Poland has deals to allocate 45% of its EU pandemic recovery funds, ministry says

WARSAW (Reuters) -Poland has signed agreements to distribute over 117 billion zlotys ($32 billion) of European Union pandemic recovery funds to local beneficiaries, 45% of the country's total allocation from Brussels, the Development Funds Ministry said on Monday.

EU Resilience and Recovery Funds are meant to boost member states' economies following the COVID-19 pandemic and Poland is counting on them to boost growth to 3.7% this year. Poland's allocation totals 255 billion zlotys and is split into grants and preferable loans.

"After one and a half years we have already contracted 117 billion zlotys. These investments are already happening," Development Funds Minister Katarzyna Pelczynska-Nalecz said during a press conference.

"(It's) 774,000 signed contracts. This gives you an idea of ​​how many beneficiaries there are, how big this project is," she added. The contracts include 66.5 billion zlotys in grants, 60%of the allocation, and close to 50.7 billion zlotys in loans, 33.5% of the allocation, according to the ministry data.

Poland has so far received 67 billion zlotys of the recovery funds under three payment requests and expects further 26.3 billion zlotys from a fourth and fifth request in August. The ministry plans two more payment requests this fall, one next spring and a ninth request in September 2026.

Last week, the European Commission extended the deadline for Poland to carry out investments under the programme till the end of 2026. It previously had run through August 2026.

($1 = 3.6829 zlotys)

(Reporting by Karol Badohal; Editing by Toby Chopra)