Gov't endorses new business relief package

The Polish government rubberstamped a new package of measures on Thursday intended to help Polish companies weather the coronavirus crisis and prevent hostile takeovers of Polish businesses whose valuation has dropped in the economic downturn.

The draft law includes support measures for local governments, facilitations for tender contractors and contracting authorities, government subsidies to interest on corporate loans, easier access to loan payment suspension and measures protecting companies whose valuations have dropped due to the economic crisis, the Development Ministry, which prepared the bill, has reported.

"Our main goal is to protect Polish companies, jobs and consumers against the negative effects of Covid-19," the ministry said in a press release.

The anti-takeover measures will remain in force for two years, and will also protect companies where the government holds a stake as well as those whose products are of strategic importance, the ministry added.

The protection will be given to companies whose revenue in Poland exceeded EUR 10 mln in any of the two financial years preceding the take-over intention, the ministry explained.

The subsidies to interest on bank loans will cost the Polish government up to PLN 565 mln (EUR 124 mln), which will help generate business loans worth about PLN 32 bln (EUR 7 bln), the ministry said.