Representatives of business, parliamentarians and expert community consider it necessary to strengthen the power of Ukrainian producers in international markets through insurance, guarantees and cheapening of loans for export operations.
It is possible to fulfill through the creation of an export credit agency (ECA). Corresponding draft law No.2142a was approved by the parliament in the first reading.
"ECA is necessary to equip the Ukrainian government with an effective mechanism of overcoming the shameful situation of deindustrialization and weakening of economy, which is a threat to national security. Falling and primitivisation of exports mean worse trade balance, weaker hryvnia, and bigger dependence on imports. Export credit agency is part of the solution to these problems," said Chairperson of the Committee on Industrial Policy and Entrepreneurship Viktor Halasiuk at the parliamentary round table entitled "Export credit agency as an effective tool of boosting Ukrainian exports."
One of the authors of the draft law No.2142a, MP Oleh Kryshyn assured that “experience of the functioning of export credit agencies in other countries shows that their activity inevitably leads to the growth of export performance."
The lack of such an institution in Ukraine dramatically limits the business area for domestic exporters.
"Ukraine had the opportunity to sign an export contract with Iran for about USD 12 billion, but it is impossible without an export credit agency, because in most cases they demand prepayment or other methods of guaranteeing contract implementation," said MP Leonid Kozachenko, pointing to another key factor: "Only three countries have not lifted sanctions from Iran, namely Syria, Iraq and Ukraine."
Speaking for economization of foreign policy, Deputy Chairperson of the Committee on Foreign Affairs Viktor Vovk disclosed international legal aspects of the issue: "Even the most unique agreements on free trade areas do not guarantee economic growth without adequate infrastructure for supporting domestic exports."
SE Derzhzovnishinform considers the approval of the law strategically important. "Leading countries are now on the verge of a new industrial revolution. Foreign trade of Ukraine undergoes very important changes. Without solving the issue of state support to exports, Ukraine is at risk of losing itself as an industrial country of the world," said representative of the enterprise Ildar Usmanov, and offered the World Bank as a source of funding.
"In Ukraine, the very first constraint is the lack of funds for carrying out export-import operations (opening of a letter of credit, insurance, agreement guarantees, carrying out of logistics supply, repeat documentation, etc.). It transfers the vast majority of potential contracts to the category of so-called unrealized projects. Business has no opportunity to draw credits at extremely high interest rates. This makes reasonable the creation of such an agency, which is aimed at supporting the development of exports activity," summarized the leading expert of CMD-Ukraine Ihor Huzhva.