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The "Polish Investments" Program has met with substantial interest and a great deal of questions. Different names for the company which is to be the Program's component have also been used. We would like to clarify that for the time being its working name is the Special Investment Vehicle. For now, we would like you to delve into the most frequently asked questions concerning that project and the accompanying answers. We would also like to refer you to the presentation prepared on that subject.

The Polish Investments Program

1. Who will make investment decisions at PIR?
   
   The authorities of PIR will be established in accordance with the Commercial Companies Code. The Management Board of PIR, supervised by the Supervisory Board, will be responsible for development and implementation of the investment strategy. It will be subject to approval by an independent Supervisory Board and the General Meeting of Shareholders.
   
   Investment decisions within the Programme's framework will be approved by the PIR Management Board based on analyses, due diligence and recommendations of PIR's analytical team. Next, the investment project will be submitted to the Investment Committee composed of the Supervisory Board's members (it is possible to appoint independent experts to express an opinion), which will evaluate the project and provide support in further analytical work, if necessary. Following the Investment Committee's positive opinion of the investment, the final decision on its implementation or rejection will be undertaken by the Supervisory Board, composed of persons with the required business and investment experience.
    
2. What are the safeguards of BGK against non-essential influence on spending?
   • BGK has banking license and the necessary approvals of the Polish Financial Supervision Authority for management board members to perform their functions
   • BGK applies its own credit policy and risk assessment models, subject to regular internal and external audits
   • BGK implements continuous substantive assessment of banking risks (different types of risks, different types of monitoring, reporting, etc.)
   • In BGK, there is a complete separation between commissioned activities (performed by BGK for stakeholders, such as Ministry of Finance) and own activities (conducted on Bank's own account). This separation manifests itself in a completely different operating, legal and accounting procedures
     
     Factors presented above determine the type and conditions of financial instruments offered, as well as protect the bank against economically unjustified activities.

3. What are the safeguards of PIR against non-essential influence on spending?
   
   Decision-making for PIR's investments is a 3-tier process requiring the consent of authorities at every stage:
   • The investment decision will be taken in the first instance by PIR's investment team and the Management Board. Projects which receive approval of the Management Board, following due diligence analysis, are "ready-to-go" projects
   • The next stage of the investment's approval is the Investment Committee composed of some of Supervisory Board's members. Investment Committee may include independent persons having expertise in the analysed business, invited for consultation
   • The final investment decision is taken by the Supervisory Board in a plenary session, following an earlier recommendation of the Management Board and the approval of the Investment Committee
   • At each of the three above stages, the investment project may be rejected or sent back for improvement to mitigate identified investment risks
   • The investment process is based on good practices of funds, such as PE/SWF and EBRDThe programme requires a private partner to be part of the project on comparable financial terms. Private entities have their own investment criteria, and it constitutes yet another verification plane for an investment.

The Management Board is responsible for implementing the investment policy and for preparing the investment, whereas the Supervisory Board and Investment Committee are responsible for the investment's approval.

The Management Board and the Supervisory Board will consist of individuals with experience in the private sector, having long-term expertise and prestige. Implementation of economically unjustified projects by such persons would involve the loss of credibility and reputation in the market. In addition, exertion of political influence or attempts to dismiss such persons would be received very negatively by the public.

Due to the requirements of Eurostat (the company is not to belong to the public sector) and of the Office of Competition and Consumer Protection (state aid issues), the company may not implement economically unjustified projects. This is a very powerful performance guarantee.

The company will employ external consultants to conduct due diligence (DD), develop financial model or verify it.

PIR will apply (where possible) the information procedures and best practices for companies listed on WSE.

The decision-making process and corporate governance of PIR are based on the best practices of PE / SWF and EBRD.

PIR is subject to the same rules and procedures as other companies of the Ministry of Treasury.
 

4. Is there a risk to implement projects economically unjustified?
   
   The Programme's objective is a market-oriented use of funds. In order to activate funds under the Programme, the investments must be characterized by a positive net present value (NPV) and offer a market rate of return for BGK and PIR. Both BGK and PIR, in their evaluation of the credit margin and rate of return on investment, will take into account the cost of, among others, capital, project risk, appropriate safeguards and their own operating costs.
   
   Investment policy guidelines have been presented in the Ministry of Treasury's presentation. However, precise definition of product's parameters (loan, guarantee, bond, capital investment) will depend on a given project and its specific parameters, as well as independent decision of BGK and PIR. Infrastructure projects, particularly at their design stage, are non-standard and have different risk and return characteristics.
    
