Global Policy – a joint product of PKO Bank Polski and KUKE
Polish companies compete against foreign companies in terms of prices, quality and innovations, successfully winning international markets - at the end of 2016, the value of Polish exports was nearly EUR 184 billion, which represents a three-fold increase since Poland's accession to the European Union. Seeking new markets for Polish exporters and assistance in foreign expansion are among the elements comprising the Responsible Development Strategy. The Polish Development Fund coordinates the execution of a comprehensive programme aimed assisting exports. PKO Bank Polski and KUKE have just launched their joint product, Global Policy (Polisa na Świat), available in branches throughout Poland.
The SME sector is very important in the context of the dynamics which the Polish economy is growing with, and of the execution of the Responsible Development Strategy. It accounts for approx. 50% GDP and employs 70% of people in the private sector. Export is a natural tool for the development of SMEs, although its great potential remains untapped. Studies show that smaller companies are open to export, but in their case the risk is much higher than in the case of larger entities. Even one unpaid invoice may threaten the liquidity of a small enterprise, and debt enforcement abroad is much more difficult to carry out. We address these risks by offering instruments which effectively help to overcome the said obstacles. The new product of KUKE, implemented in cooperation with PKO Bank Polski, will make it easier for Polish microentrepreneurs to export and compete on international markets – said Paweł Borys, President of the Polish Development Fund.
Polish companies are more and more frequently willing to expand to foreign markets, including the more remote and demanding destinations. PKO Bank Polski wants to support them whenever they need assistance. It has therefore opened its foreign branches in Germany and Czech Republic, and keeps developing relations with correspondent banks. The aforementioned activities are accompanied by the Bank's cooperation with KUKE in terms of creating modern solutions supporting exporters – said Zbigniew Jagiełło, President of the PKO Bank Polski.
Global Policy is, above all, a breakthrough in the availability of our offer. Owing to the cooperation with PKO Bank Polski, for the first time in the history of KUKE we are able to pave such a broad way towards small and medium-sized enterprises. Global Policy is a standardised and significantly simplified product which does not only protect a company from financial loss, but also ensures recovery of insured debts, free of charge. Our solution will allow even the smallest entrepreneurs to boost their market competitiveness, focus on safe development of their business both in Poland and abroad, minimising the risk related to customer's refusal to pay for goods sold or services provided under a trade credit. Global Policy is the only joint product that we have launched in partnership with PKO Bank Polski, but we are hoping to continue the cooperation. There certainly is much scope for more projects of this kind – says Janusz Władyczak, Vice-President of KUKE.
So far, the year 2016 has broken records in terms of the scope of foreign expansion. The largest recipients of Polish exported goods include Germany, Italy, France, United Kingdom and the Czech Republic. Export handled by small and medium-sized enterprises has for several years been growing faster than export in general, and it currently is the central factor shaping its dynamics. Smaller companies have become much bolder in entering global markets and are able to maintain their operations there despite fierce competition. According to entrepreneurs, the risk of financial losses is the major obstacle hampering foreign expansion.
Global Policy - a product developed by KUKE and available from 1 June 2017 at the branches of PKO Bank Polski – addresses the risk. The insurance protects from customer's failure to pay for goods or services sold under a credit, covering both domestic and foreign transactions, thus ensuring financial liquidity and securing the company against profit loss. The policy guarantees insurance to customers of PKO Bank Polski representing small and medium-sized enterprises, who have been running business operations for at least 18 months and who issue invoices with a 60-day payment term. The insurance is tailored to the needs of even the smallest companies, and debt recovery is provided free of charge.
It is not the only product of the Bank designed for exporters aimed at securing foreign transactions of companies. PKO Bank Polski also offers such solutions as: export documentary credit or confirmation of export credit by PKO Bank Polski, in which the Bank assumes an obligation to make a payment in favour of the exporter. Exporting companies may also take advantage of discounting export credit receivables, timely payment guarantees and performance bonds.
As part of the Polish Companies' International Expansion Programme, the Polish Development Fund offers companies modern and comprehensive financial and consulting instruments. Their purpose is to support the development and increase the scale of Polish exports and investments on foreign markets. PFR Group's integrated offer aimed at financing exports totals PLN 60 billion (financing - PLN 36 billion, guarantees - PLN 8.2 billion, insurance and factoring - PLN 9.6 billion, settlement limits - PLN 3.5 billion, capital as part of the foreign expansion fund - PLN 1.5 billion). The products are distributed by KUKE, BGK and other commercial banks. PKO Bank Polski is the strategic partner of PFR Group in terms of making financial and consulting products available to enterprises.