Rada set to streamline exports: Details

The Verkhovna Rada, Ukraine's Parliament, has passed at first reading a draft law on simplifying the export of Ukrainian produce, expanding the functions of the Export Credit Agency (ECA) to offer insurance and reinsurance, cheapening export lending, as well as raising the Agency's initial authorized capital to at least UAH 2 billion.

A total of 237 people's deputies voted for the relevant draft law ((No. 3793) at first reading, with the required minimum of 226 votes, an UNIAN correspondent reports.

Read alsoEconomy ministry to update Ukraine's export strategyAccording to the memo, the bill addresses a number of issues, including allowing ECA to offer insurance and reinsurance of export factoring.

According to the draft law, the controlling stake in the ECA's authorized capital will belong to the state and not be subject to privatization.

The right of initiative is set to be handed to the ECA board, along with the mandatory approval of decisions by the supervisory board. It is also proposed to leave only one type of government aid – state guarantees to ensure the fulfillment of ECA's debt obligations.

Background

Back in 2018, the government made the decision to create an Export Credit Agency in the form of a private joint-stock company to support domestic exporters.

The Cabinet of Ministers initially planned to have the ECA start full-fledged work by late 2020.