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Annual report of the Bank Guarantee Fund
2020
6.1 Rules for the Fund’s support
and restructuring activities
Pursuant to the BFG Act, in the field of the restructuring credit unions at risk of insolvency, the Fund is responsible for::
granting repayable financial aid,
purchasing debts of credit unions,
providing support to entities taking over credit unions, taking over certain property rights or selected liabilities of credit
unions, or to purchaser of the enterprise of a credit union in liquidation, the organised part thereof or certain property
rights.
Financial aid in the form of loans, guarantees and sureties may be granted to a credit union that implements a recovery
programme positively evaluated by the KNF. Financial aid may be earmarked only for removing the threat of insolvency.
The Fund grants aid provided that, in particular:
the Fund’s Management Board recognises the results of an audit of the financial statements presented by a credit
union requesting aid as regards its activities,
the credit union presents a positive opinion of the KNF on the recovery programme,
the credit union demonstrates that the amount of the aid requested by the credit union would be not higher than the
total amount covered deposits in that credit union, calculated as the sum of covered deposits on the accounts of the
credit union’s depositors,
the credit union requesting aid uses its existing own funds to cover losses,
in the case of repayable financial aid, securing claims on account of the aid granted to guarantee the repayment of the
full aid amount with interest thereon.
The Fund must consult measures taken as part of the restructuring as well as obligations imposed on a credit union with
the KNF.
Financial aid may be granted provided that it is consistent with the state aid scheme in force or provided that the applicant,
i.e. the credit union, obtains a positive decision from the European Commission on granting aid within the individual aid
notification process.
The Fund may also grant aid in the form of purchasingclaims of credit unions at risk of insolvency. At the same time,
according to the Regulation of the Minister of Development and Finance of 1 December 2016 on trading by the Bank
Guarantee Fund in receivables purchased from cooperative savings and credit unions in which the risk of insolvency
has arisen (Journal of Laws 2016, item 1969), these can be only undue claims resulting from loans and credits granted,
classified by credit unions in the “regular” category, for which there are no delays in repayment and the economic and
financial situation of the debtor does not pose a threat to further timely repayment of the debt.
Contents
Annual report of the Bank Guarantee Fund
2020
6.1 Rules for the Fund’s support
and restructuring activities
Pursuant to the BFG Act, in the field of the restructuring credit unions at risk of insolvency, the Fund is responsible for::
granting repayable financial aid,
purchasing debts of credit unions,
providing support to entities taking over credit unions, taking over certain property rights or selected liabilities of credit
unions, or to purchaser of the enterprise of a credit union in liquidation, the organised part thereof or certain property
rights.
Financial aid in the form of loans, guarantees and sureties may be granted to a credit union that implements a recovery
programme positively evaluated by the KNF. Financial aid may be earmarked only for removing the threat of insolvency.
The Fund grants aid provided that, in particular:
the Fund’s Management Board recognises the results of an audit of the financial statements presented by a credit
union requesting aid as regards its activities,
the credit union presents a positive opinion of the KNF on the recovery programme,
the credit union demonstrates that the amount of the aid requested by the credit union would be not higher than the
total amount covered deposits in that credit union, calculated as the sum of covered deposits on the accounts of the
credit union’s depositors,
the credit union requesting aid uses its existing own funds to cover losses,
in the case of repayable financial aid, securing claims on account of the aid granted to guarantee the repayment of the
full aid amount with interest thereon.
The Fund must consult measures taken as part of the restructuring as well as obligations imposed on a credit union with
the KNF.
Financial aid may be granted provided that it is consistent with the state aid scheme in force or provided that the applicant,
i.e. the credit union, obtains a positive decision from the European Commission on granting aid within the individual aid
notification process.
The Fund may also grant aid in the form of purchasingclaims of credit unions at risk of insolvency. At the same time,
according to the Regulation of the Minister of Development and Finance of 1 December 2016 on trading by the Bank
Guarantee Fund in receivables purchased from cooperative savings and credit unions in which the risk of insolvency
has arisen (Journal of Laws 2016, item 1969), these can be only undue claims resulting from loans and credits granted,
classified by credit unions in the “regular” category, for which there are no delays in repayment and the economic and
financial situation of the debtor does not pose a threat to further timely repayment of the debt.
Contents
