Pushing off the bottom: Can exporters today raise external financing
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The main topics of the Summit were currently available export financing tools and preparation for possible challenges in 2024.
Task #1 is to restore exports
The restoration of Ukrainian exports is a strong competitive economy and an inflow of foreign exchange revenue to the state, which guarantees macroeconomic stability and accelerates our victory over the aggressor.
Today, the business of Ukrainian exporters is undergoing a painful forced transformation. On the one hand, European integration processes promise prospects for development in foreign markets and a significant reduction of barriers.
On the other hand – a full-scale war, which is serious hit on economy of the country. Taken together, these factors have meant that exporters have the potential but lack the resources to realize it.
According to data from the Ministry of Economy, in 2023, Ukrainian exports decreased by 18.5% to $36 billion. This is almost half of what it was a year before the full-scale invasion.
In January 2024, the situation improved somewhat – Ukraine exported the largest volume of goods since the beginning of the full-scale invasion – 12 million tons of production.
The growth of exports, in particular, is due to the opening of an alternative sea corridor, the launch of the mechanism of insurance of ships against military risks and the establishment of river logistics on the Danube.
The Ministry of Economy predicts that under current conditions, exports will grow in the coming years. By 9% in 2024, 19.4% in 2025 and 20.6% in 2026.
But in order to achieve such indicators today, it is important for Ukrainian exporters to have an effective protection mechanism against the risks of non-payments and financial losses, which are a serious challenge for participants in international trade.
Task No. 2 – support of exporters
According to the results of 2022, Ukreximbank became the Bank of the first choice for exporters and importers – transactions on the Forex market for 15.8 billion US dollars were carried out. The bank financed $330 million in trade finance deals, including $130 million through the end of 2023.
Supporting exporters is one of the main missions of Ukreximbank. In this matter, the Bank has a unique position on the market. Ukreximbank provides a wide range of services to Ukrainian exporters, combining the Bank’s capabilities with MFI programs. Ukreximbank is a powerful corporate investment bank of the country.
Performs the role of financial agent (shoulder) of the state. In post-war reconstruction projects, Ukreximbank combines reconstruction funds, the state, Ukrainian and international business. Bank of first choice for exporters and importers.
In 2022-2023, Ukreximbank provided financing to more than 100 exporters for a total amount of more than UAH 12 billion. In addition, the bank actively provides trade financing.
The bank also helps exporters with consulting, including contract preparation and financing structuring. According to Ukreximbank statistics, 1 US dollar provided to an exporter in the form of financing leads to an increase in exports by 3 US dollars.
EXIM Trade Pro – business access to profitable and effective trade financing tools
To strengthen Ukrainian exporters and importers, the state-owned Ukreximbank created the EximTradePro Platform.
EXIM Trade Pro is a special project of the Bank to facilitate access to convenient, profitable and effective trade financing tools for Ukrainian exporters and importers. The platform advises and finances, integrating Ukraine into world trade.
The main advantages of EXIM Trade Pro for exporters are: an extensive network of correspondent banks; high-quality structuring of deals; the ability to provide “large checks”; the availability of additional financial resources that the Bank receives from partners – international financial organizations: EBRD, IFC within their trade financing programs.
The advantages of EXIM Trade Pro for importers are: advance payments to suppliers by the bank; thorough verification of supplier documents by the bank; reducing the risks of non-delivery, because payment is made only upon the fact that the seller fulfills the terms of the letter of credit; access to financing contracts with the participation of international financial organizations and foreign banks; consulting support for the client at all stages of the transaction.
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