As of May 26, the Export Credit Agency has already supported merchandise exports worth UAH 1.24 billion. At the same time, the ECA’s insurance liability amounted to UAH 312.07 million. This means that each hryvnia of export support provided through the ECA in 2023 will potentially generate UAH 3.97 in foreign exchange earnings.
In total, the amount of exports supported under the ECA product portfolio reached UAH 4.43 billion. Of this amount, UAH 4.31 billion is the amount of exports supported jointly with partner banks:
– Under the portfolio insurance of export credits of ECA’s partner banks, loans worth UAH 286.188 million were issued for the execution of foreign economic contracts (FECs) worth UAH 1.271 million;
– Under individual export credit insurance, UAH 304.27 million was issued for the execution of foreign economic contracts worth UAH 3.086 billion;
– Exporters also insured the financial risks of foreign economic contracts in the amount of UAH 68.6 million.
“The successful operation of the Export Credit Agency proves that this tool can be very effective in wartime if the legal framework meets the requirements of the moment. We at the Ministry of Economy are ready to continue to respond as quickly as possible to the requests of businesses that need state support and assistance, and to create new opportunities for economic recovery,” commented Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy, on the results of the ECA’s work.
It is important to note that the main beneficiaries of the state’s support for exporters through the ECA are small and medium-sized businesses.
In particular, the share of loans issued for the execution of an export contract under ECA insurance coverage for small businesses in the structure of the banks’ loan portfolio is 84.31%, for medium-sized businesses – 9.8% and 5.88% for micro enterprises.
At the same time, 71% of such loans are in the range of UAH 1 million to UAH 5 million. Another 20.34% exceed the sum of UAH 5 million and 8.47% are loans of up to UAH 1 million.
“This year, three banks have already joined the list of our partner banks in the export credit portfolio insurance programme: Kredobank, Privatbank and FUIB, and several others have started using our coverage for individual loans for the execution of export transactions. I am confident that we will be able to support the next billion of exports in an even shorter time,” said Ruslan Gashev, Acting Chairman of the Board of ECA. (Government portal/Business World Magazine)