5. If government officials wanted PIR and/or BGK to finance a given investment, would such project be launched in the case it is not profitable?
   
   BGK and PIR will implement only those projects that would be profitable for them. BGK, which has a banking license, may not surrender to non-bank influences, whereas the decision-making process in PIR disclaims any interference from outside.
    
6. What is the remuneration received by the Management Board of Polskie Inwestycje Rozwojowe?
   
   Remuneration will be set in the managerial contract at a market level for this type of funds.
    
7. What are examples of similar solutions around the world?
   
   Products (loans, guarantees, capital) and operation of the PI Programme are analogous to activities of EBRD worldwide. In addition, while designing the Programme, we were guided by the best practices of similarly operating funds across the world. A list of common features that we borrowed from global funds is presented below.
   
   Investment policy / Business model
   • Profitability is the main criterion for selection of projects
   • Flexible financing tools both in the form of capital financing and debt financing:
     • Temasek (Singapore) – so called "Investment Themes"
     • EBRD (international) – so called "Transition Criteria"
   • Capital involvement as a passive investor in minority stakes only:
     • EBRD (international)
     • KfW (Germany)
   • Provision of long-term financing:
     • Marguerite Fund (Pan-European)
     • EBRD (international)
   • Reducing the regulatory and political risks:
     • Marguerite Fund (Pan-European)
     • EBRD (international)
     • Norway National Reserve Fund (Norway)
     • GIC (Singapore)
   • Investment in the project finance formula:
     • EBRD (international)
     • EBI (Pan-European)
     • KfW (Germany)
     • UK Guarantees Scheme (Great Britain)
     • Marguerite Fund (Pan-European)
     • Norway National Reserve Fund (Norway)
8. Corporate governance / Decision process
   • Supervisory Board with a majority of independent members
     • Temasek (Singapore)
   • Presence of Advisory Panel in the Supervisory Board
     • Temasek (Singapore)
     • Khazanah Nasional (Kazakhstan)
     • KKR (USA)
     • Blackstone (USA)
   • Three-tier decision-making process (Supervisory Board, Investment Committee, Management Board)
     • Temasek (Singapore)
     • GIC (Singapore)
9. Will the PI Programme result in sale of state-strategic companies?
   
   Only shares of companies intended for privatisation will be contributed to PIR and BGK. Controlling stakes of shares of strategic companies will remain under the direct supervision of the Ministry of Treasury.
    
10. Will it be possible to dismiss members of the PIR Supervisory Board?
    
    A Supervisory Board member can always be dismissed by the General Meeting of Shareholders. However, we believe that independent members of the Supervisory Board (5 out of 9 members of the Board) will be characterized by an excellent expertise and skills. In the event that such a person complies well with his/her obligations and brings added value to the PIR Supervisory Board, dismissal of such a person should be more of a political and PR problem for the dismissing party than for the dismissed.
    
    The term for members of the Supervisory Board lasts 5 years. A person whose term of office expires may be re-appointed for another term.
     
11. Is there a risk that the Programme would displace private capital?
    
    The idea behind the Programme is to motivate private sector to invest more in infrastructure projects by initiating or closing project's financing (so called "the first penny or the last penny"). BGK may be part of consortia with commercial banks supplementing debt financing. PIR's co-investments will also require the presence of a strategic partner in the project, assuming the controlling stake of shares. The Programme has no intention of pushing private capital out, but rather to support it and encourage investment.
    
    If there is a project that private investors would like to join and could implement on their own, then we do not see the need to engage the instruments of the Programme.

* * * * *

 PROGRAM - ASSUMPTIONS

1. When exactly does the Ministry of Treasury want to set up a special investment vehicle (further SIV)? What will be its legal form?
   
   We would like to set up a special investment vehicle in the near future so that it could start active operations later this year. We expect that initially, it will be a company with the sole Treasury shareholding. We are also considering the possibility of inviting financial institutions to the shareholding. Due to the planned scale, it will be a joint stock company. The company's name will be determined at the stage of providing the company's statute (now we tentatively call it Special Investment Vehicle).
    
2. When and in what form will it be recapitalized? What will be the share of institutional investors? Which institutional investors they will be?
   
   Initially, the capital necessary for the company will be provided by the Treasury. However, one of the program's objectives is to mobilize the resources held by private investors. Therefore, based on the capital provided by the Treasury for the implementation of infrastructure projects, we will also want to raise private resources. This will allow to increase funds at the disposal of the "Polish Investments" Program. 
    
