Ukraine's Export-Credit Agency backs export contracts worth 188 mln hryvni - Economy Ministry

MOSCOW. Aug 15 (Interfax) - The Ukrainian Economy Ministry's Export-Credit Agency (ECA) has supported contracts worth 188 million hryvni since the start of a program for pre-export financing portfolio insurance, Ukrainian media have reported with reference to the Economy Ministry's website.

The state banks acting as the program's partners, i.e. Oschadbank, Ukreximbank, and Ukrgasbank, have cleared a total of 18 applications for financing Ukrainian businesses delivering products to international buyers, the ministry said.

"Loans will be provided to producers of corrugated paper and cardboard, fried sunflower seeds, rubber products, furniture, and solid fuel boilers. Banks that provide export financing with the ECA's support are currently processing 20 applications from suppliers worth 88.1 million hryvni," it said.

Ukrainian businesspeople will soon be able to receive loans insured by the ECA at TAScombank, as well.

The ministry's statement quoted Deputy Economy Minister and Trade Representative Taras Kachka as saying that exporters can currently receive loans of up to 20 million hryvni at a good interest rate under the 5-7-9% program.

"To stimulate banks to conclude such loan contracts, the state guarantees the refunding of 85% of the sum if a manufacturer fails to comply with their loan obligations. Hence, we support exports of Ukrainian products and ensure foreign currency revenue for the country," he said.

As reported earlier, the Economy Ministry reported the first export contract insured by the ECA on June 17.