Established in 2018, the Export Credit Agency of Ukraine (ECA) actually started operating during the full-scale war. Support for exporters amounted to about UAH 100 million in 2018-2021, the ECA supported Ukrainian exports by UAH 3.2 billion in 2022. This was discussed during the event “Tools to Support Ukrainian Exporters” organized by EBA and GB4U with the participation of Ruslan Gashev, Acting Chairman of the ECA Board, Ruslan Rokhov, ECA Advisor, as well as representatives of partner banks.
Financing is the biggest need of Ukrainian exporters, especially during the war. Although the ECA does not lend directly to businesses, it acts as a bridge between companies and banks – a special type of insurer. The insurance contract with the ECA serves as a form of collateral loan, and since ECA programs can be combined with other government programs, such as the “Affordable Loans 5-7-9%”, it allows exporters to obtain low-interest loans without collateral.
Last year, 35 Ukrainian exporters used export credit under the ECA’s insurance coverage. Thanks to this support, nearly 1445 jobs were saved or created, and 1 hryvnia of ECA insurance liability generates 13 hryvnias of future exports.
The agency’s products include insurance of foreign economic contracts, insurance of pre-export financing, and insurance of bank guarantees.
Who can get a loan? 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 (you can check the compliance with the code using a special plug-in on the ECA website) and are not in bankruptcy can apply for insurance from the ECA.
The decision to grant a loan to fulfil an export contract is made directly by the bank. Loan agreements for up to UAH 20 million for a period of up to 1 year (portfolio insurance) are automatically confirmed by the agency. If a larger loan amount is required, the application is considered on an individual basis. The maximum amount of a possible loan under ECA insurance coverage is currently UAH 150 million.
What is the cost of insurance? The cost varies depending on the type of product, the rating of the importing country, etc. For example, the cost of portfolio insurance is currently 0.5% + VAT 0.1%. The cost of individual insurance can range from 2% to 2.5%.
Learn more about the cost of various insurance products, the conditions and the algorithm for applying to the ECA in the presentation “New opportunities for Ukrainian exporters”, as well as by contacting the ECA or partner banks.
The programs are implemented together with partner banks that have export credit programs using ECA instruments. Currently, these are four state-owned banks – Oschadbank, Ukrgasbank, UkrEXIMbank, PrivatBank, and a private bank – Kredobank. To learn more about the instruments and programs offered by the banks, please follow the link for the recording of the event.
We are grateful to the representatives of the abovementioned banks and the representatives of the Export Credit Agency of Ukraine (ECA) – Ruslan Gashev and Ruslan Rokhov – for presenting the agency’s products and opportunities for exporters. We are confident in further effective cooperation to stimulate the development of Ukrainian exports!