Conclusion of a non-revolving subordinated loan agreement in the amount of PLN 2.3 billion by the Bank with BNP Paribas S.A., a French joint-stock company (société anonyme) based in Paris. The loan was granted for the period of 10 years from the date of its disbursement, and its interest rate was determined based on WIBOR 3M plus a margin. The financial terms of the Agreement do not deviate from market conditions.
An agreement with trade unions on the principles of group redundancies
On 18 December 2020 the negotiations with the trade unions operating at the Bank were finalized and the Agreement on the principles of group redundancies was concluded („Agreement”). The parties to the Agreement agreed that the group redundancies will be carried out in the period from 1 January 2021 to 31 December 2023 and will comprise no more than 800 Bank employees, and also, among others, the criteria for selecting employees whose employment contracts will be terminated as part of group redundancies, the conditions of employees' participation in the voluntary departure program and the benefits to which employees covered by the group lay-offs will be entitled, including: severance pay, additional compensation, medical care and outplacement program.
The Bank estimates the amount of the restructuring provision for costs related to group redundancies at approximately PLN 41.4 million. This provision was charged to the Bank’s results in the fourth quarter of 2020.
PFSA’s decisions related to consent to include PLN 2.3 billion of funds under the subordinated loan as an instrument in the Bank’s Tier II capital.