Financial sector news

The Government has expanded the capabilities of the ECA to insure investments against war risks

  • Source: Cabinet of Ministers of Ukraine

The Government of Ukraine has taken a significant step to support Ukrainian business and stimulate investment amid the war. The Cabinet of Ministers has amended the charter of the Export Credit Agency (ECA), which will allow it to insure investments in the creation of new facilities and infrastructure in the processing industry, as well as export assets, against military and political risks, the press service of the Cabinet of Ministers reports.

 "This is an important decision that will help Ukrainian companies gain access to the necessary resources to develop and expand their operations, even in times of war," said Prime Minister of Ukraine Denys Shmyhal.

Taras Melnychuk, representative of the government in the Verkhovna Rada, clarified that the government's decision has revised the charter of the Export Credit Agency.
"The company's task of protecting Ukrainian exporters from the risk of financial losses associated with investments in the creation of facilities and infrastructure necessary for the development of the processing industry and export of goods (works, services) of Ukrainian origin through insurance and reinsurance has been expanded," Melnychuk wrote on Telegram.

Earlier, in April 2024, the Cabinet of Ministers had already approved a list of military and political risks, as well as the procedure for their insurance by the ECA. This allowed the agency to start working with Ukrainian exporters, offering them insurance for investment loans and direct investment.
Thanks to the recent changes, ECA will be able to significantly expand its activities, providing Ukrainian companies with even more opportunities to develop and export their products.

"This is only the first step... The available capital of the ECA is enough to insure a certain amount of investments, but for the large-scale development of the program, an increase in the authorized capital will be required. In the future, we will work to expand the capabilities of the ECA and make it an even more effective tool to support the Ukrainian economy," added Dmytro Kysylevskyi, Deputy Chairman of the Parliamentary Committee on Economic Development.

Key points:

- The ECA will be able to insure investments in the creation of new facilities and infrastructure in the processing industry, as well as export assets.
- This will help Ukrainian companies access the necessary resources to develop and expand their operations, even in times of war.
- ECA will be able to attract international financial assistance to fulfill its new tasks.

The ECA is expected to start offering new insurance products in the second half of May 2024. Investment insurance against war risks is an important component of the state economic policy "Made in Ukraine". This step will help stimulate the development of the manufacturing industry and exports of Ukrainian goods.

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The mission of the Association of Ukrainian Banks is to support the development of the national banking system. The AUB cooperates with the Verkhovna Rada of Ukraine on improving the legislation governing banking activities, and interacts with the National Bank of Ukraine on regulatory support for the functioning of banks and non-bank financial institutions. The CBA takes care of the professional development of bank employees, expands international relations with associations and banking institutions of other countries.

 

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