09:55 09.10.2020

UK may provide Ukraine with GBP 2.5 bln – President's office

2 min read
UK may provide Ukraine with GBP 2.5 bln – President's office

The UK Export Finance (UKEF) credit agency may provide Ukraine with loan guarantees of up to GBP 2.5 billion for British-Ukrainian trade contracts, the presidential press service has said.

"The decision to bring UK Export Finance to the Ukrainian market and the sign this Memorandum is a sign of trust and support from the United Kingdom for the transformational changes that are currently taking place in Ukraine. I am convinced that this will open new opportunities for partnership between the economies of our countries, in particular in the fields of defense and security, renewable energy sources and transport infrastructure," Finance Minister of Ukraine Serhiy Marchenko said.

In the presence of Ukrainian President Volodymyr Zelensky, a Memorandum of Understanding was signed between Her Majesty's Secretary of State, acting through the Export Credit Guarantee Department, which is operating under the name UK Export Finance, and the Cabinet of Ministers of Ukraine, represented by the Finance Minister of Ukraine.

"We brought GBP 2.5 billion from the United Kingdom. This is a new page of Ukrainian-British cooperation and an unprecedented event for Ukraine," Zelensky said.

As noted, UKEF supports the export of all types of goods and services from the UK and can help businesses of all sizes successfully fulfill an export contract. The loans will be issued for ten years at a very attractive rate of 2.5% in euros and 3.5% in pounds sterling. The grace period of the loan is three years, the level of localization of the British share of production is 20%, and this is the lowest similar requirement among other export credit agencies in the West. This means that the loan can be issued subject to the involvement of British manufacturers only for one-fifth.

In accordance with the document, the UKEF British export credit agency resumes work on the Ukrainian market to support British exports.

Specific areas outlined in the Memorandum of Understanding with the Ukrainian government will be able to attract UKEF support.

"These funds can be used to implement investment projects in such priority areas as security and defense, agriculture, infrastructure, energy and healthcare. But we are not limited to them," Zelensky said.

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