COVID-19: Polish anti-crisis shield
During the press conference, the President of Poland and the Prime Minister, following the meeting of the Cabinet Council, announced an outline of package of support actions for the society and entrepreneurs referred to as “Anti-crisis Shield”.
The package is to limit the negative effects of the pandemic. Consists of 5 main pillars including different areas of the economy. The value of the package is estimated at PLN 212 billion (~47,3 billion EUR), i.e. almost 10% of the Polish GDP.
Pillar I, “defense of employees” is supposed to consist, among others, of:
- co-financing of 40% of employees' salaries up to the average salary in the national economy;
- "credit vacation";
- "vacation from administrative duties";
- support for the self-employed and those working under civil law contracts up to 80% of the minimum wage.
Pillar II “for entrepreneurs” is to focus directly on supporting the enterprise sector through such activities as:
- deferral of the payment of social security contributions or distribution in instalments without additional charges;
- no penalties for delays in public tenders;
- micro-loans up to PLN 5,000;
- operational leasing for the transport sector;
- extension of bank working capital loans;
- settlement of this year's loss next year.
Pillar III “Healthcare protection” is to include support for healthcare. Approximately PLN 7.5 billion will be allocated for this purpose, in particular for the infrastructure of infectious diseases hospitals and protection measures.
Pillar IV is intended to strengthen the Polish financial system. The government plans to allocate more than PLN 70 billion for this purpose. This pillar is to include:
- liquid funds;
- Polish Financial Supervision Authority (KNF) and Ministry of Finance regulatory package;
- National Bank of Poland (NBP) liquidity package.
More details about the NBP and Monetary Policy Council decisions regarding COVID-19 economics effects countermeasures you can find in our alert: NBP and RPP actions related to the worsening situation of Polish enterprises
Pillar V in the announced package are the solutions in the area of public investments
The government assumes the creation of a special fund of at least 30 billion zlotys foreseen to strengthen the expenditures for public investments. The fund consists of national resources, independent from UE’s support. Within the package is foreseen to finance investments in the area of construction of local roads, digitization, modernization of schools, energetic transformation, environment protection, alteration of different elements of state’s architecture and infrastructure (energetic, telecommunication, internet, roads and railways).
Solutions for companies executing public contracts are included in the package as well. As a priority, due to problems notified by entrepreneurs related to the absence of employees and continuity of supply chains, a suspension in the charging of contractual penalties was announced.
The drafts of legal acts introducing the specific solutions within the scope of Anti-crisis Shield are expected to be ready by the end of the current week.