The European Commission and the European Investment Bank (EIB) Group have unveiled a groundbreaking €300 million export credit guarantee facility aimed at bolstering exports from European small and medium-sized enterprises (SMEs) to Ukraine.
This initiative, announced on the sidelines of the ECOFIN meeting in Luxembourg on Friday, marks a significant step in supporting Ukraine's economic recovery and fostering closer trade ties with the European Union.
Under the EU's InvestEU programme, the European Investment Fund (EIF) will now be able to offer guarantees to export credit agencies, mitigating financial risks for EU businesses exporting to Ukraine. The facility is designed to encourage increased trade flow and contribute to Ukraine's economic rehabilitation.
EIB Group president Nadia Calviño emphasised the importance of this move, stating, "This facility will remove risk for EU companies wanting to export to Ukraine and will provide essential services and goods supporting the country's resilience and reconstruction." She highlighted that the agreement would enable European businesses to play a crucial role in Ukraine's recovery process.
Marjut Falkstedt, EIF chief executive, described the agreement as "a very important extension of the InvestEU programme," underlining its potential to support both European businesses and Ukraine's economic recovery.
European Commission executive vice-president Valdis Dombrovskis stressed the facility's role in strengthening Ukraine's economy and encouraging private investment. He noted that this economic boost comes at a critical time for Ukraine, as it progresses towards EU accession.
The initiative is part of a broader EU effort to support Ukraine's economic recovery by promoting trade and economic exchanges. In the coming weeks, the EIF will issue a Call for Expression of Interest to begin offering guarantees to export credit agencies, supporting businesses in EU Member States, as well as Norway and Iceland, that wish to export to Ukraine.
This innovative approach not only aims to reduce financial risks for EU exporters but also seeks to deepen economic ties between the EU and Ukraine, paving the way for Ukraine's eventual EU membership.
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