Background information

In late March the application of the Polish Mining Group (Polska Grupa Górnicza, PGG) for financial aid under the Financial Shield 2.0 scheme was approved. As a result the company will receive a liquidity loan of PLN 1 billion from the Polish Development Fund (Polski Funusz Rozwoju, PFR). The loan will have to returned by the end of February 2025. In 2020 due to the pandemic, PGG's mines operated in a limited capacity in the spring months. Furthermore, the energy sector also reduced their demand for hard coal. As the company duly proved the financial loss it suffered due the pandemic, PFR positively reviewed the application.

Content of measure

In early April, PGG received the whole amount granted. The loan will have to be paid off by the end of February 2025. The financial means from the liquidity loan will be used to settle trade liabilities (including purchases of goods and materials), salaries and employee benefit costs, public-law liabilities (such as fees and taxes) and other expenses related to financing the company's day-to-day operations, as set out in the loan agreement and approved by the PFR. Considering PGG volume of employment is approximately 40,000, so the total amount of monthly wages is over PLN 300 million.

Use of measure

The loan has just been received by the company. Use of the financial means of the loan and repayment are yet to be seen.

Contents

• Income protection

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Larger corporations	Does not apply to citizens

Actors and funding

Actors	Funding
National government Company / Companies	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	No involvement
Form	Direct consultation outside a formal body	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Company level

Involvement

Trade unions maintained pressure on the board to take all steps necessary to ensure business continuity for several months. Trade unions argued that without the aid from the PFR the company would likely fail to cover the current wage obligations for the staff. The monthly volume of wages amounts to some PLN 300 million (about €65 million).

Views and reactions

Supportive.

Sectors and occupations

This case is not occupation-specific.

Sources

• 02 April 2021: Aid for the Polish Mining Group (Wsparcie dla Polskiej Grupy Góniczej) (mediapfr.prowly.com)
• 08 April 2021: Polish Mining Group received a PLN 1 billion liquidity loan from PFR (Polska Grupa Górnicza otrzymała od PFR miliard złotych pożyczki płynnościowej) (www.bankier.pl)