Release date: July 15, 2020
The EBRD implemented a Solidarity Package on March 13th with €21 billion of new initiatives to provide finances, policy support, and investments for countries that they are partnered with until the end of 2021. The Solidary Package is dedicated to the response to and the recovery from the coronavirus pandemic.
Poland has been a member of the EBRD since 1991 through €10.5 billion investments during that span. The most recent investment was made of last week when the EBRD issued a €24 million loan to support the expansion of Poland's manufacturing company of Velvet Care.
Velvet Care is one of the leading manufacturing companies in Poland, specializing in producing hygienic products such as toilet paper, paper towels, and various tissue products since 2013. As with most businesses, Velvet Care has been adversely affected by the ongoing coronavirus pandemic.
The funding and investment for Velvet Care will seek to increase capacity for production in facilities through vertical integration, improve energy efficiency with the installation of a gas-fired co-generation plant, and spur expansion into more foreign markets among Europe. Velvet Care has already been an exporter of its goods to the Czech Republic, Hungary, Slovakia, and many other notable Central and Eastern European Countries. Expanding to more countries may improve performance and production for the company.
With the EBRD's involvement with Poland's economy and to Velvet Care, it hopes their investment will achieve two goals set for Poland. Which are to strengthen the competitiveness of the country's economy while concurrently promoting its green transition. With this ongoing pandemic in mind, the EBRD seems to have stepped in at the right time to continue its support for Poland to make certain specific sectors such as in manufacturing will be able to thrive and development. Investments and growth in Poland’s manufacturing industry and for hygienic production seems to have a bright future through the EBRD's investments.