by the minister competent for transportation and minister competent for public finance, with recommendation from minister competent for regional development in relation to the funds allocated for the delivery of the investment under operating programmes co-financed by the European Union. Payments from the Fund for road projects are effected based on requests issued by GDDKiA to Bank Gospodarstwa Krajowego.
The Subsidy Fund
The following programmes are financed from the Subsidy Funds:
- the subsidy programme for preferential credits interest - on the basis of the act about financing the support of families in purchasing their own flat.
- the financial support programme for creating social housing premises, sheltered housing premises, dosshouses, and houses for the homeless, on the basis of the act on the financial support for creating social housing premises, sheltered housing, dosshouses and houses for the homeless.
In 2007 the financial pilot programme was finished for supporting municipalities in creating social housing resources. The pilot support programme for municipalities was replaced, in creating social housing resources, in 2007 by a new government financial support programme for creating social housing premises, sheltered housing and housing for the homeless. In 2007 the Bank accepted, reviewed and qualified applications submitted by municipalities and non-governmental organizations in spring and autumn edition. As a consequence of the estimation carried out, 192 applications for a total amount of PLN 69.4 mln for financial support, 169 were classified for an amount of PLN 56.5 mln. On the basis of reached agreements, over PLN 1.7 mln were paid out as the financial support to the end of 2007.
Technology Credit Fund
The Technology Credit Fund will be created as the state target fund in a form of a bank account, from which technological bonuses will be paid out. The authorized disposer will be the appropriate sector minister for economy, whereas the bank servicing will be conducted by BGK.
The Fund's means will be composed of subsidies from the state budget in the amount defined in the budget act, interest from Fund means deposits in banks, receipts from Fund means investments in securities issued by the State Treasury or investment units on the monetary market, a well as other receipts.
As of January 1st, 2009 the principles of granting technological credit will change. It will be granted by commercial banks from their own means, whereas BGK will pay off a part of an incurred credit in a form of technological bonus from the Technology Credit Fund.
Technological credit will be granted to micro, small and meduim-sized enterprises by these commercial banks, which will sign a co-operation agreement with BGK. It will be possible to use the Fund's means merely for technological bonuses. BGK will only decide about a partial repayment of credits, by granting a thermomodernization bonus.
The thermomodernization bonus is a form of state help for an investor who carries out thermomodernization enterprise. It is paid out by Bank Gospodarstwa Krajowego at 25% of the loan used for such an enterprise. An investor who carries out a thermomodernization enterprise only pays off 75% of the amount used for the loan. The thermomodaernization bonus only partakes to investors who benefit from a loan granted by banks co-operating with BGK, it cannot be used by enterprises that carry out thermomodernization enterprise with their own funds. The clients can be council, housing co-operatives, commercial law partnerships, housing associations, as well as natural persons, detached family house owners.
In line with the Regulation of the Council of Ministers on loans from the state budget drawn for the purpose of pre-financing within the Rural Areas Development Programme (Journal of Laws No 156, item 968 of 2008), Bank Gospodarstwa Krajowego shall grant the aforementioned loans to beneficiaries of RDP 2007-2013, within the framework of :
Axis 3, "Diversification of rural economy and quality of life in rural areas" for the following activities:
- Provision of basic services to rural economy and population,
- Revival and development of rural areas.
Axis 4, "Leader," for the following activities:
- Implementation of local development strategies,
- Implementation of cooperation projects,
- Functioning of local action groups.
1. Depending on the nature of the activity, the Borrower may be exclusively a local government unit (LGU) or a local action group (LAG).
2. The loan shall be granted for the purpose of implementing operations as part of the following activities covered by RDP:
1) in the case of LGU:
a) revival and development of rural areas,
b) provision of basic services to rural economy and population,
c) implementation of local development strategies,
2) in the case of LAG:
a) implementation of cooperation projects,
b) functioning of local action groups.
3. The amount of the loan granted cannot exceed the amount of funds obtained from EAFRD, awarded to the Borrower as a part of financial assistance.
