Ukraine’s Ministry of Finance reported on a working meeting between Deputy Minister Olga Zykova and a delegation from Poland’s development bank BGK focused on practical implementation of the Ukraine Facility for supporting local communities and investment projects, alongside preparations for BGK to begin full-scale operations in Ukraine. Discussion covered BGK’s operational launch following March ratification by the Verkhovna Rada and presidential signing of the agreement on the bank’s activities, which grants BGK a status similar to international financial institutions. The parties reviewed potential financing for critical municipal infrastructure such as water and heating systems, options to combine EU grants with BGK credit lines to lower borrowing costs, mechanisms to guarantee local borrowing and their approval process, and preferential value added tax treatment for projects financed through international technical assistance and foreign loans. They also discussed delivery under the Ukraine Investment Framework and channelling support via Ukrainian state-owned banks backed by European Commission guarantees. Two BGK framework projects have been approved under the Ukraine Investment Framework with European Commission guarantees, covering around EUR 200 million of private-sector investments in energy, transport, and construction and EUR 20 million for public-sector municipal infrastructure recovery. The sides agreed to continue practical coordination and exchange of experience to support implementation of joint initiatives.

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