Polish state-owned BGK finances export contract to Georgia. KUKE secures the loan.
Bank Gospodarstwa Krajowego (BGK), in collaboration with the Export Credit Insurance Corporation (KUKE), has finalised a USD 39 million credit arrangement for a project where a Polish firm will build a five-star hotel in the centre of Tbilisi.
This is a transaction within the export financing government programme in a buyer credit formula extended by BGK and secured by KUKE’s insurance policy. We’re financing the export contract of a Polish general contractor. Not only is the general contractor from Poland but Polish firms are executing at least 40 percent of the contract value, including the electrical installations, fire safety equipment and systems, furniture and other fittings and furnishings, Wojciech Hann, member of the BGK management board explained.
Bank Gospodarstwa Krajowego is initiating and implementing programmes for improving economic growth in Poland in conjunction with other institutions from the Polish Development Fund Group: The Polish Export Credit Insurance Corporation (KUKE), the Polish Investment and Trade Agency (PAIH), the Polish Agency for Enterprise Development (PARP), and the Industrial Development Agency (ARP). BGK is developing the system of sureties and guarantees aimed at stimulating entrepreneurship. One of its strategic goals is to increase the availability of funding and the scale of operations in supporting export activities of Polish companies. Bank Gospodarstwa Krajowego also manages European programmes and distributes EU funds at the national and regional level. It is also involved in programmes aiming at improvement of access to housing on the residential market.