Gov't aid saved companies during pandemic - PFR head

In the opinion of the PFR head, now "it is important to skilfully design the state's exit from this scale of public aid". Piotr Nowak/PAP

State aid programmes for micro, SME and large companies during the pandemic stabilised their financial situation, the president of the Polish Development Fund (PFR) has said.

"I am convinced that through the Financial Shield (the Polish state aid – PAP), first of all, we treated not the symptoms, but the causes. The consequences of closing the economy… is the deterioration of the financial situation of enterprises, the risk of layoffs and, as a result, an increase in debt," Paweł Borys said during the Congress 590 in Warsaw.

"What the state did was to give companies a financial injection, which was supposed to, among others, compensate for these losses and keep jobs," he explained.

In the opinion of the PFR head, now "it is important to skilfully design the state's exit from this scale of public aid". He added it should take place not too soon, but should happen this year, so "that zombie companies do not really arise," he said.

Borys said that in some Western European countries such a risk exists, because there most of the aid was in the form of loans. "In Poland, we have a larger non-returnable part," he added.

The PFR president emphasised that Polish companies, due to the fact that the majority of loans were non-returnable, in the vast majority have a chance - after the crisis - to be in a healthy financial situation.