4. BGK shall charge commission for to the loan granted, in the amount of 0.1% of the loan. The Borrower shall pay the commission on the release date of the first tranche of the loan by BGK.
5. Submission of the loan application to BGK shall be possible upon the evaluation of the application for assistance by a competent authority of the voivodeship government.
6. The beneficiary of the assistance interested in obtaining the loan shall be obligated to submit a loan application to a BGK Branch, including in particular:
1) the applicant's name, registered office and address,
2) the amount of the loan applied for,
3) the name of the operation implemented using EAFRD funds - with an indication of the applicable RDP activity.
7. Together with the loan application, the LGU applying for the loan shall submit the following documents:
1) a list of operations, approved by a competent authority of the voivodeship government,
2) documents required by BGK's regulations, necessary to open an account.
8. Together with the loan application, the LAG applying for the loan shall submit the following documents:
1) a positive opinion on granting assistance issued by a competent authority of the voivodeship government,
2) documents required by BGK's regulations, necessary to open an account.
9. Where the loan application is incomplete or contains irregularities, the BGK Branch shall demand that the applicant supplements the required data within a period of no more than 14 business days.
10. The loan agreement shall be concluded with the Borrower within a period of 30 days from the date of submission of a complete application to the BGK Branch.
11. BGK shall accept the Borrower's own blank promissory note, submitted together with a promissory note declaration, as a collateral securing the loan repayment prior to signing the loan agreement.
12. BGK Branches shall open the following bank accounts for the Borrower, which will be used exclusively for the purpose of handling the loan:
1) the loan account - used by the Bank to transfer individual tranches of the loan and by the Paying Agency to transfer funds for the refund of eligible expenses incurred by the Borrower, simultaneously constituting the payment of the utilised loan,
2) own funds account - used for collecting the Borrower's own funds to cover the liabilities under the loan agreement.
13. In order to release the first tranche of the loan, the Borrower shall be obligated to supply the BGK Branch with the following:
1) the assistance agreement (for the purpose of making a copy for BGK),
2) tranche transfer schedule,
3) agreements with contractors of works and suppliers of goods and services, including the contractors' bank account numbers (for the purpose of making a copy),
additionally, the Borrower is obligated to:
4) provide funds for the payment of the commission for the loan to the own funds account,
5) transfer funds ensuring the payment of invoices submitted to the Bank's Branch to the own funds account - in the part payable from the Borrower's own funds, respecting the proportions between the amount of the Borrower's own funds and the amount of the assistance granted, as defined in the assistance agreement.
14. Prior to the release of subsequent tranches of the loan, the Borrower shall be obligated to provide the own funds account with funds sufficient to:
1) repay the interest accrued on the utilised but not repaid amount of the loan on the interest maturity date,
2) pay fees and commissions due to the Bank and resulting from the maintenance of own funds account,
3) pay the invoices submitted to the Bank's Branch, in the part payable from the Borrower's own funds, respecting the proportions defined in the assistance agreement.
15. The release of the loan shall be effected through the payment of invoices or other documents of equivalent probative value issued by the suppliers of services, submitted to the BGK Branch by the Borrower. The Borrower shall, together with the invoices/other documents, submit relevant instructions of transfer of funds from the own funds account.
16. Payments resulting from invoices and other documents of equivalent probative value shall be made according to the current schedule and respecting the proportions between the amount of the Borrower's own funds and the amount of the assistance granted, as defined in the assistance agreement. The Borrower's own funds shall be disbursed in the first place.
17. Payments specified in point 16 shall be performed in the form of two transfers, i.e.:
- a transfer of the Borrower's own funds (from the own funds account)
- a transfer of the loan funds (from the loan account),
to the benefit of contractors/suppliers, in accordance with the numbers specified in the agreements between the Borrower and the contractors/suppliers.
18. The utilised amount of the loan shall be repaid from the funds granted by the Agency for Restructuring and Modernisation of Agriculture (the Paying Agency).
