Anti-Crisis Shield 4.0 now in force

Shield 4.0, the latest legislative package intended to counter the adverse economic effects of the Covid-19 pandemic, has now been effectively enacted. It includes solutions such as subsidies towards interest on loans taken out by companies afflicted by the crisis, fast-track restructuring proceedings, extensive powers enabling the Polish antitrust authority to block take-overs, facilitations for employers, and less-than-favourable rules affecting employees.

The legislative Act of 19 June 2020 regarding subsidies towards interest on bank credit facilities extended to ensure financial liquidity for enterprises afflicted by the effects of Covid-19 and amendment of certain other acts, better known as the Anti-Crisis Shield 4.0, was published in the Journal of Laws (under item 1086) on 23 June. Most of its provisions shall become effective and enforceable forthwith, starting Wednesday, 24 June.

In accordance with our projections shared with Prawo.pl readers in late April, Shield 4.0 includes changes affecting large businesses as well as small ones. The areas affected include corporate take-overs, simplified restructuring proceedings, public procurement, and employment relationships. Private individuals repaying CHF-denominated loans benefit from repayment holidays, and local self-government authorities – from financial support. The legislative process brought numerous adjustments to the original draft of the Act (some of them quite significant), both in the lower and the upper house of parliament. As a result, creditors will benefit from stronger safeguards in the context of simplified restructuring proceedings, UOKiK – the Polish antitrust authority – will have less (…)

The full text of this article (in Polish) is available on www.prawo.pl