Local Government & National Health Authorities

We offer financing to health-sector and local-government bodies in Central and Eastern Europe.

Lending Products


BFF Banking Group provides the public-sector body with financing in cash up to a certain threshold. The financing may be used to meet both liquidity and investment needs; it also makes it possible to consolidate and restructure current credit liabilities, and is often used by clients as a form of bridge financing. Loans are offered to local self-government units, municipal organisations and hospitals.

The schedule of disbursement and repayment is agreed on a case-by-case basis with the client and is adjusted to match the investment made. A flexible form of financial security, with these loans more often than not a simple blank bill of exchange is used as security.

Main features: 

  • Standard product financing for any objective: investment / restructuring /  consolidation 
  • Potential to obtain bridge financing
  • Long-term financing – the repayment schedule is tailored to the client’s needs; the loan may be disbursed to the client on a one-off basis or in tranches 
  • Option for a grace period for repayment of the capital


  • Tailored financing structure
  • Potential to finance 100% of gross investment value
  • Flexible repayment schedule in line with the client’s cash flow 
  • Financial support on investment projects in the form of bridge financing and financing of the client’s own contribution to co-financed investments



We offer a financial instrument whereby the issuer of bonds (local self-government unit or municipal organisation) obtains financing for any purpose. The issuer of the bonds adjusts the repayment schedule (bond redemption schedule) to match the financial needs of the local self-government unit.

BFF Banking Group is an experienced and highly active player in the market for the financing of self-government units through bonds.

Main features:

  • Ease of obtaining long-term financing with a schedule of bond redemption tailored to meet the needs of the local self-government unit
  • Commonly used to finance investments, deficit financing and the consolidation of existing debt on the part of local self-government units
  • Support of an expert team and experienced brokerage houses in planning bond issues
  • Market regulated by the relevant legislation on the public trading of securities, with supervision by the Polish Financial Oversight Authority; the National Depository for Securities keeps a register of issued bonds


  • Long-term grace period
  • Potential for price negotiation with offering party
  • Flexible repayment schedule in line with WPF
  • Long-term maturity (depending on the financial standing of the bond issuer)
  • No public procurement required



An overdraft is a financing solution in the form of a loan. Up to the overdraft limit, the client receives funds that can be freely used and freely repaid during the term of the agreement, and covers only the interest on the monthly usage limit. We offer overdrafts to local self-government units, municipal organisations and hospitals.

Main features:

  • Limit set on a case-by-case basis
  • Agreement lasts for up to 12 months, with the option to renew for subsequent periods
  • No limitation on the use of the funds up to the agreed limit – the client decides when and how to use the financing
  • Costs clearly defined in advance
  • Interest rate calculated on the basis of the actual amount and the period of use
  • Collateral: blank bill of exchange


  • Rapid access to funds – in a situation of temporary shortage of funds, the client applies for financing to settle other liabilities in a timely manner, with the client deciding how and when to deploy the funds
  • Optimisation of interest rates through flexible limit management
  • Excellent tool for supporting the client’s liquidity management



With the client’s consent, BFF Banking Group repays the debt as specified by the client (adding the creditor’s rights to the amount paid). With the client, BFF then works out a new schedule and new financial terms for the repayment of the outstanding debt. 

Main features:

  • The consent of the founding body to change the creditor (in the case of SP ZOZ) is required
  • The repayment may only relate to matured obligations, unless the creditor agrees to repay other obligations
  • Under the agreement, the repayment may not apply to public-law liabilities, i.e. tax
  • Repayment is made directly to the creditor’s account
  • BFF Banking Group signs an agreement with the client setting out a new repayment schedule and new financial terms


  • As a tool to support the restructuring of the client’s liabilities, the agreement defines a new repayment schedule tailored to the client’s needs
  • The subrogation does not constitute a new commitment
  • A matured liability is exchanged for an unmatured liability, to be repaid in long-term instalments
  • The client can avoid unnecessary costs, such as those for court proceedings



Co-debtorship sees agreements being reached between the BFF Banking Group and the client whereby BFF becomes a co-debtor and settles the liabilities. This solution allows LGUs to pay OPEX on longer repayment schedules, and it is also used to finance smaller investments or overdue operating expenses.


  • This product is used to cover liquidity gaps relating to the supply of goods or services to local governments, municipal organisations or healthcare providers
  • A value-add for clients is the option to agree on a long-term repayment schedule with BFF – an option that would not be available from the initial creditor