Guarantees and Warranties from the resources of the European Guarantee Fund

EUROPEAN GUARANTEE FUND

Legal basis
The European Guarantee Fund operates on the basis of the Act of 16 April 2004 (Journal of Laws No. 121, item 1262 of 31 May 2004).
The Fund has been located in Bank Gospodarstwa Krajowego (BGK), (the National Economy Bank) which is in charge of its resources.

The subject of warranty/guarantee
The guarantees and warranties are issued in order to secure:

• paying off credits and loans taken in banks which have signed co-operation agreement with BGK 
• fulfilling the obligations resulting from bond issue

Clients
A warranty or guarantee can be applied for by entrepreneurs who realize projects co-financed from the European Union funds on the territory of the Republic of Poland, in particular investment, educational/training and research ones.

The amount of the guarantee/warranty
The guarantee or warranty from the EGF can maximally include:

• 80% of a credit/loan, excluding interest and other credit/loan expenses – in the case of outlays refunded from the EU funds,
• 60% of a credit/loan, excluding interest and other credit/loan expenses – in the case of self-contribution,
• 80% of the nominal value of bond issue – if income from that issue is allocated for financing the outlays to be refunded from the EU funds,
• 60% of the nominal value of the release of bond issue - if income from that release is allocated for financing self-contribution.

The maximum amount of a guarantee or warranty cannot exceed the equivalent of PLN 5 million, converted according to the National Bank of Poland's medium exchange rate on the last day of the year preceding the issuing of the guarantee or warranty. In the year 2005 it is the amount of PLN 20,395,000.

See also:
www.bgk.com.pl/fundusze/fpu.jsp