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RDP 2007-2013

In line with the Regulation of the Council of Ministers on loans from the state budget drawn for the purpose of pre-financing within the Rural Areas Development Programme (Journal of Laws No 156, item 968 of 2008), Bank Gospodarstwa Krajowego shall grant the aforementioned loans to beneficiaries of RDP 2007-2013, within the framework of :

Axis 3, "Diversification of rural economy and quality of life in rural areas" for the following activities:

  • Provision of basic services to rural economy and population,
  • Revival and development of rural areas.

Axis 4, "Leader," for the following activities:

  • Implementation of local development strategies,
  • Implementation of cooperation projects,
  • Functioning of local action groups.

1. Depending on the nature of the activity, the Borrower may be exclusively a local government unit (LGU) or a local action group (LAG).

2. The loan shall be granted for the purpose of implementing operations as part of the following activities covered by RDP:

1)   in the case of LGU:

a)  revival and development of rural areas,
b) provision of basic services to rural economy and population,
c)  implementation of local development strategies,

2)  in the case of LAG:

a)  implementation of cooperation projects,
b)  functioning of local action groups.

3. The amount of the loan granted cannot exceed the amount of funds obtained from EAFRD, awarded to the Borrower as a part of financial assistance.

4. BGK shall charge commission for to the loan granted, in the amount of 0.1% of the loan. The Borrower shall pay the commission on the release date of the first tranche of the loan by BGK.

5. Submission of the loan application to BGK shall be possible upon the evaluation of the application for assistance by a competent authority of the voivodeship government.

6. The beneficiary of the assistance interested in obtaining the loan shall be obligated to submit a loan application to a BGK Branch, including in particular:

1) the applicant's name, registered office and address,
2) the amount of the loan applied for,
3) the name of the operation implemented using EAFRD funds - with an indication of the applicable RDP activity.

7. Together with the loan application, the LGU applying for the loan shall submit the following documents:

1) a list of operations, approved by a competent authority of the voivodeship government,
2) documents required by BGK's regulations, necessary to open an account.

8. Together with the loan application, the LAG applying for the loan shall submit the following documents:

1) a positive opinion on granting assistance issued by a competent authority of the voivodeship government,
2) documents required by BGK's regulations, necessary to open an account.

9. Where the loan application is incomplete or contains irregularities, the BGK Branch shall demand that the applicant supplements the required data within a period of no more than 14 business days.

10. The loan agreement shall be concluded with the Borrower within a period of 30 days from the date of submission of a complete application to the BGK Branch.

11. BGK shall accept the Borrower's own blank promissory note, submitted together with a promissory note declaration, as a collateral securing the loan repayment prior to signing the loan agreement.

12. BGK Branches shall open the following bank accounts for the Borrower, which will be used exclusively for the purpose of handling the loan:

1)  the loan account - used by the Bank to transfer individual tranches of the loan and by the Paying Agency to transfer funds for the refund of eligible expenses incurred by the Borrower, simultaneously constituting the payment of the utilised loan,
2)  own funds account - used for collecting the Borrower's own funds to cover the liabilities under the loan agreement. 

13. In order to release the first tranche of the loan, the Borrower shall be obligated to supply the BGK Branch with the following:

1) the assistance agreement (for the purpose of making a copy for BGK),
2) tranche transfer schedule,
3) agreements with contractors of works and suppliers of goods and services, including the contractors' bank account numbers (for the purpose of making a copy), 

additionally, the Borrower is obligated to:

4) provide funds for the payment of the commission for the loan to the own funds account,
5) transfer funds ensuring the payment of invoices submitted to the Bank's Branch to the own funds account - in the part payable from the Borrower's own funds, respecting the proportions between the amount of the Borrower's own funds and the amount of the assistance granted, as defined in the assistance agreement. 

14. Prior to the release of subsequent tranches of the loan, the Borrower shall be obligated to provide the own funds account with funds sufficient to:

1)  repay the interest accrued on the utilised but not repaid amount of the loan on the interest maturity date,
2)  pay fees and commissions due to the Bank and resulting from the maintenance of own funds account,
3)  pay the invoices submitted to the Bank's Branch, in the part payable from the Borrower's own funds, respecting the proportions defined in the assistance agreement. 

15. The release of the loan shall be effected through the payment of invoices or other documents of equivalent probative value issued by the suppliers of services, submitted to the BGK Branch by the Borrower. The Borrower shall, together with the invoices/other documents, submit relevant instructions of transfer of funds from the own funds account.

16. Payments resulting from invoices and other documents of equivalent probative value shall be made according to the current schedule and respecting the proportions between the amount of the Borrower's own funds and the amount of the assistance granted, as defined in the assistance agreement. The Borrower's own funds shall be disbursed in the first place.

17. Payments specified in point 16 shall be performed in the form of two transfers, i.e.: 

- a transfer of the Borrower's own funds (from the own funds account)

and

- a transfer of the loan funds (from the loan account),

to the benefit of contractors/suppliers, in accordance with the numbers specified in the agreements between the Borrower and the contractors/suppliers.

18. The utilised amount of the loan shall be repaid from the funds granted by the Agency for Restructuring and Modernisation of Agriculture (the Paying Agency).

19. The Paying Agency shall transfer the refund of eligible expenses incurred by the Borrower as a result of the implemented operation, directly to the loan account maintained by BGK for the Borrower.

20. The Borrower is obliged to provide the Paying Agency in advance and in due time with information on the loan account number for the purpose of transferring funds for the refund of eligible expenses incurred by the Borrower.

Acceptance of loan applications by BGK for the purpose of anticipatory financing within the RDP will be possible upon obtaining the accreditation from the Agency for Restructuring and Modernisation of Agriculture.

Department for Regional Development Support