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Bank Gospodarstwa KrajowegoPoland's state development bank BGK to be international development bank - MinFin
Permanent inclusion of Poland's state development bank BGK among the entities involved in development cooperation outside the EU and the creation of a Financial Instrument for Development Cooperation therein will enable BGK to function as a development bank in the international arena, the Ministry of Finance wrote in the regulatory impact assessment the draft update to the Development Cooperation Act.
"The need for Poland to become involved in international aid to Ukraine, using funds offered by the European Commission and other foreign entities, necessitates urgent action to create a financial institution in Poland operating in the area of development cooperation," the finance ministry justified the draft.
It added that Poland, as a member state of the United Nations, the European Union and the Organisation for Economic Co-operation and Development (OECD), has made a number of commitments to become more active in the international arena to reduce poverty and increase development aid.
"The possibility for Poland to offer development cooperation instruments using its own financial development institution will significantly contribute to the implementation of these commitments," the ministry stressed.
"The permanent inclusion of BGK among the entities involved in development cooperation outside the EU and the creation of the Financial Instrument for Development Cooperation (FIWR) at BGK, is intended to create a systemic solution enabling BGK to function as a development bank in the international arena," it added.
Poland's Ministry of Finance stressed that the proposed changes are modelled on the activities of other development institutions from EU countries, which effectively combine development financing for developing countries' economies with support for domestic business.
"The changes will increase the range and attractiveness of instruments to support Polish business in third markets with a higher risk profile," it concluded.
Consultations on the draft are expected to last until December 18.
In the consultation letter, the finance ministry stressed that the legislative change is urgently needed due to the deadlines already set under the EU Ukraine Facility programme.
"The main purpose of the legislative amendment is to support Polish entities that plan to use funds under this EU programme," the ministry explained.
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