Country for PR: United Kingdom
Contributor: PR Newswire Europe
Saturday, October 17 2020 - 02:16
BGK agrees with IMF report: "Infrastructure investment is a key priority for the CESEE region to accelerate convergence toward the EU15"
WARSAW, Poland, Oct. 16, 2020 /PRNewswire-AsiaNet/--

Infrastructure investment is a key priority for Countries in Central, Eastern, 
and Southern Europe (CESEE) to accelerate the convergence of the living 
standards toward the level of the more advance European countries, the EU15 – 
says the IMF report published on 28th Sep 2020. IMF highlights the Three Seas 
Initiative Investment Fund (3SIIF) as an initiative with the "aim to address 
infrastructure needs in CESEE."

The report estimates that closing 50% of the infrastructure gap until 2030 
would require an annual investment of 3-8% of GDP. Attracting private investors 
should be an important step towards achieving this ambitious challenge.

To engage investors, the state development bank of Poland, Bank Gospodarstwa 
Krajowego (BGK), took the initiative to establish the Three Seas Initiative 
Investment Fund (3SIIF). In the report, the IMF mentions the Three Seas Fund as 
one of "the several initiatives aim to address infrastructure needs in CESEE".

"The Three Seas Fund is the economic dimension of the Three Seas Initiative. 
The Fund is the most important financial undertaking in Central and Eastern 
Europe. We set a clear goal for the Fund - financial support for infrastructure 
investments in the region. Such support is especially important these days as 
economies struggle with the effects of the COVID pandemic. The initiator and 
co-founder of the Fund is the Polish development bank BGK. We established the 
Fund together with our partners from the Romanian development bank EximBank" – 
says Beata Daszyñska-Muzyczka, the 3SIIF Supervisory Board Chairperson and BGK 

The Three Seas Fund's main objective is to invest in transport, energy and 
digital infrastructure on the north-south axis in the Three Seas countries and 
to offset the regional development differences in the European Union. The Fund 
is a commercial and market-driven initiative that will grant a diversified 
investment and an attractive return.

The IMF team also state that, if done right, infrastructure investment could 
yield significant dividends in the region. More and better public investment 
can help repair the economic damage of the pandemic, raise potential output, 
and speed income convergence with the EU15.

"At this time of economic slowdown, its benefits could be even larger. We 
estimate that for each percent of GDP spent on infrastructure, the output could 
rise by 0,5-0,75% in the short run and by 2-2,5% in the long run" – the report 

See full IMF report here: 

Visit the 3SIIF website here: 

Contact with BGK press office: 
Bank Gospodarstwa Krajowego
Anna Czy, tel. +48609220208,

Source: Bank Gospodarstwa Krajowego (BGK)