The European Commission said on Friday it “has approved … an approximately EUR 1.6 billion (PLN 7.5 billion) Polish scheme that partially compensates large enterprises and certain small and medium-sized enterprises (SMEs) for the losses suffered due to the coronavirus outbreak and provides them with direct liquidity through loans.”
The European Commission added it was giving the green light to the support under temporary state aid rules it originally adopted in March and then amended twice.
The Polish loan plan is part of a wider support programme aiming to offer a "financial shield" for large enterprises in the country, the EU executive also said.
Margrethe Vestager, Executive Vice-President of the European Commission in charge of competition policy, was quoted as saying that “the EUR 1.6 billion scheme will allow Poland to compensate large enterprises and certain small and medium-sized enterprises for the damage suffered as a result of the coronavirus outbreak, while supporting their immediate liquidity needs.”
Vestager added that the measure “will help those businesses continue their activities during and after the outbreak.”
'Anti-crisis shield'
The European Commission earlier this month approved a Polish plan to offer EUR 2.2 billion worth of state aid to large companies as well as EUR 450 million worth of help for companies hit by the coronavirus "through the provision of loans and state guarantees on loans.”
The EU executive last month gave the green light to Polish state aid to businesses in the form of repayable advances, with a total budget of EUR 16.6 billion (around PLN 75 billion).
Earlier last month the EU executive gave the go-ahead to a Polish loan and guarantee plan aiming to support the economy to the tune of PLN 3.5 billion (around EUR 700 million).
Poland’s president at the end of March signed into effect a multibillion relief and stimulus package aiming to shore up the economy and shield it from the impact of the coronavirus.
President Andrzej Duda last month signed into law a measure to offer further support to the nation’s economy amid a COVID-19 lockdown.
Polish lawmakers at the end of last month backed a plan to expand the massive package of measures aiming to protect jobs and businesses.
Poland's parliament this month approved more support to the economy as part of the government's “anti-crisis shield.”
Less than a week later the government adopted a new measure to protect companies, jobs, borrowers and local governments.
Polish Prime Minister Mateusz Morawiecki in early April unveiled plans to throw a lifeline of at least PLN 100 billion (USD 24 billion, EUR 22 billion) to businesses hit by the coronavirus epidemic.
Massive cash boost from EU
The Polish prime minister last month called for a “new Marshall Plan” for Europe to aid the continent’s recovery from the coronavirus crisis.
Amid the pandemic, Poland stands to receive more than EUR 63 billion from EU coffers in grants and loans under a massive recovery plan proposed by the European Commission this week.
The new recovery fund, dubbed "Next Generation EU," includes EUR 500 billion in grants and EUR 250 billion in loans for member states, with the money borrowed on financial markets and repaid from the bloc's budget.
A total of 23,155 people have tested positive for the COVID-19 disease in Poland, with 1,051 deaths from the coronavirus so far, public health officials said on Friday evening.
(gs)
Source: PAP, ec.europa.eu