Today, Ukraine’s Minister of Economy, Environment and Agriculture Oleksii Sobolev and Poland’s Minister of Finance and Economy Andrzej Domański signed an agreement on the activities of Bank Gospodarstwa Krajowego (BGK). The deal opens up new opportunities for attracting investment, supporting exports and launching new projects for Ukraine’s reconstruction. BGK President Mirosław Czekaj also attended the signing ceremony.
Under the agreement, BGK can now operate in Ukraine, including providing the government, public institutions and private organisations with financial and technical assistance in the form of loans or other financial instruments. These include export support, grants or guarantees for implementing reconstruction and development projects to be defined jointly by the governments of Ukraine and Poland and the bank.
The Cabinet of Ministers of Ukraine had approved the draft agreement on 15 September.
“Ukraine and Poland share a common vision for investment and financial cooperation. We count on Poland’s support in implementing solutions for our European integration, launching new investment projects and creating financial instruments that will give businesses in both countries additional opportunities. The signed agreement allows BGK to work in Ukraine and provide support through loans, grants, guarantees or export development programmes,” said Oleksii Sobolev at the signing ceremony.
“The agreement between the governments of the Republic of Poland and Ukraine will grant BGK a status similar to that enjoyed by other institutions and development banks operating in Ukraine. It will enable BGK to introduce preferential financial instruments in Ukraine using the Ukraine Facility and the Development Cooperation Financial Instrument (FIWR). It will also regulate the activities of BGK’s representation in Ukraine and the status of its staff,” underlined Mirosław Czekaj, BGK President.
To carry out its functions, BGK may:
- set up offices in Ukraine
- hire personnel of Ukrainian, Polish or other nationalities
- hold negotiations, sign contracts, provide and receive guarantees, and undertake any other activities necessary for project implementation, as defined in the agreement
During the meeting, Sobolev and Domański also discussed key areas for further bilateral cooperation:
- European integration and export duties for Ukraine
- Development of affordable mortgage lending and cooperation on investment projects
- Support for investment projects and industrial parks
- Reform of public investment management to create a unified, efficient and transparent process ensuring that limited financial resources are directed towards key recovery priorities and population needs