3. What Treasury assets will be managed by the company? And what will be their value?
   
   SIV and Bank Gospodarstwa Krajowego will handle blocks of shares in state-owned companies listed on the WSE. Strategic companies will remain under the supervision of the Ministry of Treasury, whereas the prospective sale of the blocks of shares in strategic companies will be possible only at the level which guarantees maintenance of corporate control. In the opinion of the Ministry of Treasury, privatisation "surplus capacity" amounts now to several billion zloty and these assets will be contributed to both entities. We will implement the assumed privatisation plan by the end of 2013. 
    
4. Which special purpose vehicles will be forming SIV? Will they include private investors and state-owned companies? On what basis?
   
   The "Polish Investments" Program assumes establishment of special purpose vehicles, which will be responsible for the preparation and implementation of specific infrastructure projects. The main shareholders of special purpose vehicles will be private entities, as they declare interest in the implementation of a given project and have the necessary know-how on the sector in which they invest. In the initial period of operation of special purpose vehicles (infrastructure construction time or commencement operations), SIV will be their shareholder. Depending on the need or the project's profitability, SIV may remain in the shareholding for a longer time. However, the Treasury expects SIV to 'leave' following adequate profit taking on the investment. The investment agreement on the terms of capital share contributed by SIV to the project implementing SPV (Special Purpose Vehicle) could guarantee SIV the resale of its shares to a co-investor or placement of the Treasury share on the stock exchange. 
    
5. Did the Polish government, giving birth to the new "Polish Investments" project, follow the example of similar solutions used in other countries where such activities have been successful?
   
   Examples of programs stimulating the economy in other countries

Germany
Kreditanstalt für Wiederaufbau (KfW)

KfW was established in 1948 on the initiative of the Allies, in relation to economic aid offered under the Marschall Plan for war-destroyed Germany. The activity of KfW, and later KfW Bankengruppe, is closely linked to the needs and development of the German economy. KfW, while performing the mission of public development bank, cooperates with all commercial banks in Germany, savings banks and cooperative banks. 

KfW offers guarantees and loans but it also invests capital, to a minor extent. The bank supports infrastructure investments, including municipal projects. As an institution with the highest rating (AAA), it may raise funds on favourable terms on the capital market. In result, KfW Bankengruppe offers credits to interested enterprises. 

Indonesia
Indonesia Infrastructure Guarantee Fund (IIGF) – PT Penjaminan Infrastruktur Indonesia

Guarantee fund with the status of a state enterprise (100% control of the Minister of Finance), it began its operations in May 2010; initial capital of USD 100 million, planned growth to USD 500 million; support of the World Bank - a co-guarantee line for USD 480 million

• the first guarantee issued in October 2011 for a project to build Pemalang Central Java Steam Power Plant (project value of USD 3.2 billion)
• in progress: guarantee for a project to build Bangkuang Puruk CAHU - Batanjung - Lupak railway line of 400 km in the province of Central Kalimantan.

South Korea
Korea Infrastructure Credit Guarantee Fund (KICGF)

Guarantee fund for infrastructure projects, operating since 1995, under management of Korea Credit Guarantee Fund (KODIT), a government guarantee body for private companies - by the end of 2011, the capital of KICGF amounted to USD 457 million, the portfolio of granted guarantees amounts to USD 5.87 billion - guarantees for a number of motorway and expressway projects, e.g. Seoul – Chuncheon Expressway project of 61 km, linking Seoul and the Gangwon province, which is a tourist centre of Korea (guarantee of a minimum income for the concessionaire). Construction completed in July 2009. 

France 
Government program of loan guarantees for PPP projects

A part of anti-crisis package adopted in February 2009 (Plan de relance de l’economie, Loi no. 2009-179 of 17.02.2009), the total guarantee amount of EUR 10 billion, market conditions, coverage of up to 80% of project value from private sources, program administered by MAPPP (PPP government centre operating under the Ministry of Finance) - guaranteed projects: four major projects to build high speed railway lines, including the largest project, the Tours - Bordeaux line (LGV SEA) of 302 km of a total value of EUR 7.8 billion, including 3.2 billion package of bank loans with a tranche of EUR 1.1 billion guaranteed by the government (the world's biggest railway project with a private concession, for 50 years of operation). In the same project, a member of the consortium of investors (25.4% of the project equity) is company CDC Infrastructures, a subsidiary of state development bank, Caisse des Dépôts et Consignations.

