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Wednesday, October 9, 2024

What's the deal with loans for flood victims? The minister caused a storm. “Ruined local governments are supposed to get into debt?”

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“Once again about aid: every flood victim is entitled to immediate emergency aid of PLN 10,000, up to PLN 100,000 for renovation, up to PLN 200,000 for rebuilding a house, NON-REFUNDABLE. Other forms of aid will also be possible. Whoever lies in this matter harms the flood victims, not the government,” wrote Prime Minister Donald Tusk on the 10th.

The Prime Minister had to dispel doubts that appeared after the words of the Minister of Climate and Environment Paulina Hennig-Kloska, which were explained to her by the ministry. The PLN 100 million loan she spoke of is an offer for local governments. But let's take it one step at a time.

Watch the video The military in action in flood areas. Heroic help

What's the deal with loans for flood victims? They're actually for local governments

– We have prepared PLN 21 million for the most urgent needs in the first days of the fight. The fight against the element is still ongoing, so we will release the money “immediately” that will be allocated for: power generators, dehumidifiers and sandbags for the crisis management center – said the head of the Ministry of Climate and Environment on Monday.

The Ministry of Culture and Environment also announced that the government also wants to allocate about PLN 100 million for low-interest loans (at the level of 1.5% to 2.5%) to eliminate the effects of flooding. The money would be spent primarily on:

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  • Repair of sewage system
  • Repairing damage to sewage treatment plants
  • Repair of drinking water treatment plant
  • Elimination of damage at landfills
  • Elimination of damage in boiler rooms
  • Elimination of environmental contamination

This information was met with criticism from politicians and experts. During an interview on Radio ZET, Deputy Speaker of the Sejm Piotr Zgorzelski from PSL referred to Paulina Hennig-Kloska's announcement. – I don't believe it, I can't imagine offering a loan to people who have lost their life's possessions in the face of a national tragedy – the MP stated. In his opinion, such a proposal should not have been made at all.

On Tuesday, the Ministry of Climate issued a statement warning against false information about support. It was explained that the funds that Minister Hennig-Kloska spoke about are money that is to be transferred to municipalities affected by the flood and to volunteer fire departments. PLN 21 million are non-repayable loans.

In turn, PLN 100 million is a loan program from the resources of the Provincial Funds for Environmental Protection and Water Management. The ministry plans to launch it in Krakow, Katowice, Opole and Wrocław exclusively for local governments for the period of reconstruction after the flood damage – explained the spokesman for the Ministry of Environment, Hubert Różyk, quoted by energetyka24.com for PAP.

The ministry had to explain (in an alarmist tone about fake news) that there had been a misunderstanding regarding flood loans. But criticism was also expressed by people who understood from the beginning that the loans were intended for local governments.

LOANS for damage removal, i.e. NON-investment activity? Ruined local governments are still supposed to get into debt? Hennig-Kloska a huge mistake!

– wrote economist Jan Oleszczuk-Zygmuntowski on October 10.

Hubert Różyk from the Ministry of Culture and Environment reminded that the creation of a loan instrument at the disposal of local governments was recommended by the Supreme Audit Office in a report after the 2010 flood.

What support for flood victims?

Direct support for flood victims will be much greater than loans for local governments. The Prime Minister's Office has announced 1 billion złoty of support for citizens affected by the flood. This amount consists of non-refundable funds, which Donald Tusk mentioned in the entry cited at the beginning of the article.

Each victim will be able to contact their local government for immediate financial assistance in the amount of PLN 10,000, which the Prime Minister mentioned. This amount consists of PLN 8,000 based on the Social Assistance Act and PLN 2,000 flood benefit.



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