The Polish Sejm passed an amendment allowing the Industrial Development Agency (ARP) to provide loans to coal company JSW and chemical group Azoty, aiming to bolster their financial stability.
Financial Aid for Key Industries Approved
The Polish Sejm on Friday approved an amendment to the system of development institution law, enabling the Agency for Industrial Development (ARP) to grant loans to mining enterprises and other companies of significant importance to the national economy. The legislation was proposed by Civic Coalition (KO) lawmakers.
The bill passed with 440 votes in favor, no votes against, and no abstentions. It will now proceed to the Senate for further consideration.
Rationale Behind the Legislation
Proponents of the amendment emphasize the need to provide financial assistance to Jastrzębska Spółka Węglowa (JSW) and Grupa Azoty, both facing liquidity challenges. Krzysztof Gadowski (KO) explained that many companies, including JSW and Azoty, are experiencing financial strain and require immediate support to meet payroll and debt obligations.
Loan Conditions and Restrictions
The loans will be intended for company reorganization aimed at reducing costs or optimizing operations. However, the loan’s purpose cannot duplicate existing public support mechanisms. The ARP will assess the borrower’s ability to repay based on a submitted restructuring plan.
Eligible Companies Defined
The law specifies eligible companies, including mining enterprises, those involved in mine closures, and companies deemed of “significant importance to the national economy or its sector as indicated in government strategic documents.”
Government Funding Not Directly Involved
Gadowski stressed that the amendment does not involve direct financial contributions from the state budget, but rather provides the ARP with an additional instrument to utilize.
JSW’s Financial Situation and Restructuring
JSW management previously warned of potential liquidity issues in March without implementing anti-crisis measures. The company subsequently developed a business restructuring plan to reduce costs and simplify its structure. JSW was also brought under the provisions of the law on the functioning of hard coal mining, enabling funding for voluntary departures.
Recent Agreements to Improve JSW’s Finances
JSW reached an agreement with trade unions in February to reduce labor costs. In March, ARP acquired two JSW subsidiaries – Przedsiębiorstwo Budowy Szybów and Jastrzębskie Zakłady Remontowe – for over 1 billion złoty, with the funds intended to support JSW’s liquidity.
Grupa Azoty’s Debt and Restructuring Efforts
Grupa Azoty is also undertaking measures to improve its financial position. As of the end of the third quarter of 2025, the company had a total debt of 4.3 billion złoty. In March, the general meeting approved a capital increase on the recommendation of the State Treasury.
The company also signed an agreement on April 1st to sell its GA Polyolefins subsidiary to Orlen, which is implementing the Polimery Police investment. This transaction will help finance the subsidiary’s debt and other obligations. Grupa Azoty is currently negotiating with financial institutions regarding debt restructuring.
Company Profiles
JSW is the largest producer of high-quality coking coal in the EU and a leading producer of coke used for steel production. It operates four mines: Borynia-Zofiówka, Budryk, Knurów-Szczygłowice, and Pniówek. The company is listed on the Warsaw Stock Exchange.
Grupa Azoty is the second-largest producer of nitrogen and multi-component fertilizers in the EU. It is the only melamine producer in Poland and also manufactures products such as polyamide, OXO alcohols, plasticizers, and titanium dioxide. The State Treasury holds a 33% stake in Grupa Azoty.
