The Cabinet of Ministers has allocated 1,8 billion UAH to the Export Credit Agency to support Ukrainian export.

According to Ukrinform, this was announced by Prime Minister Denis Shmygal in his Telegram.

“We have decided to increase the authorized capital of the Export Credit Agency to 1,8 billion UAH This will allow to expand Ukrainian goods to foreign markets,”  - Shmygal wrote.

“Today, the government adopted a resolution “On Amendments to the Statute of the Private Joint-Stock Company”  Export Credit Agency” , which was initiated by the Ministry of Economy - the authorized governing body of JSC “Export Credit Agency” . This decision is crucial in the process of recapitalization of the authorized capital of ECA to 2 billion hryvnias, which we plan to complete in September this year, approving the report on the results of the National Commission on Securities and Stock Market emission”, - said Deputy Minister of Economy of Ukraine Mykhailo Lev.

The decision to increase the authorized capital of ESA by 1,8 billion UAH was made by the Cabinet of Ministers of Ukraine in March 2021 in order to increase the efficiency of ECA in the direction of financial support for export.

“ECA’s financial capacity with a capital of 2 billion UAH will allow it to more effectively fulfill the assignments set by the Law of Ukraine  “On Ensuring Large-Scale Expansion of Export of Goods (Works, Services) of Ukrainian Origin by Insurance, Guaranteeing and Cheaper Export Credit”. We hope that the new financial opportunities will allow ECA to establish effective activities of the Agency for the benefit of Ukrainian exporters,”  - Lev said.

As reported by Ukrinform, in February 2018 the Cabinet of Ministers adopted a resolution on the establishment of PJSC “Export Credit Agency”, approved its constituent documents (statute, regulations on the supervisory board, the board, the audit committee, the procedure for competitive selection of candidates for the position of member supervisory board). The legal entity PJSC “Export Credit Agency” was registered in November of the same year. Authorized capital in the amount of 200 million UAH was also formed and measures were taken for the private placement of the first issue of ECA shares.

The authorized capital of the Export Credit Agency was increased by 1,8 billion UAH by issuing 1 800 000 additional shares of the existing nominal value, retaining 100 percent of such shares in pursuance of the Law of Ukraine “On the State Budget of Ukraine 2021” and the resolution of Cabinet of Ministers “On increasing the authorized capital of the private joint-stock company  “Export Credit Agency”.      

At a meeting of the Cabinet of Ministers Denis Shmygal reminded that the Agency has not been working since 2018, as it did not have enough funds at its disposal, the Agency’s correspondent reports.

In addition, Shmygal noted that the state will support business through other programs, in particular, over the last year more than 60 billion UAH of available and cheap loans were received by small and medium-sized businesses.

The Prime Minister added that in the second quarter Ukraine’s GDP grew by 5,4%. An important role in economic recovery was played by the increase of Ukrainian export, which grew by 31% in six months, or 7 billion US dollars.

Earlier it was reported that the Ministry of Economy is completing the recapitalization of the Export Credit Agency to 2 billion UAH and restarting its activities to support business.

Reference source: Укрінформ