19. The Paying Agency shall transfer the refund of eligible expenses incurred by the Borrower as a result of the implemented operation, directly to the loan account maintained by BGK for the Borrower.
20. The Borrower is obliged to provide the Paying Agency in advance and in due time with information on the loan account number for the purpose of transferring funds for the refund of eligible expenses incurred by the Borrower.
Acceptance of loan applications by BGK for the purpose of anticipatory financing within the RDP will be possible upon obtaining the accreditation from the Agency for Restructuring and Modernisation of Agriculture.
BGK - zlecenia
From January 2010, Bank Gospodarstwa Krajowego has been responsible for the payment of the majority of EU funds granted to Poland.
Pursuant to the Public Finance Act of 27 August 2009, from 1 January 2010 payments to beneficiaries are made from the account of the Minister of Finance opened with BGK which functions as the so-called Paying Authority.
Payments are made on the basis of instructions sent electronically to the Bank either by institutions which have concluded agreements with beneficiaries or, in certain cases, directly by authorised beneficiaries (state budget units). All in all, more than 350 budgetary institutions are entitled to submit payment orders. Bank Gospodarstwa Krajowego has made payments for more than 60,000 beneficiaries. The communication web portal "BGK - ZLECENIA" ("BGK - INSTRUCTIONS") is an IT tool used for the fast and safe creation and transfer of payment instructions.
Measures ordered by the government to support the development of Polish enterprises and economy.
Investments for Polish
The purpose of the programme announced by Prime Minister Donald Tusk on 12 October 2012 is to maintain the polish economy the current growth rate of investment in infrastructure projects to be carried out over a longer period, while fully using the long-term finance and capital commitment. The programme will focus on creating the conditions for long-term financing of investment projects in the area of power (distribution and generation) and gas (transmission network, development and storage) infrastructure, development of hydrocarbon deposits (including shale gas), transport infrastructure, municipal infrastructure (waste disposal, public transport), as well as industrial and telecommunication infrastructure. The programme has been earmarked for growth generating projects, based on long-term financing of investment with significance to the national economy and to the State's strategic interests. The programme provides for no preferential terms of finance for entrepreneurs. Projects should be financed on market terms.
The programme execution is based on two pillars that provide financing for investment projects - Bank Gospodarstwa Krajowego and Polski Fundusz Rozwoju S.A. (PFR). As a target, both these Institutions should be recapitalised with up to PLN 10 billion worth of shares in state-owned companies. For example, capital injections of Polskie Inwestycje Rozwojowe S.A. will make it possible to invest in special purpose vehicles responsible of infrastructure projects. Capital injections of BGK, on the other hand, will allow for an increase in the volume of new loans and guarantees as needed for long-term financing of those projects. The projected outcome of capital injections of BGK is to leverage ca. PLN 40 billion in the first couple of years of the Programme. Funds for increasing the capital of the two above mentioned entities constituting the pillars of the programme will come from the sale stakes of shares in PGE S.A., PKO BP S.A., PZU S.A. and Ciech S.A., which will be successive contribute to both entities, the contribution of which was approved last December by the Council of Ministers.
The key activity intended to increase BGK's capital potential was the January 2013 sale of BGK-held shares in PKO BP S.A. The successful outcome of the transaction resulted in increasing BGK's core capital from ca. PLN 1.9 billion to ca. PLN 6 billion, which makes it possible to increase the limit of BGK's potential financial commitment to a single entity or to a group of entities from ca. PLN 0.47 billion to ca. PLN 1.5 billion.
BGK's role will be mainly that of an entity offering complementary services at arm's length to other commercial entities (providing "last zloty" necessary to finance a project). Bank Gospodarstwa Krajowego has already taken intensive measures aimed at commencing investment finance processes as part of the programme.
Financial support programme for creating social housing premises, sheltered housing, dosshouses and homes for the homeless.