Great Britain
The UK Guarantees Scheme

A new program of supporting public and private investment in infrastructure announced by the British government on 18 July 2012, with a total guarantee limit of GBP 40 billion. The program is administered by Infrastructure UK, a HM Treasury unit responsible for financial policy of the government in respect to infrastructure investments. The government retains a lot of flexibility in shaping the terms of the offered guarantees, depending on the needs of individual projects. Guarantees are offered for projects meeting five criteria:

• projects of "national importance", as defined in the UK National Infrastructure Plan 2011
• projects ready to begin the construction phase within 12 months of receipt of the guarantee
• projects financially credible, of closed financing in respect to equities and with the approval of sponsors for a possible project restructuring to reduce taxpayer risk
• projects that without the government guarantee are likely not to obtain bankability within a reasonable period of time
• projects which, according to HM Treasury, will have a positive impact on economic growth and do not represent an unacceptable economic or fiscal risk

6. Some experts argue that public investments are less efficient than investments undertaken by the private sector. Is there a concern that a company not granted a bank loan would come to the PI Program?
   
   The basic premise of the Program is for the investments to pay off in the future and to offer the market rate of return. Both, the BGK loan and SIV investment in SPVs will be analysed through the prism of the criteria used by commercial banks. The added value of the Program is the long-term nature of the BGK resources and SIV investments. Program's efficiency will be assured by the existing staff of BGK, which already operates on the infrastructure market, as well as professionals employed by SIV. 
   
   The private sector is a better owner. Therefore, Program's instruments will not be the leading donor of funding and capital. We are committed to see that the private investor wins majority of the capital, so that it will have operational control over the investment project. 
    
7. Will the state spend the resources effectively?
   
   Yes. The "Polish Investment" Program relies on profitable projects only.
    
8. How does the "Polish Investments" project relate to the idea of prof. Leszek Pawłowicz, where the established company would not sell its shares at all but would use them as collateral for incurred loans?
   
   The "Polish Investments" Program was based on the idea of the Institute for Market Economics (IBnGR) headed by prof. Leszek Pawłowicz. The Institute's idea was to grant guarantees for investors in the public-private partnership (PPP) projects. The Ministry of Treasury (MT), The Ministry of Finance (MF) and Bank Gospodarstwa Krajowego (BGK)  while analysing the market needs (also taking into account the Institute-supplied analysis), went a few steps further and decided to offer the market a broad and flexible investment tool. The "Polish Investments" Program allows to continue the Institute's idea, whereas BGK may be the entity granting guarantees for PPP.
    
9. On what basis was it assumed that the project of cooperation in the public-private partnership system would bring tangible benefits, since PPP does not operate dynamically?
   
   The basic idea of the Ministry of Treasury, The Ministry of Finance (MF) and Bank Gospodarstwa Krajowego (BGK) team developing the Program was "what to do to succeed" rather than "what to do to show we can't succeed". Such an approach in the government administration opens new opportunities, and the PI Program constitutes such an option. 
   
   We are aware that in the case of Public-Private Partnership, the PI Program is only one of many solutions that should be launched to make PPP in Poland more active. But in order to widely activate PPP in Poland, a catalyst is necessary. The PI Program should be such a catalyst, as it goes much further than the PPP framework and it is a tool for a wide range of investment structures, including PPP.

* * * * * 

 REVENUES FROM PRIVATISATION

10. What is the goal for setting upper limit for the privatisation program (the planned 5 billion and 10 billion zloty by BGK) since in the previous years, the intended privatisation objectives have not been fully implemented? Will the PI Program accelerate privatisation?
    
    The PI Program is a flexible solution. We plan to provide it with the resources gradually, as the need arises. It will be probably unnecessary to obtain an additional 10 billion zloty in 2013 (although we do not exclude such a possibility). We believe that with good market conditions, we are able to provide the resources required by the Program. Everything, however, depends on the needs of the Program and the market situation.

* * * * * 

 PROJECTS

11. What specific investment projects would be funded by Special Investment Vehicle?
    
    For SIV, established by the Treasury, the decisive factor will be the profitability of a given project. These will be large infrastructure projects, such as investment in gas and energy transmission infrastructure, mining, energy generation, transport, maritime, port, road and railway infrastructure, as well as local government infrastructure. Sample projects include coal and gas power plants in Stalowa Wola, Kozienice, Opole, infrastructure for the currently erected LNG terminal in Świnoujście, pipeline from that city to the southern Poland, gas storage facilities, as well as new chemical factory on the Polish coast. Details of the investment policy of the PI Program will be determined by BGK and the planned SIV. 
     
