Background information

After the Financial Shield 1.0 was implemented from April 2020 onwards see case PL-2020-20/806 a follow-up programme has been devised.

Just like the original regulation, the follow-up is based on the Act amending the Act on the System of Development Institutions facilitating public support programme commonly referred to as the Financial Shield, operated by the Polish Development Fund (Polski Fundusz Rozwoju). The programme is divided into specific sub-sets of measures targeting:

1. Micro, small and medium firms.
2. Large firms.

The former is further divided into two segments:

• micro firms
• small and medium firms.

Ustawa z dnia 4 lipca 2019 r. o systemie instytucji rozwoju („Ustawa o SIR”), znowelizowana ustawą z dnia 31 marca 2020 r. o zmianie ustawy o systemie instytucji rozwoju.

Content of measure

The programme still targets large firms (over 249 employees) with annual turnover of more than €50 million. The main development that the follow-up scheme brings will be a new version of the preferential loan, with a new COVID-19 damage period lasting until 31 March 2021. The total amount of aid under the scheme foreseen is PLN 25 billion (some €5.5 billion).

Financial Shield 2.0 will differ from the original in such key aspects as:

• significantly easier process for low aid amounts;
• retained returnable nature of funds with the element of remission of the aid loan, which is related to the full credit analysis process;
• greater flexibility in terms of financing period, extended from 4 to 6 years and cost reduction.

Applications can be submitted from 1 January 2021 until the end of March (provided the approval of the European Commission is granted), so it cannot be established yet what will the impact be.

Use of measure

Not known yet. The scheme needs to be approved by the European Commission first. The application process commences on 1 January 2021.

Target groups

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

Actors and funding

Actors	Funding
National government	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

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

• No involvement
• Main level of involvement: N/A

Involvement

None.

Views and reactions

The views are critical. Social partners see the measures as not adequate.

Sources

• 31 March 2020: The Act of 31 March 2020 amending the Act on the System of Development Institutions (prawo.sejm.gov.pl)
• 05 January 2021: Konfederacja Lewiatan, Badanie Lewiatana (konfederacjalewiatan.pl)