First Credit Guarantee Funds in Poland were formed within the framework of Local Programme of Initiatives financed from European funds (Phare) at the beginning of the 90’s. At the end of the 90’s, local and voivodship self-government authorities became involved in the process of creating funds. The main reason of this activity was to hasten the local economic and social development by reviving a business activity in a particular region.
The Poznanian Credit Guarantee Fund was formed due to common endeavours of Poznań City authorities and PKO Bank Polski, in December 1999. The decision to create a fund was based on the firm conviction that the lack of access to external capital, in the form of commercial credits or loans, is the major factor that obstructs the development of small and medium size enterprises in Poland. Impossibility to obtain a credit by a petitioner resulted from the lack of appropriate credit repayment collateral. Therefore, forming an institution that assumes an obligation to repay the credit (fully or partially) in case the debtor fails to fulfil his contractual obligations, was a proper step to take.
According to the initiators’ guidelines and assumption, the effect of this institution’s activity was:
- a facilitation for entrepreneurs in the access to external financing
- a development of local entrepreneurship
- an activation of labour market
- an increase of investment outlays connected with a regional development
The PFPK commenced its operating activity in June 2000, and its first guarantee was granted in July 25th, 2000. In 2004, BGK in Warsaw took up the shares in PFPK within the framework of the Government Programme called ‘Capital for the Enterprising’. This gave the opportunity to increase the Fund and guarantee capital. In January 2005, the Fund commenced participation in the Sector Operational Programme called ‘The Increase of Enterprises’ Competitiveness’, which helped to gain more funds and increase its capital. In respect of a guarantee activity, the PFPK established cooperation with the Self-government Credit Guarantee Fund in Gostyń (SFPK) in 2007. The fact of entering into a partnership contract has brought a number of benefits for debtors, i.e.:
- a possibility of increasing the guarantee level from the previous 60% to 80% of the value of the credit
- a possibility of increasing the amount of a guarantee from previous 650,000,00 zloty to 935,000,00 zloty
Since forming the PFPK, the Fund has become one of the most active one in Poland, playing at the same time the prominent role in the latest league table prepared by ‘The National Association of Credit Guarantee Funds’. In July 2007, there was an expansion of Fund’s activity at the area of Wielkopolskie voivodship due to arousing banks’ interest in a cooperation with the PFPK.