South Korea is overtaking Italy and Switzerland in investments in Poland.
South Korea has jumped into the top ten largest direct investors in Poland – according to new data from the National Bank of Poland. At the end of last year the involvement of Korean companies amounted to PLN 30.5 billion. During the year it increased by almost PLN 12 billion.
Korea’s strong position is due to investments such as the electric car battery factory located near Wrocław. The sales of batteries have recently become one of the main drivers of growth in all Polish exports.
Pursuant to Art. 7 (2) of the Act on package travel and linked travel arrangements, there is an obligation to conclude an insurance contract in a specific amount. This provision provides that statutory obligations are fulfilled by tour operators and entrepreneurs facilitating linked travel arrangements by:
1) conclusion of a bank guarantee or an insurance guarantee in accordance with the template form and the provisions specifying the minimum amount of the guarantee sum or
2) conclusion of an insurance contract for travelers inaccordance with the form template and the provisions specifying the minimum amount of the sum insured, or
3) concluding a contract for a travel escrow account in accordance with the model of this contract and accepting travellers’ payments only to this account, if they provide package travel or facilitate the purchase of linked travel arrangements provided only on the territory of the Republic of Poland;
4) making timely payments of contributions in the due amount to the Tourist Guarantee Fund.
PPP is a legal institution introduced into the Polish legal order in 2008 by the Public-Private Partnership Act, which regulates the issues discussed below. To put it simply, a public-private partnership consists in the joint implementation of a project by a private partner and a public entity. It is based on a long-term agreement (which is concluded for 30 or longer) specifying the division of tasks and risks between the two cooperating parties.
Sukuk is a financial bond that complies with Islamic religious law commonly known as Sharia. The traditional Western interest-paying bond structure is prohibited in the Islamic law because the riba, or interest debt, goes against precepts of Islam. Therefore, the Islamic countries and investors need a structure to link the returns and cash flows of debt financing to a specific asset being purchased, effectively distributing the benefits of that asset. In order to do that, in Malaysia, the sukuk was created twenty three years ago and, since then, it has become extremely popular in Islamic finance.
Sukuk represents aggregate and undivided shares of ownership in a tangible asset as it relates to a specific project or a specific investment activity. An investor in sukuk, therefore, does not own a debt obligation owed by the bond issuer, but instead owns a piece of the asset that’s linked to the investment. This means that sukuk holders, unlike bond holders, receive a portion of the earnings generated by the associated asset. Hence, financing can only be raised for identifiable asset, this means an asset whose commercial value can be measured.
