The European Investment Bank (EIB) has decided to provide an intermediated loan to Bank Gospodarstwa Krajowego (BGK) in Poland.

Worth a total of €50 million, the support is intended to assist small and medium-sized enterprises (SMEs) in the country and could generate new jobs.

According to the European Union (EU) institution, the cash will fund projects in a range of sectors such as education, tourism, environment and health that are led by smaller companies and local authorities.

EIB vice-president Marta Gajecka remarked that the financial support will assist organizations "to increase the productivity and competitive capacity of SMEs and implement priority infrastructure projects".

Providing an array of financial assistance to EU member states in order to improve development, integration, economic and social cohesion, the EIB has been engaged in loan contracts with Poland since 1990.

With a population of around 38.5 million, Poland is an EU nation with an economy and jobs market that has grown strongly in recent years.