Poroshenko supported the law on the establishment of an Export credit Agency

Порошенко поддержал закон о создании Экспортно-кредитного агентства

Petro Poroshenko signed the document, archival photos

The President of Ukraine Petro Poroshenko has signed the law “On ensuring the expansion of large-scale export of Ukrainian producers by the insurance, guarantee and reduce the cost of lending” (project No. 2142а), which provides for the creation in Ukraine of an Export credit Agency (ECA). This is stated on the page of the bill on the Council website.

As noted, the document signed by the President entered the Parliament on Wednesday.

Recall, December 20, Parliament supported the draft law in the second reading and in General.

The bill defines the principles of state support of export activities through insurance, reinsurance, security, partial compensation of interest rates on export credits with the aim of creating conditions for the implementation of large-scale expansion of export of goods (works, services) of Ukrainian origin to foreign markets, protecting Ukrainian exporters against the risk of defaults and financial losses and increase of competitiveness of Ukrainian producers on world markets.

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The document States that for promotion of export of goods (works, services) of Ukrainian origin, the Cabinet of Ministers of Ukraine creates an Export credit Agency (hereinafter ECA), which on a voluntary basis, carries out insurance, reinsurance, guarantees on contracts, which provide export development and is also involved in the implementation of the program of partial compensation of interest rates on export credits.

Legislative act defined terminology regarding the implementation of the state support of export; objectives, directions and principles of state support of export activities.

According to the draft Law, the main task of state support of export activities are:

1) creation of insurance system and to guarantee commercial and non-commercial risks of export operations;

2) expand long-term export credit;

3) mechanism of partial compensation of interest rates on export credits.

The bill defines authorities of management and control of ECA; types and terms of ECA; ECA funding sources; the scope of support and the like.

Also, the draft law provides for the publicity of the activities of an Export credit Agency, determines the order and conditions for granting state financial support of export activities.

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