BGK and EIB support strategic projects

The debate entitled “Possibilities of financing strategic investments” was attended by Jarosław Dąbrowski, Member of the Management Board of Bank Gospodarstwa Krajowego, Grzegorz Rabsztyn, Director of the European Investment Bank Group Office in Poland, and Christian Roy, Director for Central and Eastern Europe at Amber Infrastructure Limited.

Priority goals

Representatives of both banks – Grzegorz Rabsztyn and Jarosław Dąbrowski, agreed that the most important strategic investments in Poland include those related to EU projects, such as the European Green Deal, or the goals included in the National Recovery Plan.

– The priorities of Poland and the European Union are actually convergent – ​​we can mention here, first of all, the energy transformation and striving to achieve the goals of the European Green Deal – said Grzegorz Rabsztyn.

He added that this is also a priority for the European Investment Bank.

– We are the “climate bank” of the European Union, therefore we want to be the financial arm of the EU and its member states in terms of financing these projects – noted Grzegorz Rabsztyn.

He admitted that the investment needs related to the energy transformation are enormous and also constitute a significant challenge for the financial market in Poland.

– Our economists even estimate that EUR 1 trillion of green investments will be needed annually by 2030 to achieve these goals, e.g. those related to Fit for 55 or the European Green Deal – he assessed, assuring at the same time that the EIB is also ready to support such processes in our country.

He also noted that the European Investment Bank only finances projects that are consistent with the objectives and principles of the Paris Agreement (which obliges UN member states to reduce greenhouse gas emissions).

– And annually, within our financing, over 50% is allocated to green projects – said Grzegorz Rabsztyn.

He added that last year this was also achieved for the first time in Poland.

– 52% of EUR 5.1 billion seems to be an important achievement – ​​he emphasized.

Jarosław Dąbrowski pointed out that Bank Gospodarstwa Krajowego is one of the five largest development banks in Europe – its balance sheet total amounts to almost PLN 250 billion, and equity – PLN 40 billion.

– The bank is at the disposal of the state, but also of entrepreneurs – he reminded.

As he pointed out, BGK has two important tasks ahead of it – the first is support for private and state-owned companies, intended for the implementation of investments in the field of green transformation. The second goal is to co-finance programs related to the National Reconstruction Plan.

– I would like to remind you that over the next two years Poland will receive PLN 270 billion. In the grant part, which we are not implementing, and in the debt part – this is over EUR 30 billion, or over PLN 120 billion, which will go through our bank and to companies, entrepreneurs, public institutions – indicated Jarosław Dąbrowski.

BGK’s investment priorities also include the so-called hard infrastructure, i.e. road transport, ports and logistics, but also “soft” infrastructure – related to digitalisation.

He also admitted that Poland is not ranked highest in Europe in terms of innovation or economic competitiveness.

– We are rather at the bottom. In general, the level of investment in Poland to GDP – this is a synthetic measure that shows whether the country is developing or not – has been the third weakest in Europe in recent years. Only Bulgaria and Greece are behind us, and the Czech Republic, for example, is ahead of us – Jarosław Dąbrowski reminded.

He also drew attention to the war that has been going on in Ukraine for over two years, which, he noted, also poses a huge challenge for Poland, also in terms of investments in arms.

Is Poland investor-friendly?

The debate continued with the discussion on investment conditions in Poland. All panelists agreed that there are still many barriers. One of them is uncertainty regarding the economic, political, and geopolitical situation.

– The war behind the fence is a factor that foreign investors often take into account – admitted Grzegorz Rabsztyn, but – as he added – the role of banks and development institutions is to respond to such challenges.

– Unfortunately, these are the realities we currently live in and we have to get used to this uncertainty, but also introduce new instruments – he emphasized.

He recalled that the response of the European Union and the European Investment Bank to the outbreak of the war in Ukraine and the related energy crisis included the REPowerEU programme, which aims to reduce dependence on Russian fossil fuels and accelerate ecological transformation.

– The EIB is to provide EUR 45 billion in additional financing for renewable energy sources, energy efficiency and green technologies – said Grzegorz Rabsztyn.

Christian Roy agreed that uncertainty, including legal uncertainty, in our country is a problem for private sector investors.

– If investors decided to invest here, there was a big risk, so it had to be limited, which made the projects more expensive – explained Christian Roy.

In his opinion, however, things in Poland are heading in the right direction in this respect.

– At the moment, the government is aware that it is necessary to have clear, permanent regulations, especially to mobilise investments from the private sector. I am not saying that the situation is perfect, but investors are now encouraged to invest in Poland and this is becoming more and more visible – assessed the representative of Amber Infrastructure Limited.

At the end of the discussion, Jarosław Dąbrowski drew attention to an important issue resulting from the Monetary Policy Council maintaining high interest rates. It concerns PLN 1.3 trillion in savings held by private banks.

– This is PLN 1.3 trillion that is not being released for investment and credit activities in banks. Of course, it is a complicated project, but it is something that both the sector and the government, but also all of us, as people of the economy, must work on – emphasized Jarosław Dąbrowski.

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