Ukreximbank (Kyiv) and China Export and Credit Insurance Corporation (Sinosure) on April 17 signed a framework agreement on cooperation in Kyiv, a press release from the bank said. The agreement foresees that Sinosure will provide insurance support for those projects for the which applications were filed through Ukreximbank and contracts were concluded by Chinese enterprises in Ukraine. In particular, the matter concerns the implementation of construction projects in Ukraine and other countries, in which Ukreximbank is involved, as well as projects in the field of infrastructure, agriculture, energy, transportation, oil, gas and chemical industries.
The total limit of Sinosure financial insurance for use by Ukreximbank will be $500 million. The loan term will be set depending on the parameters of each contract and could reach 15 years, the report said.
“An agreement on cooperation for the first time signed between the Ukrainian bank and China Export and Credit Insurance Corporation is a landmark event, as it opens up great potential for expanding external financing channels for the key sectors of the national economy,” the press service of Ukreximbank said, citing chairman of the bank board Oleksandr Hrytsenko.
Sinosure is the official export credit agency of China, founded in 2001. Sinosure is the only state-financed insurance organization.
AGREEMENT, CHINA, COOPERATION, EXPORT-CREDIT, INSURANCE CORPORATION, UKREXIMBANK
The Export-Credit Agency could start operating in the fourth quarter of 2018 only if the budget for 2018 is reviewed and the financing is expanded by UAH 80 million, First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has said.
“To take legal and organizational measures [to start the Export-Credit Agency], an additional amount of UAH 80 million is required… We insist in the past six months that the specified amount is provided for in the budget amendments for 2018,” he told the press conference on Tuesday, answering a question of Interfax-Ukraine.
He also recalled that the national budget for the current year provides funding of UAH 200 million to the Export-Credit Agency. Earlier, the Ministry of Economic Development and Trade estimated the need for additional financing at UAH 146 million.
Former Ukraine’s trade representative Natalia Mykolska earlier said that she expects that first pilot products of the Export-Credit Agency will be seen at the end of 2018.