12. How do you know that the "Polish Investments" Program will succeed since there is no database of projects on which the capital would be spent?
    
    At this point, it is crucial to determine the project selecting criteria, which will allow to select profitable projects. The Ministry of Treasury has developed a preliminary list of potential projects that are relevant to the economy and companies. These projects are at an advanced stage, but due to funding problems they have been suspended or they are waiting for suitable opportunities. For obvious reasons, we cannot disclose all of the projects. Certainly, an interesting project is the north-south pipeline, essential for the Polish security, which is to be build by Gas-System (due to investment solstice, the company had to postpone independent commissioning of investment). There are also other "ready" energy and gas projects.
     
13. Will the agreements concluded by SIV feature anything special in comparison to the classic trade agreements concluded on a commercial basis?
    
    No.
     
14. In what formula is it possible to support road investments?
    
    Road investments may be supported by way of: granting loans to local government building roads, granting loans to road building companies, granting guarantees to road building companies (good performance guarantee, financial guarantee), capital and credit support for potential investments of Public-Private Partnership.

* * * * * 

 COMPANY

15. Which agency will oversee SPVs and SIV? 
    
    SIV will be supervised by the Treasury and an independent supervisory board. SPVs will be subject to control by governing bodies of special investment vehicle (SIV), as well as their shareholders and institutions providing debt financing, in consideration of the proper use of credit resources. 
     
16. Who will head special investment vehicle?
    
    Governing bodies of the company will be elected by way of a competition involving professional consulting firm.
     
17. Will the company fall under the Public Sector Salary Cap Act? Where to get the professionals to be involved in a salary cap company?
    
    Remuneration will be developed based on the management contract formula.
     
18. Who will be the shareholder of Special Investment Vehicle?
    
    We anticipate that, initially, the Treasury will be the shareholder. 
     
19. Will Special Investment Vehicle be listed on the Warsaw Stock Exchange?
    
    It should be a company listed on the Warsaw Stock Exchange. It is about full transparency. We are talking about public money, thus the investment processes must be carried out in a professional and transparent manner. 
     
20. How will SIV be different from the Industrial Development Agency?
    
    The answer is in the word "infrastructure". Industrial Development Agency is engaged in restructuring, whereas we deal with major infrastructure projects, which could give our country a chance to leap forward.

* * * * * 

 BGK

21. What is the exact role of BGK in the Program and what will be its relations with the company of the "Polish Investments" Program? What will be the division of roles between the two entities?
    
    Bank Gospodarstwa Krajowego will be a debt financing vehicle as the Program's operator. SIV will invest capital in special purpose vehicles already engaged in preparation and conduct of specific projects.
    
    Capital involvement of the Bank in the SIV shareholding is also possible. The main role of BGK will be to provide loans and guarantees for the implementation of investment projects. We also plan for SIV, set up by the Treasury, to be in agency relation to BGK and to be involved in active search of investment projects, in which the Program could complement the offer of commercial banks. The Program aims to complement the offer of commercial banks. 
     
22. Where will the Treasury funds to recapitalize BGK come from?
    
    The funds needed to recapitalize BGK will come mainly from the sale of blocks of shares in the state-owned companies contributed within the increase of Bank's share capital. 
     
23. Why BGK, and not any other bank?
    
    Because BGK is the only fully owned state bank that, under its new strategy, will be involved in long-term loans (10-15 years), which may not be offered by commercial banks due to their limitations.
     
24. Will it result in creation of another state behemoth? 
    
    BGK already exists and will be extended only with additional resources for investments. Special purpose vehicle will only supply investors with capital, while industry investors will manage the investments operationally, as they are the most efficient in this regard. However, SIV will employ up to several dozen people (mostly for the purpose of analysis and evaluation of investments, as well as to actively seek projects).
     
25. How much cash will be available to BGK?
    
    For the purpose of the PI Program, BGK may be recapitalized. At the moment, we estimate that this amount will eventually reach 10 billion zloty. This amount, however, will depend on BGK's demand for equity. As with any bank, the increased capital base in BGK allows to grant loans at a level several times higher. However, we see here certain liquidity constraints of BGK and limitations on the number of profitable projects.
     
26. Regarding the construction of financing investments by BGK. The Bank is to be contributed, as a part of Bank's capital increase, with blocks of shares of companies controlled by the Treasury. Does BGK necessarily have to sell these blocks? Is the contribution not enough to have it on its balance sheet?
    
