Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects

Kornieieva Iuliia

doi:doi:10.11648/j.ipa.20180201.14

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Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects

Kornieieva Iuliia

Published in International and Public Affairs (Volume 2, Issue 1)

Received: 5 March 2018 Accepted: 2 April 2018 Published: 9 May 2018

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Abstract

This study examines the role of the ECA as an important element in the system of attracting investment resources. The functioning of the ECA is seen as an institutional stimulus for improving investment climate, promoting export, increasing the competitiveness of the national economy and developing export potential in both the private and public sectors. The author examines the opportunities that ECA creates in financing capital investment, which is especially important for state-owned companies in Ukraine. The author emphasizes the importance of ECA in creating conditions for attracting financial resources on favourable terms for state corporations which seek to purchase foreign expensive equipment, that do not have analogues on the domestic market. Major objective of this study is to develop recommendations concerning creation prerequisites for practical implementation of ECA in Ukraine. The author proposed new financial instruments which with support from international donors will contribute to the effective activity of ECA in Ukraine. These include the instrument of the provision of guarantees to the national EСA for the entry into international capital markets - ECA's emission guarantees; guarantees of support of EСA`S projects that will facilitate the cooperation with foreign financial institutions; as well as financial instruments that will perform the compensatory function of equalizing market interest rates for large projects and for long periods of time. The importance of establishing the register of Ukrainian state-owned enterprises which will be included into the ECA`s program in cooperation with IMF, WB, EBRD and other IFOs is emphasized.

Published in	International and Public Affairs (Volume 2, Issue 1)
DOI	10.11648/j.ipa.20180201.14
Page(s)	28-38
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Export Credit Agency, International Financial Organization, ECA's Emission Guarantee, Guarantee for Support of EСA`s Projects, Investment

References

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[2]	The Law of Ukraine On Providing for Large-Scale Export Expansion of Goods (Works, Services) Originating in Ukraine through Insurance, Guarantees and Cheapening of Export Credits” № 1792-VIII. (2017). Vidomosti Verkhovnoi Rady Ukrainy, 4, 43.
[3]	The Law of Ukraine “On the State Budget of Ukraine for 2018” № 2246-VIII (2018). Vidomosti Verkhovnoi Rady Ukrainy, 3-4, 26.
[4]	Ukraine 2016 Article IV Consultation and third review under the extended arrangement. (Letter of intent and Memorandum on economic policy) (2017). IMF Country Report, 17/83.
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[13]	Stiglitz, J., Weiss, E. (1981). Credit rationing in markets with imperfect information. The American Economic Review, 71 (3), 393-410.
[14]	Mazzucato, M., Semieniuk, G. (2017). Public financing of innovation: new questions. Oxford Review of Economic Policy, 33 (1), 24–48.
[15]	Goldzimer, A. (2002). Globalization’s most perverse secret: the role of export credit and investment insurance agencies. Alternatives to Neoliberalism Conference. May 23-24, 2002.
[16]	Ehlers, T. (2014). Understanding the challenges for infrastructure finance. BIS Working Papers, 454.
[17]	Bhandari, R., Maurer, С. (2000). The climate of export credit agencies. World Resources Institute. Washington DC.
[18]	OECD (2018). Country Risk Classifications of the Participants to the Arrangement on Officially Supported Export Credit. Organisation for Economic Co-operation and Development.
[19]	Export Guarantee and Insurance Corporation (EGAP).
[20]	Council Directive 98/29/EC of 7 May 1998 on harmonisation of the main provisions concerning export credit insurance for transactions with medium and long-term cover. (1998). Official Journal of the European Communities, L 148/22.
[21]	Communication of the Commission to Member States amending the communication pursuant to Article 93(1) of the EC Treaty applying Articles 92 and 93 of the Treaty to short-term export-credit insurance 2001/C 217/02. (2001). Official Journal of the European Communities, C. 217/44.
[22]	Commission Notice on the application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees. (2000). Official Journal of the European Communities, C 71/43.
[23]	Export Development Canada. Retrieved from http://www.edc.ca.
[24]	Hungarian Export Credit Insurance Ltd and Hungarian Export-Import Bank plc. Retrieved from https://exim.hu/
[25]	Latvian Guarantee Agency (LVA). Retrieved from https://www.altum.lv/
[26]	Export Import Bank of China. Retrieved from http://english.eximbank.gov.cn/en/
[27]	The Export–Import Bank of the Republic of China. Retrieved from https://www.eximbank.com.tw/
[28]	China Export and Credit Insurance Coporation (Sinosure). Retrieved from http://www.sinosure.com.cn/sinosure/english/English.html
[29]	EULER HERMES. Retrieved from http://www.eulerhermes.com/
[30]	Spanish Export Credit Agency CESCE. Retrieved from http://inglaterra.cesce.es/
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[38]	Order of the Cabinet of Ministers of Ukraine dated May 24, 2017 No. 415-р “On Approval of the Action Plan for Implementation of the Strategy for Reforming the Public Finance Management System for 2017-2020”. Cabinet of Ministers of Ukraine.
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[40]	Krugman. P. (2010). The new economic geography, now middle-aged. Regional Studies, 45 (1), 1-7.

