Deputy Minister of Finance of Ukraine, Olga Zykova, held a working meeting with a delegation from the Polish Development Bank BGK, led by Karol Tofil, Director of the Department of International Partnerships and Analysis of the Bank’s International Development Instruments.
The meeting took place as part of the BGK delegation’s working visit to Kyiv and focused on the practical implementation of the Ukraine Facility instrument to support local communities and investment projects in Ukraine.
The parties discussed preparations for the full-scale operation of BGK in Ukraine following the ratification by the Verkhovna Rada and the signing by the President of Ukraine in March of the Bank Activity Agreement. The document grants BGK a status similar to international financial organizations, opening opportunities for large-scale operational work.
Olga Zykova thanked the Polish side for its consistent support of Ukraine:
“The Government of Ukraine is pleased to begin productive cooperation between Ukraine and Poland in implementing projects that are critically important for the restoration of communities and improving people’s quality of life. BGK plays a special role as a financial bridge between our countries, combining resources, expertise, and opportunities from European instruments for Ukraine’s recovery. I am confident that our cooperation will facilitate the rapid launch of practical projects, attract investments, and strengthen long-term Ukrainian-Polish partnership.”
Specifically, the meeting participants focused on:
- Opportunities for financing the restoration of critical community infrastructure by the bank, including water and heating systems;
- Combining EU grants with BGK credit lines to reduce borrowing costs;
- Mechanisms for guaranteeing local borrowings and practical aspects of their approval;
- Preferential VAT taxation conditions in international technical assistance projects and foreign loans.
In addition, approaches to implementing projects under the Ukraine Investment Framework (UIF) were discussed, as well as financial support for projects at the local level through Ukrainian state banks with guarantees from the European Commission.
Currently, within the Ukraine Investment Framework investment program, two BGK framework projects have been approved for implementation in Ukraine with European Commission guarantees: one in the private sector (investments in energy, transport, and construction totaling around €200 million) and one in the public sector (support for community infrastructure restoration of €20 million).
Following the meeting, the parties agreed to continue practical coordination and experience exchange for the effective implementation of joint initiatives and to strengthen Ukrainian-Polish partnership in the recovery of Ukraine.
