BOŚ Bank and KUKE support the investments of Polish exporters
Bank Ochrony Środowiska and KUKE have signed an agreement that will provide the bank's clients with access to an innovative insurance solution supporting the development of their export potential.
KUKE guarantees will secure investment loans granted to exporters
The agreement between Bank Ochrony Środowiska and KUKE covers cooperation in offering payment guarantees for loans granted to exporters. These instruments, guaranteed by the State Treasury, secure the bank up to 80 percent of the value of the loan granted for the implementation of investments in Poland aimed at boosting the company's export potential.
“Pursuing its mission, Bank Ochrony Środowiska is constantly expanding its product offer, also focusing on exporters or companies that are just considering foreign expansion. Green transformation is not only a challenge, but also a great market opportunity for Polish enterprises. Renewable energy sources and other green technologies are a promising market where there is still room for new players”.
Both institutions also intend to educate Polish entrepreneurs on the possibility of internationalization of their activities, as well as support them in finding business partners or interesting projects on foreign markets, in which they can participate as suppliers or subcontractors.
“Polish exporters emerged from the pandemic in good shape, expanding their sales markets and confirming the attractiveness of their offer. Unfortunately, the Russian aggression against Ukraine has significantly worsened the prospects for international trade recovering from the pandemic. The WTO recently lowered its forecasts of global trade growth significantly to just 3 percent this year. But even in such an unfavorable environment, Polish goods have a chance to reach new recipients on different continents. The joint offer of financing the development of Polish exporters by BOŚ Bank and KUKE will certainly make it easier for them to compete in the international environment, because few countries provide such a wide range of aid instruments that start with supporting investments on the domestic market. We are ready to cooperate with small companies and the largest enterprises from the entire cross-section of the Polish economy that want to make investments that increase their production capacity or improve conditions for further growth. We also hope for many transactions related to the green transformation, in which BOŚ Bank specializes in financing, and which are currently very popular not only in Poland”.
Who can take advantage of the guarantee
The guarantee can be used by enterprises that are already exporters or finance their domestic investments in BOŚ Bank to generate exports. This means that either:
- the project should be implemented by an enterprise whose sum of revenues from export sales in selected three out of the last five annual reporting periods before the guarantee is granted is not less than 20 percent. revenues for the same selected periods;
- or the investment within three years after completion will generate a minimum of 20 percent export sales revenues.
The guarantee can cover up to 80 percent of the loan, the amount of which cannot be lower than PLN 5 million.
Export support system
Export development guarantee belongs to the export support system introduced last year, which enables banks to secure various types of financing granted to exporters. It includes guarantees and insurance for e.g. working capital loans for exporters or loans for acquisition or financing direct investments made by Polish entrepreneurs in foreign markets.
As part of one of the most comprehensive export support systems in Europe, KUKE introduced new instruments and modified the offer of existing solutions. In addition to the aforementioned, there are, among others, guarantees of repayment of liabilities to suppliers, which are so important in the search for new sources of supply, and guarantees for financing the supply chain, which help exporters, inter alia, obtain additional funds from banks and factoring companies. In turn, as part of the Shop in Poland program, KUKE is actively looking for Polish entrepreneurs willing to participate through the export of goods or services - "without leaving home" - in infrastructure projects in the most remote corners of the world, in which the insurer is financially involved. For all solutions, the procedures and document requirements have been simplified, the scope of goods and services covered by them and the possibilities of their use have been expanded.
The use of these instruments strengthens the exporter's financial capacity, positively influencing its relations with financing banks and contractors, enabling a significant increase in the scale of operations. KUKE's new offer has been used by many companies from various industries, from automotive, steel, through food, chemical and shipbuilding.