By KYIV. Jan 9 (Interfax-Ukraine) – At the end of 2022, Kredobank and the Export Credit Agency (ECA) signed a cooperation agreement under the portfolio insurance program for loans issued in pursuance of export contracts with simplified collateral requirements, according to the ECA website.
This agreement will allow the bank to expand its ability to support customers who are already exporting goods and services.
Under the terms of the program, ECA will insure the bank’s risks on loans issued in pursuance of foreign economic contracts. The maximum amount of such a loan can be UAH 20 million. The combination of this program with the Affordable Loans 5-7-9% program will allow the bank’s customers to receive loans at preferential interest rates.
"We understand that Ukrainian exporters are critically short of financial resources during the war, they are in dire need of credit support. Therefore, we are fruitfully cooperating with Ukrainian banks to make loans for domestic exporters even more affordable. I am glad to welcome Kredobank among partner banks ECA. This is the first bank with 100% foreign capital that has joined our program," acting Board Chairman of the ECA Ruslan Hashev, whose words are quoted in the report, said.
As reported, portfolio insurance of loans issued in pursuance of export contracts with simplified collateral requirements is a mechanism to support exporters during the war, quickly developed and launched by the Ministry of Economy of Ukraine and ECA in partnership with Ukrainian banks in June 2022 with the aim of broad support, recovery and presence of Ukrainian manufacturers and suppliers of works and services in the world markets.
The government has also allowed banks to provide such loans at preferential rates under the Affordable Loans 5-7-9% program. The actual lending is done by ECA’s partner banks. So far, these are Sberbank, Ukrgasbank, Ukreximbank and Kredobank.
According to the terms of the program, one can get up to UAH 20 million in loans for up to a year. Credit funds shall be directed exclusively to the implementation of the export contract.