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Kornieieva Iuliia. (2018). Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects. International and Public Affairs, 2(1), 28-38. https://doi.org/10.11648/j.ipa.20180201.14

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Kornieieva Iuliia. Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects. Int. Public Aff. 2018, 2(1), 28-38. doi: 10.11648/j.ipa.20180201.14

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Kornieieva Iuliia. Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects. Int Public Aff. 2018;2(1):28-38. doi: 10.11648/j.ipa.20180201.14

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@article{10.11648/j.ipa.20180201.14,
  author = {Kornieieva Iuliia},
  title = {Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects},
  journal = {International and Public Affairs},
  volume = {2},
  number = {1},
  pages = {28-38},
  doi = {10.11648/j.ipa.20180201.14},
  url = {https://doi.org/10.11648/j.ipa.20180201.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ipa.20180201.14},
  abstract = {This study examines the role of the ECA as an important element in the system of attracting investment resources. The functioning of the ECA is seen as an institutional stimulus for improving investment climate, promoting export, increasing the competitiveness of the national economy and developing export potential in both the private and public sectors. The author examines the opportunities that ECA creates in financing capital investment, which is especially important for state-owned companies in Ukraine. The author emphasizes the importance of ECA in creating conditions for attracting financial resources on favourable terms for state corporations which seek to purchase foreign expensive equipment, that do not have analogues on the domestic market. Major objective of this study is to develop recommendations concerning creation prerequisites for practical implementation of ECA in Ukraine. The author proposed new financial instruments which with support from international donors will contribute to the effective activity of ECA in Ukraine. These include the instrument of the provision of guarantees to the national EСA for the entry into international capital markets - ECA's emission guarantees; guarantees of support of EСA`S projects that will facilitate the cooperation with foreign financial institutions; as well as financial instruments that will perform the compensatory function of equalizing market interest rates for large projects and for long periods of time. The importance of establishing the register of Ukrainian state-owned enterprises which will be included into the ECA`s program in cooperation with IMF, WB, EBRD and other IFOs is emphasized.},
 year = {2018}
}

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TY  - JOUR
T1  - Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects
AU  - Kornieieva Iuliia
Y1  - 2018/05/09
PY  - 2018
N1  - https://doi.org/10.11648/j.ipa.20180201.14
DO  - 10.11648/j.ipa.20180201.14
T2  - International and Public Affairs
JF  - International and Public Affairs
JO  - International and Public Affairs
SP  - 28
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PB  - Science Publishing Group
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AB  - This study examines the role of the ECA as an important element in the system of attracting investment resources. The functioning of the ECA is seen as an institutional stimulus for improving investment climate, promoting export, increasing the competitiveness of the national economy and developing export potential in both the private and public sectors. The author examines the opportunities that ECA creates in financing capital investment, which is especially important for state-owned companies in Ukraine. The author emphasizes the importance of ECA in creating conditions for attracting financial resources on favourable terms for state corporations which seek to purchase foreign expensive equipment, that do not have analogues on the domestic market. Major objective of this study is to develop recommendations concerning creation prerequisites for practical implementation of ECA in Ukraine. The author proposed new financial instruments which with support from international donors will contribute to the effective activity of ECA in Ukraine. These include the instrument of the provision of guarantees to the national EСA for the entry into international capital markets - ECA's emission guarantees; guarantees of support of EСA`S projects that will facilitate the cooperation with foreign financial institutions; as well as financial instruments that will perform the compensatory function of equalizing market interest rates for large projects and for long periods of time. The importance of establishing the register of Ukrainian state-owned enterprises which will be included into the ECA`s program in cooperation with IMF, WB, EBRD and other IFOs is emphasized.
VL  - 2
IS  - 1
ER  -

