On February 26, the Verkhovna Rada approved an agreement with Poland permitting Bank Gospodarstwa Krajowego (BGK) to operate in Ukraine. The ratification, announced by MP Oleksiy Honcharenko, received support from 261 deputies.
The agreement establishes the legal framework for BGK to provide financial and technical assistance for projects related to Ukraine’s restoration and economic development. Under the accord, the Polish state development bank can offer loans, credits, guarantees, grants, and other financial instruments to the Ukrainian government, local authorities, state-owned enterprises, and private companies. Funding may be provided in euros, U.S. dollars, or other currencies.
BGK will have the right to conduct all necessary activities to implement its projects, including negotiating and signing contracts, issuing guarantees and counter-guarantees, and employing staff of Ukrainian, Polish, or other nationalities in line with national legislation.
The agreement also ensures that guarantees and standby letters of credit issued by BGK and backed by organizations such as the European Commission or the Polish Ministry of Finance will be recognized as fully acceptable collateral with a liquidity coefficient of 1.0, strengthening the Ukrainian banking system. Additionally, BGK’s loans, credits, and other operations will be considered by the National Bank of Ukraine when calculating prudential standards, ensuring compliance with EU regulations.
BGK’s permitted activities include providing financial assistance through loans, grants, guarantees, and technical support, including training and capacity building for both state and private entities. The bank can also issue unconditional, irrevocable first-demand guarantees to banks operating in Ukraine, offering added stability for the country’s financial sector during the economic recovery.
This agreement significantly expands BGK’s capacity to support Ukraine’s reconstruction, development projects, and institutional strengthening, providing a robust framework for long-term investment and economic resilience.