The support is offered to municipalities, municipality unions, regions, non-governmental organizations i.e. to entities, whose, statutory or statute tasks are to provide shelter or flats for the most impoverished ones. The support amount ranges from 20 to 40 % of the total enterprise costs. Subject to an enterprise, the realization deadline cannot be longer than 12, 18 or 24 months. The support is non-refundable in case of maintaining social character of the resource for 10 years.
The support can be designed to construct a building on a real estate property owned by the investor or a property that constitutes their perpetual usufruct.
The subsidy programme for bank loan interest, which were granted for removing consequences of floods, landslides and hurricanes
Bank Gospodarstwa Krajowego applied subsidies from budget means for calculation of interest on loans granted to natural persons and legal persons for removing the following consequences:
- floods which have occurred since 1997
- land slides that have occurred since 2000
- Hurricanes that have occurred since 2001.
Loans are granted by the bank branches that co-operate with Bank Gospodarstwa Krajowego, a swell as BGK branches.
Loans with interest subsidies are designed for: housing property owners and supervisors, residential buildings, as well as technical infrastructure premises that accompany residential housing.
The bank loan is granted for 10 years with a possibility of a grace period in paying off capital up to 24 months. The loan amount varies subject to its purpose, as well as renovation and reconstruction costs.
Loan interest is 2% on a yearly basis. The difference between interest paid by a debtor, and interest calculated according to interest fixed by the crediting bank is covered by BGK from the budget means.
The Bug River Area Act
Bank Gospodarstwa Krajowego makes monetary benefits payments to entitled individuals; namely the so-called Bug river area residents from the means of The Compensation Fund. Compensations are paid out in a form of a bank transfer, or in cash in the tellers of the Bank.
The compensation payment is possible exclusively on the basis of the authorized individuals register prepared by the voivodship offices. The authorized individuals are obliged to reveal, in the appropriate voivodship office, their chosen form of the realization of the right to compensation, and to quote the number of the bank account in a case of choosing a bank transfer as a method of compensation payment.
Each entitled individual, who chooses the monetary benefit as a form to realize their right to compensation will be placed in the central register of entitled individuals. They will be informed by letter from the bank about the form and deadline of the benefit payment.
The State Treasury loan for financing restructuring programmes of the public medical centres
By virtue of the act of May 21st, 2005, referring to public help and restructuring of public medical centres, BGK was authorized to service loans. Applications to grant them are accepted by bank branches in the timeframes of one month from the date of a decision issue to start the restructuring proceedings. The loan is granted to an amount indicated in the act. In order to obtain it, all the following four conditions must be met: receipt of a decision to start the restructuring proceedings, possession of a restructuring programme positively evaluated by the local government authorities, establishing a security tool in favour of the state treasury, as well as submitting a written declaration about the average salary in the period between 2001 and 2002.
Bank Gospodarstwa Krajowego offers its Clients a modern Internet Customer Service system - BGK@24BIZNES, created specially for entrepreneurs, institutions and offices holding accounts with the Bank.
The fact that BGK@24BIZNES allows Clients to reach the Bank via the internet whenever and wherever they choose significantly facilitates company management. Particularly worth stressing are the low cost of using the system and the simplicity of quickly obtaining all necessary information from the Bank.
By using modern and reliable security features (login, keys, Secure Socket Layer encryption), BGK@24BIZNES allows efficient management of any company's financial operations.
Apart from carrying out activities commissioned by the state, BGK is engaged in institutional banking activities. In addition, BGK offers term deposits to individual customers.
The offer for companies covers bank cards, account services, settlement services, deposits, credits and loans, liabilities redemption, export financing, security pledges and guarantees, discount products, transactions on the monetary and foreign currency market, issue-investment services, as well as electronic banking.
BGK has a rich experience in client service from the public finance sector spectrum, which possesses the ability to use BGK accounts, bank card servicing, opening deposit accounts, communal bonds issues, as well as using other issue-investment services.
The Bank's commercial offer is complemented by term deposits for individual customers.