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Author Information

Kornieieva Iuliia

Department of Macroeconomic Regulation & International Economic Relations, Academy of Financial Management, Kyiv, Ukraine

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APA Style

Kornieieva Iuliia. (2018). Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects. International and Public Affairs, 2(1), 28-38. https://doi.org/10.11648/j.ipa.20180201.14

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ACS Style

Kornieieva Iuliia. Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects. Int. Public Aff. 2018, 2(1), 28-38. doi: 10.11648/j.ipa.20180201.14

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AMA Style

Kornieieva Iuliia. Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects. Int Public Aff. 2018;2(1):28-38. doi: 10.11648/j.ipa.20180201.14

Copy | Download

@article{10.11648/j.ipa.20180201.14,
  author = {Kornieieva Iuliia},
  title = {Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects},
  journal = {International and Public Affairs},
  volume = {2},
  number = {1},
  pages = {28-38},
  doi = {10.11648/j.ipa.20180201.14},
  url = {https://doi.org/10.11648/j.ipa.20180201.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ipa.20180201.14},
  abstract = {This study examines the role of the ECA as an important element in the system of attracting investment resources. The functioning of the ECA is seen as an institutional stimulus for improving investment climate, promoting export, increasing the competitiveness of the national economy and developing export potential in both the private and public sectors. The author examines the opportunities that ECA creates in financing capital investment, which is especially important for state-owned companies in Ukraine. The author emphasizes the importance of ECA in creating conditions for attracting financial resources on favourable terms for state corporations which seek to purchase foreign expensive equipment, that do not have analogues on the domestic market. Major objective of this study is to develop recommendations concerning creation prerequisites for practical implementation of ECA in Ukraine. The author proposed new financial instruments which with support from international donors will contribute to the effective activity of ECA in Ukraine. These include the instrument of the provision of guarantees to the national EСA for the entry into international capital markets - ECA's emission guarantees; guarantees of support of EСA`S projects that will facilitate the cooperation with foreign financial institutions; as well as financial instruments that will perform the compensatory function of equalizing market interest rates for large projects and for long periods of time. The importance of establishing the register of Ukrainian state-owned enterprises which will be included into the ECA`s program in cooperation with IMF, WB, EBRD and other IFOs is emphasized.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects
AU  - Kornieieva Iuliia
Y1  - 2018/05/09
PY  - 2018
N1  - https://doi.org/10.11648/j.ipa.20180201.14
DO  - 10.11648/j.ipa.20180201.14
T2  - International and Public Affairs
JF  - International and Public Affairs
JO  - International and Public Affairs
SP  - 28
EP  - 38
PB  - Science Publishing Group
SN  - 2640-4192
UR  - https://doi.org/10.11648/j.ipa.20180201.14
AB  - This study examines the role of the ECA as an important element in the system of attracting investment resources. The functioning of the ECA is seen as an institutional stimulus for improving investment climate, promoting export, increasing the competitiveness of the national economy and developing export potential in both the private and public sectors. The author examines the opportunities that ECA creates in financing capital investment, which is especially important for state-owned companies in Ukraine. The author emphasizes the importance of ECA in creating conditions for attracting financial resources on favourable terms for state corporations which seek to purchase foreign expensive equipment, that do not have analogues on the domestic market. Major objective of this study is to develop recommendations concerning creation prerequisites for practical implementation of ECA in Ukraine. The author proposed new financial instruments which with support from international donors will contribute to the effective activity of ECA in Ukraine. These include the instrument of the provision of guarantees to the national EСA for the entry into international capital markets - ECA's emission guarantees; guarantees of support of EСA`S projects that will facilitate the cooperation with foreign financial institutions; as well as financial instruments that will perform the compensatory function of equalizing market interest rates for large projects and for long periods of time. The importance of establishing the register of Ukrainian state-owned enterprises which will be included into the ECA`s program in cooperation with IMF, WB, EBRD and other IFOs is emphasized.
VL  - 2
IS  - 1
ER  -

Copy | Download