Government to offer new aid package for Polish business

2020-11-06 19:32 update: 2020-11-11, 21:10
Polish Prime Minister Mateusz Morawiecki. Phot. PAP/Leszek Szymański
Polish Prime Minister Mateusz Morawiecki. Phot. PAP/Leszek Szymański
The Polish government has prepared new support mechanisms and extended current measures introduced to help business sectors left reeling by the economic effects of the pandemic lockdown.

"Just like in the spring, the goal is to save companies and protect Poles from unemployment," said the government press office in a statement released on Friday.

The list of new crisis measures was earlier presented by Prime Minister Mateusz Morawiecki at a press conference.

Among the government's proposals for suffering SMEs are cash injections by the Polish Development Fund’s (PFR) Financial Shield of up to 70 percent of fixed costs not covered by revenues, if the company has experienced a 30 percent year-on-year drop in revenues.

It is also possible to convert PFR cash injections into subsidies for SMEs from restriction-hit sectors, conditioned on a cumulative decline in revenues from March 2020 to March 2021 of at least 30 percent.

Sectors affected by stricter sanitary rules will see the continuation of furlough payments and social security exemptions. There will also be an extension of financing for companies undergoing restructuring.

Other measures include the continuation of long-term loans with de minimis guarantees for SMEs plus liquidity guarantees for large firms and the financing of leasing costs for transport firms.

PFR's Financial Shield for large companies will be extended until end-March 2021. (PAP)