COVID-19 Response Fund aims to secure funds needed to support actions regarding counteracting COVID-19.
COVID-19 Response Fund
For whom?Entities in public finance sector and entities outside this sector
What for?Financial support of public sector and other areas of the economy contributing to preventing COVID-19 and mitigating socio-economic consequences of the pandemic
Source of financing
COVID-19 Response Fund financial resources come from:
- contributions of entities in public finance sector, (excluding local government legal persons), except for the funds from subsidies from the budget, and funds referred to in the Public Finance Act,
- funds that, with the agreement of the European Commission, may be distributed for the support of implementing tasks regarding actions to counteract COVID-19,
- contributions from the state budget, including the budget of European funds,
- proceeds from treasury securities,
- funds from bonds issued by BGK,
- other income.
Allocation of funds
- financing or co-financing the implementation of tasks to counteract COVID-19,
- reimbursement of expenditure incurred for the performance of tasks to counteract COVID-19
BGK acts as the Fund’s operator, which means:
- compiling and updating annual financial plan of the Fund,
- administering the accounts of the Fund,
- servicing proceeds/payments made from the Fund’s resources,
- servicing debt incurred for the Fund,
- preparation of the reporting on the execution of the Fund’s financial plan
- ensuring current financial liquidity of the Fund, including bond issuance for the Fund
- allocation of periodically available funds of the COVID-19 Response Fund.
The Act under which the COVID-19 Response Fund was established does not specify the time frame of its functioning. This time frame will surely depend on the country’s epidemiological situation and its influence on the economy and public finance sector.
Payments from the COVID-19 Response Fund are made based on the financial plan that is agreed with the Minister of Finance and approved by the Prime Minister. The plan specifies the proceeds and expenditures of the Fund.