An Export Credit Agency: Good idea, but more work needed
A well organised and managed Export Credit Agency (ECA) can be a strong instrument to foster the export performance of the national industry.
Covering commercial and political risks of export transactions as well as political risks of foreign direct investments, an ECA enables domestic companies to develop commercial activities abroad and become successful in the global market.
Ukraine is one of the very few industrialised countries which have not yet established an official ECA. Ukraine’s Parliament passed a “Law on the establishment of an ECA” in December 2016, but it did not provide any funding for it in the state budget 2017, and necessary secondary legislation was not adopted. Consequently, the ECA was not established as a legal entity.
In order to serve Ukraine best, the ECA should be established soon. However, the necessary time should be taken to secure a sound and proper launching process. The Law shows some fundamental weaknesses and needs to be amended before an ECA can be set-up and start operations. With an unrestricted access to its products for all interested Ukrainian export companies, the ECA can play an important role to improve Ukraine’s success in the global trading system.
