Companies to keep EUR 6.5 bn of COVID-19 state aid

As many as 75 percent of companies that received support from the COVID-19 stimulus package 1.0 have already received a decision about writing off their debts, totalling to about PLN 30 bn (EUR 6.55 bn) said the deputy head of the Polish Development Fund (PFR) Bartosz Marczuk.

Out of 348,000 companies that received support from the PFR 1.0 stimulus package, 260,000 had a large part of their debts written off. Some 82 percent of them approved the redemption value calculated and presented by PFR, 10 percent of decisions required changes (e.g. as a result of declarations of losses), while 7-8 percent of the decisions were in abeyance.

“So far, we have written off about EUR 6.55 bn, which constitutes an average of 63 percent of the amount the entrepreneurs received,'' said Mr Marczuk. He added that almost 40,000 companies are entitled to retain 100 percent of the support and these are mainly enterprises most affected by the restrictions introduced as a result of the COVID-19 pandemic.

“Considering that we are already very advanced in the redemption process, we can expect that the final amount that will be written off will reach PLN 40 bn (EUR 8.74 bn), plus around PLN 7 bn (EUR 1.5 bn) due to levy abandonment,” Mr Marczuk concluded.

The first beneficiaries of the PFR 1.0 Stimulus Package will start paying off on Monday, July 26.

The value of aid for micro, small and medium-sized enterprises from Shield 1.0 and 2.0, introduced to compensate part of the losses inflicted by the COVID-19 pandemic, amounted to PLN 68.1 bn (EUR 14.88 bn). The aid reached some 360,000 companies. The average subsidy for a micro-company employing up to 9 people amounted to PLN 80,000 (EUR 17,500), while for companies from the SME sector, employing from 10 to 249 people, around PLN 550,000 (EUR 120,226).