EU launches export credit facility for Ukraine

 (Global Trade Review, London, 2 August 2024) The European Union has launched an inaugural risk-sharing facility for the export credit industry, with an initial €300mn pilot aimed at boosting SME exports to buyers in war-torn Ukraine. The move comes after years of discussions in Brussels over a potential EU export credit facility with the Commission first floating the idea of such an instrument in 2021, citing “harsh competition” in key markets. The facility will extend guarantees to export credit agencies (ECAs) for transactions involving European SMEs and small mid-caps looking to export goods and services to buyers in the Ukrainian market. It is hoped the export credit facility will drive an uptick in European exports to Ukraine and support Kyiv’s reconstruction plan, forecast by the World Bank to cost US$486bn over the next decade.