“DGP”: KPO will start without KPO. PiS does not want to wait for the first payments from the EU, sucks billions from companies

The National Reconstruction Plan was approved by EU finance ministers after almost a year of delay last week. Under the KPO scheme, Poland is to receive EUR 23.9 billion in subsidies and EUR 11.5 billion in cheap loans. This is the equivalent of PLN 165 billion.

So far, however, Poland has not received any funds. It is possible, however, that the KPO will start before Brussels makes the transfer. As stated by “Dziennik Gazeta Prawna” on Tuesday, the Council of Ministers is to adopt a resolution that will allow the KPO to be financed with domestic money. The government, according to the representative quoted by the daily, wants to allocate PLN 7 million for this purpose.

KPO will start without EU money? The government has an idea for media success

The money to start KPO would come from the returned anti-covid shields, which in turn go to the account of the Polish Development Fund. The president of PFR, Paweł Borys, suggests that thanks to money from Polish companies, the expenses could be even higher. – Thanks to the returns from shields, we currently have approx. PLN 10 billion. In the next year it will be as much as PLN 15 billion – said Borys.

In the first place, the “Toddler Plus” program, which provides for the creation of childcare places, would be launched as part of the “national KPO”. The funds are also to support the “Clean Air” project – reports “DGP”.

The government is financing debt with debt. Money for shields from bonds that need to be paid back

What is the difference between national and EU KPO? Brussels will give us most of the money in the form of non-repayable loans. And those that will be payable have a symbolic interest.

Meanwhile, the billions that the government allocated to anti-covid shields do not come from savings, but from bonds issued by Bank Gospodarstwa Krajowego. Moreover, the resulting debt is not included in the budget deficit. The government may, therefore, cram hundreds of billions of zlotys in loans into BGK, which will have to be returned and convince citizens that the state budget is doing great. However, Polish debt is clearly visible in Brussels, because the EU methodology for calculating debt is different. It includes funds “crammed” in BGK or PFR.

So why does the government want to launch a KPO without a KPO? Perhaps to convince some of the citizens that they are doing well without the EU. By financing 7 percent. program with money that could be used to pay off the debt. This is how the government finances the debt with another debt.