    BGK will sell the blocks due to the economics of the case and the bank's security requirements, namely the capital adequacy parameters. Shares do not fully count in the bank's regulatory capital. Shares have one function, the cash - another. It is not possible to obtain the effect of financial leverage when the bank's own funds are powered with shares.
     
27. Will the BGK funding be offered on terms better than market conditions?
    
    We assume that it will take place on market conditions. The basic premise of the Program does not account for an easy distribution. Money will be working to give BGK and, consequently the Treasury, the expected return. On the other hand, the long-term loans (10-15 years), which may not be offered by commercial banks due to their limitations, will constitute the BGK's added value.
     
28. BGK is in fact doing the same thing that could be done by other commercial banks in Poland, i.e. it finances investment activity of enterprises. It may turn out that the problem is not the lack of supply of these credits, but the lack of credit demand. Is there such a concern? Will banks buy the bonds issued by BGK? Will it not limit an already faint bank lending activity for the Treasury sector? 
    
    BGK will be responsible for filling the gap in long-term financing (10-15 years), not offered by commercial banks (due to their limits). The lack of credit demand has many causes. One is the possibility of indebtedness by private sector and local governments (jointly treated as investors). In the event that investors have already reached their credit limit, they may not take on new loans. However, the PI Program provides a solution to this problem in the form of SIV, which may get involved in the investment as a partner. Supporting investor's capital with the SIV equity (in the form of mutual special purpose vehicle in order to implement the project) increases the project's lending capacity. Local governments will be able to take advantage of this opportunity with the Public-Private Partnership projects. 
     
29. Will recapitalization of BGK count as state aid?
    
    BGK is a state-owned bank. In fact, such banks exist in every country and must be periodically recapitalized by the owner. In line with its strategy, BGK withdraws from commercial activity - individuals, MIS, ultimately also municipal companies. Thus, it will not constitute a competition for the banking sector. The Bank will be active only in the long-term infrastructure investments and it will be its main objective. In this area, it will also not stand as a competition for the banking sector, as Bank's interest in this area is limited. 
    
    These changes were initiated a long time ago and the investigation procedure of the Office of Competition and Consumer Protection (UOKiK) had no effect on the change in strategy. It only confirmed the approved direction. For these reasons, recapitalization of BGK will not constitute an illegal state aid restricting competition in the public sector.
     
30. When the money from the Program will be available and for whom? Is it only for the power and gas sector? Is it only for state-owned companies and local governments or for the private companies as well? Minister Budzanowski said that for private companies, too. But what would be left for them, if major energy projects take it all? 
    
    The PI Program targets mainly private investors. In the event of limitation of the Program resources and a large number of projects, a key project selection indicator will be its profitability and the security of interests of BGK and SIV. The ownership structure of the entity wishing to join the Program does not matter. Infrastructure projects may be implemented by both fully independent entities, as well as those with Treasury shareholding.
    
    The concept of infrastructure investment goes far beyond the energy and gas sector. The Program targets long-term large investments. It covers, but is not limited to: road infrastructure (toll and free roads), railway infrastructure (railroad tracks, rolling stock), energy infrastructure (generation and distribution), gas infrastructure (distribution and production), telecommunication infrastructure (fibre optic lines), environmental infrastructure (sewage treatment plants, waste incinerators, landfill), local government infrastructure (municipal roads, sports and cultural facilities, parks, council housing, communication, education), maritime and port infrastructure (breakwaters, port dredging).
     
31. Why is it that government officials are to make decisions whether to grant a loan or not?
    
    It is not the officials who will decide on the choice of project and its lending but the transparent criteria. They are designed so as to grant funds to viable projects. Compliance with these criteria and financial analysis of projects will be handled by professionals from the financial market.
     
32. How would you relate to concerns formulated in the media about politicization of the investment process in the BGK operations, where the Minister of Finance will be its indirect owner?
    
    BGK applies strict approval processes for financing investments. It is subject to supervision by the Polish Financial Supervision Authority. Its regulations force banks to set certain procedures for assessing the loan application and the required security for the borrower's assets. BGK is independent in this regard. 

* * * * * 

 IMPACT ON ECONOMY

33. BGK will obtain resources from bonds covered mainly by banks. Will it not reduce lending, particularly in the Ministry of Treasury sector?
    
    The bonds may also cover open-end pension fund/Investment Fund Company and foreign institutions. It is also possible to refer bonds to retail investors through the Catalyst market on the WSE.

* * * * * 

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