This document discusses Poland's State Development Bank (BGK) and its credit guarantee scheme for small and medium enterprises (SMEs). It outlines how BGK works with regional guarantee funds and commercial banks to provide guarantees to over 65,000 SMEs, facilitating over EUR 5.57 billion in loans. In particular, it describes the temporary de minimis Portfolio Guarantee Line program established in 2013 to counter economic slowdown, which is estimated to have supported over 22,500 new jobs but will expire in 2015. The guarantee scheme is shifting to focus more on development and innovation with support from EU structural funds and regional guarantee funds playing a larger role.

1. ​ S t a t e D e v e l o p m e n t B a n k
Microfinancing facility with guarantee
BGK and credit guarantee scheme for SMEs
16th October 2014

2. ​ S t a t e D e v e l o p m e n t B a n k
Key information
2
 Established in 1924
 100% state-owned
First-choice bank for the State in delivery of
social/economic development programmes
Organises funds and the system for
supporting export
Organises finance under Polish
Investments programme
Leading bank in finance and services for local
self-government units, municipal companies
and healthcare institutions
The bank supports absorption of EU
funding
Leading institution in the process of
consolidating public finances
The bank manages programmes and
government funds with regard to development
and modernisation of infrastructure
Organises efficient model for operating with
regard to guarantees for businesses

3. ​ S t a t e D e v e l o p m e n t B a n k
3
credits
Banks
Leasing
companies
leasing
SMEs
Guarantees
Bank Gospodarstwa
Krajowego
BGK JEREMIE
(UE holding funds)
De minimis Portfolio
Guarantee Line
49 Regional
Guarantee Funds
BGK participates as co
owner in 21 Funds
Counter guarantees
EUstructuralfundsStateBudget
Flowoffunds
Present Guarantee Scheme for SMEs in Poland

4. ​ S t a t e D e v e l o p m e n t B a n k
4
Volume of guarantees in Poland
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2006 2007 2008 2009 2010 2011 2012 2013
inmlnEUR
Guarantee Funds
BGK
TOTAL
exchange rate EUR 1 = PLN 4,19 as of 22nd August 2014
8%
88%
4%
Structure of guarantee activity in 2013
Guarantee Funds
de minimis guarantee
BGK other guarantees

5. ​ S t a t e D e v e l o p m e n t B a n k
5
De minimis Portfolio Guarantee Line
Objectives:
 to avoid the negative impact of economic slow down on SME sector
 to create incentives for banks to grant loans to SMEs
Conditions:
 Duration of the programme – 2 years
 Costs and expenses (i. a. defaults) covered from State budget
 Working capital and investment credits
 Max coverage 60%
 Guarantee fee - 0,5% p.a.
 Guarantee duration – max 99 months
(in case of working capital credit 27 months)
 Max PLN 3,5 mln (EUR 0,84 mln)
BGK BANK SMEs
Risk assesment - outsourcing
Portfolio de minimis
guarantee agreement
Loan with de minimis guarantee

6. ​ S t a t e D e v e l o p m e n t B a n k
EUR 3,2 billion
Total amount of the de
minimis guarantees
provided for SMEs
EUR 5,57 billion
Total amount of credits
covered by the de minimis
guarantees
over 65 000
Number of SMEs that
have received de minimis
guarantee
23
Number of commercial
banks participating in the
de minimis programme
*Data for the period 15th March 2013 – 31st August 2014, exchange rate EUR 1 = PLN 4,19 as of 22nd August 2014
*
De minimis Portfolio Guarantee Line
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7. ​ S t a t e D e v e l o p m e n t B a n k
De minimis Portfolio Guarantee Line - impact on SME sector
Research as of July 2014
29%
25%
46% To increase the credit worthiness of the firm
 No need to provide Enterpreneur’s individual
property as collateral
 Lack of other collateral than the guarantee
Reasons to apply for de minimis guarantee
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8. ​ S t a t e D e v e l o p m e n t B a n k
8
De minimis Portfolio Guarantee Line - impact on SME sector
Research as of July 2014
Effects of the de minimis guarantees
Q: did the guarantee allowed you to: A: % of answers „yes”
Improve your market position 91%
Increase sales 55%
Preserve existing jobs 53%
Increase the employment 42%
Undertake new investments 59%
Stabilize financial standing 78%
New jobs in SME sector 22 500

9. ​ S t a t e D e v e l o p m e n t B a n k
9
Changes in guarantee scheme 2015 +
 Portfolio de minimis guarantee line expires in 2015 as temporary anti crisis measure
 Increased role of EU structural funds available in financial perspective 2014-2020
 Minimized impact on state budget
 Guarantees focused on development and innovation purposes
 BGK as counter- guarantor for regional guarantee funds
 Increased role of regional guarantee funds as direct guarantors
BGK keeps leading role in Polish guarantee scheme

10. ​ S t a t e D e v e l o p m e n t B a n k
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Bank Gospodarstwa Krajowego
Center of Sureties and Guarantees
Al. Jerozolimskie 7
00-955 Warszawa
tel. +48 22 522 91 91
email: cpg@bgk.com.pl