On May 23, 2023, AmCham member companies met online with Oksana Ocheretiana, Board Member of the Export-Credit Agency (ECA), Ruslan Rokhov, ECA Advisor, and representatives of partner banks.
During the meeting participants discussed the available ECA’s products: insurance of pre-export financing, insurance of bank guarantees, and insurance of foreign economic contracts. The insurance contract with the ECA serves as a form of collateral loan, and ECA programs can be combined with other state programs, such as the “Affordable Loans 5-7-9%”, therefore it allows exporters to obtain low-interest loans without collateral.
The decision to grant a loan to fulfil an export contract is made directly by the bank. Not only partner banks may participate in the process. Loan agreements for up to UAH 20 million for the period of up to 1 year are automatically confirmed by the ECA. If a larger loan amount is required, the application is considered on a case-by-case basis. The maximum amount of a possible loan granted under ECA insurance coverage is currently UAH 210 million.
The cost of insurance depends on the type of product, the rating of the importing country, etc. For instance, the cost of portfolio insurance is currently 0.5% + VAT 0.1%. The cost of individual insurance can range from 1.2% to 1.8%.
Entrepreneurs – residents of Ukraine who export goods/services of Ukrainian origin under certain commodity groups according to the Ukrainian Classification of Goods for Foreign Economic Activity (UCGFEA) and are not in bankruptcy may apply for insurance from ECA. Use a special plug-in on the ECA website to check out the compliance with the code of UCGFEA.
As a follow-up, we would like to share with you the presentation delivered by Mr. Rokhov.
We are grateful to Ms. Ocheretiana, Mr. Rokhov, and the banks’ representatives for presenting the ECA’s products and opportunities for exporters.
