Rada approves establishment of export-credit agency
The Verkhovna Rada of Ukraine has approved the establishment of an Export-Credit Agency with the main task of supporting large-scale expansion and doubling the volume of exports by 2019.
The bill on ensuring the large-scale export expansion of Ukrainian producers through insuring, guaranteeing, and reducing the cost of export lending (No.2142a) was supported by 237 MPs with a minimum of 226 votes required.
The explanatory note to the bill states that the document stipulates the creation of a special security mechanism and export support, including by attracting resources of state banks, in particular, of Ukreximbank.
Read alsoRada passes state budget 2017"The legislation proposed provides for the definition of legal conditions for introduction of one of the state export support mechanisms in Ukraine, namely, the creation of the state export support institution, which will insure (reinsure) the risks, guarantee operations for foreign economic transactions of exporters, as well as provide cheaper export loans, thereby indirectly stimulating the development of the economy as a whole," the memorandum to the bill says.
The sources of financing of export-credit agency include its own funds; funds raised from public and private investors on a repayment or repayable basis; funds provided by international organizations on a repayment or repayable basis; budget and other sources not prohibited by law.
The priority areas of production, which will be primarily supported by the agency, will be the production of processed goods, innovative production, and production of high-tech products.
Read alsoRada passes anti-corruption amendments to Tax CodeCommenting on the need to adopt the bill, Ukrainian Prime Minister Volodymyr Groysman noted that setting up the agency would be a step toward building an innovative economy. "Additional costs should be created in Ukraine. We already have the Office of Investment Support, the Industry Recovery Committee, and now we need to conquer new markets," Groysman said.