31 Jan 2023 11:22

Ukrainian Export Credit Agency starting cooperation with Slovakia's Eximbanka SR

MOSCOW. Jan 31 (Interfax) - Ukraine's Export Credit Agency (ECA) and the Eximbanka SR state-owned export credit agency of Slovakia have signed a memorandum of understanding, outlining the central principles of their cooperation to facilitate the two countries' exports of goods and service, Ukrainian media said, citing the ECA website.

"From the point of view of Eximbanka SR, the memorandum of understanding acts as a fresh impetus to the enhanced partnership and boosts our confidence as regards the continuation of cooperation as part of concrete projects of mutual interest," Eximbanka SR said in comments.

The State Statistics Service of Ukraine estimated Ukraine-Slovakia trade in 2021 at $1.84 billion. Ukraine posted a surplus in its trade with Slovakia, with exports standing at $930 million and imports at $910 million that year. Ukraine accounted for 0.9% of Slovakia's overall imports.

"In 2021, we saw our trade increase by 20.8% ($332.2 million). Regrettably, raw materials remained Ukraine's key exports to Slovakia," ECA board member Oksana Ocheretyana said.

Ores, slags and ashes accounted for 47.8% of Ukraine's exports ($539.6 million), ferrous metals for 8.8% ($87.7 million), and timber and timber products for 4.2% ($41.5 million).

"The objective of the ECA is to change it," Ocheretyana said.

The Slovak market demonstrates demand for Ukrainian electric machinery (its exports to Slovakia grew by 33.1% to $90.8 million in 2021), railway locomotives (exports from Ukraine 22.8% up to $17.1 million in 2021), and Ukrainian furniture (Ukrainian furniture companies almost doubled their share of Slovakia's market in 2021, exports totaled $9.8 million), she said.

Eximbanka SR is Slovakia's state-owned export credit agency, which was established in 1997 with the aim of boosting Slovak exports. It offers a wide range of financial products, such as financing, insurance of exporters' loans, and guarantees.

As reported, Ukraine's Export Credit Agency is an organization authorized by the government to support and bolster the export of Ukrainian goods and services through insuring, reinsuring and providing guarantees as part of export contracts.

On January 7, 2023, the National Bank of Ukraine was appointed to regulate the work of the ECA, which will have to bring its activities in line with the established requirements and submit documents before July 7, 2023 and in line with the procedure set by the regulator to receive a license.