On the occasion of the Ukraine Recovery Conference taking place in Berlin leading export credit agencies and investment insurers signed a Memorandum of Understanding on Cooperation for the support of Ukraine.
EIFO is well underway in providing export credits to and investment guarantees in Ukraine. It makes a difference in the reconstruction of Ukraine and to Danish businesses. Therefore, EIFO also welcomes the agreement, as increased presence and cooperation with other countries' export credit agencies will be able to support finding solutions to challenges in the market and hopefully also to share risks in activities.
"There are fantastic big perspectives in what the ECA’s can offer in Ukraine together with the business community, so I look forward to a closer and committed collaboration. Here and now it's about helping Ukraine to rebuild and keep the economy going. But potentially also a huge business adventure awaits for the companies that already have ties to Ukraine when the war ends one day" says Mathias Secher, head of the Ukraine Foundation in EIFO.
The Memorandum aims to intensify bilateral trade and Danish investment in Ukraine and thereby support Ukraine's reconstruction. Ukraine is to be promoted internationally as an attractive trade and investment partner. Through the Memorandum, the signatories underscore their ambition to pioneer the economic, social, infrastructural, and ecological reconstruction of Ukraine.
The first signatories are Atradius Dutch State Business (Netherlands), EDC (Canada), EGAP (Czech Republic), EKN (Sweden), Euler Hermes (Germany), EIFO (Denmark), Finnvera (Finland), KUKE (Poland), PricewaterhouseCoopers (Germany), NEXI (Japan), SACE (Italy), UKEF (UK) and US-EXIM (USA).
Important instrument
Export credits are an instrument that, based on the Ukrainian buyer's needs for new machinery/equipment in the operation of their business, ensures a financing solution for the suppliers chosen by the Ukrainian buyer.
Investment guarantees ensure that foreign private investors can maintain and develop their activities in Ukraine, thereby ensuring a flow of FDI (Foreign Direct Investments) into Ukraine.
The Signatories have agreed to continue their support for Ukraine through joint cooperation and to establish a format for exchanging experiences.
The Memorandum's operational focus is on facilitating contact between experts and practitioners from the respective institutions. The aim is to exploit existing flexibilities in cover policy, optimize funding instruments based on best-practice solutions, and share risks among the participants of the Memorandum. They expect the funding instruments to be substantially strengthened for the benefit of Ukraine.
The first signatories call for more countries to join the support network for Ukraine in the future. The aim is to gain a broad and strong coalition of financial institutions for Ukraine.
