In July 2023, the Export Credit Agency (ECA) set a new milestone in supporting Ukrainian exporters by insuring their obligations under loans issued for the execution of foreign economic contracts totaling UAH 1.035 billion. According to the ECA website, the amount of financing provided amounted to UAH 85.9 million.
Among the insured loans in July 2023, almost UAH 80 million were portfolio loans. The largest of them were issued in Kyiv (UAH 20 million), Ivano-Frankivsk (UAH 19.9 million), and Dnipro (UAH 19.4 million) regions.
It is also noted that as of August 1, 2023, the ECA supported exports of more than UAH 6.2 billion by insuring loan agreements in the amount of UAH 815.4 million.
The leaders in terms of the amount of insured loans are Oschadbank (UAH 256.3 million), Ukrgasbank (UAH 229 million) and Raiffeisen Bank (UAH 210 million). They are also the first in terms of the volume of supported exports (UAH 3.22 billion, UAH 1.51 billion and UAH 0.6 billion, respectively).
PJSC Export Credit Agency is a government-authorized agency that supports and promotes the export of Ukrainian goods (works, services). The ECA protects Ukrainian exporters from the risk of non-payment and financial losses associated with the fulfillment of foreign trade contracts.
Ruslan Gashev, Head of the Export Credit Agency (ECA), announced at the Summit of Exporters held by Forbes Ukraine in Kyiv that in 2022 it supported 35 exporters for UAH 3.18 billion and is ready to increase export support up to UAH 18 billion this year.
He pointed out that the agency is capable of such volume of activities without increasing the nominal capital.
Gashev also announced that in the nearest future the number of Ukrainian banks-partners to ECA under the program of portfolio credit insurance will increase from six to seven.
According to the head of the agency, the ECA may also become a tool of activity in Ukraine for the Multilateral Investment Guarantee Agency (MIGA) from the World Bank Group and the U.S. Corporation for International Development Finance (DFC), which do not have their own representative offices in Ukraine.
“Even in those projects where MIGA and DFC risk insurance will be involved, we can be their ‘hands’ because they do not have their own offices in Ukraine,” Gashev explained.
He clarified that this issue has already been discussed with the DFC, and the ECA has sent its proposal, while the Ministry of Economy is still working with MIGA without the agency’s participation.
The head of ECA also supported the initiative contained in the draft law “On Amendments to the Law on Financial Mechanisms to Encourage Export Activities in relation to Investment Insurance against Military Risks in Ukraine” (#9015) to expand the ECA’s mandate to insure investments in Ukraine.
“When we approach our foreign partners, especially such structures as MIGA and DFC, to insure Ukrainian and foreign investments in Ukraine, we also have to think about how to use the tools we have in the country,” Gashev said.
He stressed that we are talking about insurance not only of foreign investments, but also domestic ones. According to him, the document has not been introduced at the meeting of the Profile Committee, but it is being worked on.
Since the beginning of the year (as of March 13) ECA has supported export from Ukraine in the amount of 242.35 million UAH (11 agreements). Banks financed UAH 43.5 million. Exports were made to France, Germany, Latvia, Poland, Switzerland, and the USA. The leaders among the branches according to the results of two months of 2023 are furniture industry, the second place is taken by toys and further by rubber, rubber and rubber goods.
Export Credit Agency (ECA) and state export credit agency of Slovakia Eximbanka SR signed a memorandum of understanding that defines main principles of cooperation between them in promoting export of goods and services of Ukraine and Slovakia, ECA website reports.
“By signing the Memorandum of Understanding, we are laying the groundwork for further unlocking trade and investment potential between our neighboring countries in the current difficult times. From the point of view of Eximbanka SR, the memorandum of understanding is a new impetus for a deepened partnership and strengthens our confidence in continuing cooperation in the form of concrete projects of mutual interest,” commented the event in Slovak Eximbanka SR.
According to the report, according to the State Statistics Service of Ukraine, the total trade turnover of Ukraine with Slovakia to full-scale military operations on the territory of Ukraine in 2021 was $1.84 billion. Ukraine had a positive balance in trade with Slovakia: the volume of exports was $0.93 billion while imports were $0.91 billion. Ukraine’s share of Slovakia’s imports was 0.9%.
“In 2021, we saw our trade volume grow by 20.8% ($332.2 million). Unfortunately, raw materials still remain the main export items from Ukraine to Slovakia,” notes Oksana Ocheretyana, a member of the ECA board.
These are, particularly, sales of ores, slags and ashes – 47.8% ($539.6 million), ferrous metals – 8.8% ($87.7 million), wood and wood products – 4.2% ($41.5 million).
“ECA’s task is to change that,” Ocheretianna stressed.
According to her, the Slovak market has demand for Ukrainian electric cars (in 2021, it increased its purchases by 33.1% to $90.8 million), railway locomotives (Ukrainian exports in this commodity group grew by 22.8% in 2021 to $17.1 million), Ukrainian furniture (presence of furniture manufacturers in the Slovak market during this period increased almost twice and the export volume was $9.8 million).
“Exporters of all these commodity groups can be supported by ECA within the framework of current products of the company”, says a member of ECA board.
Eximbanka SR is a state export credit agency of Slovakia, established in 1997 to promote export activities of Slovak businesses. Eximbanka SR offers a wide range of financial products: financing, credit insurance for exporters, guarantees.
As earlier reported, the ECA was established to promote export of goods (works, services) of Ukrainian origin and support exporters who are residents of Ukraine through insurance, reinsurance and provision of guarantees under contracts ensuring export development.
From January 7, 2023 the National Bank was authorized to regulate the activities of the Export Credit Agency, which has to bring it in line with the requirements established by the decree and submit documents for obtaining a license until July 7, 2023, in the manner prescribed by the regulator.
