Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects
International and Public Affairs
Volume 2, Issue 1, March 2018, Pages: 28-38
Received: Mar. 5, 2018;
Accepted: Apr. 2, 2018;
Published: May 9, 2018
Views 670 Downloads 43
Kornieieva Iuliia, Department of Macroeconomic Regulation & International Economic Relations, Academy of Financial Management, Kyiv, Ukraine
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.
Peculiarities of Implementation Export Credit Agency in Ukraine: Investment Aspects, International and Public Affairs.
Vol. 2, No. 1,
2018, pp. 28-38.
Export Finance Report (2016). TXF.
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.
The Law of Ukraine “On the State Budget of Ukraine for 2018” № 2246-VIII (2018). Vidomosti Verkhovnoi Rady Ukrainy, 3-4, 26.
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.
Stiglitz, J. (2008). Government Failure versus Market Failure: Principles of Regulation. IPD Working Paper, 144.
Stiglitz, J. (1989). The Economic Role of the State. Basil Blackwell and Bank Insinger de Beaufort NV, 9–85.
Krugman, P. (1981). Intraindustry specialization and the gains from trade. Journal of political Economy, 89 (5), 959-973.
Krugman, P. (1979). Increasing returns, monopolistic competition, and international trade. Journal of International Economics, 9, 469–479.
Krugman, P. (1981). Trade, accumulation, and uneven development. Journal of Development Economics, 8, 149-161.
Krugman, P. (1991). Increasing Returns and Economic Geography. Journal of Political Economy, 99 (3), 483-499.
Krugman, P. (1991). Geography and trade. Cambridge: The MIT Press.
Krugman, P. (1996). The self-organizing economy. Wiley-Blackwell.
Stiglitz, J., Weiss, E. (1981). Credit rationing in markets with imperfect information. The American Economic Review, 71 (3), 393-410.
Mazzucato, M., Semieniuk, G. (2017). Public financing of innovation: new questions. Oxford Review of Economic Policy, 33 (1), 24–48.
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.
Ehlers, T. (2014). Understanding the challenges for infrastructure finance. BIS Working Papers, 454.
Bhandari, R., Maurer, С. (2000). The climate of export credit agencies. World Resources Institute. Washington DC.
OECD (2018). Country Risk Classifications of the Participants to the Arrangement on Officially Supported Export Credit. Organisation for Economic Co-operation and Development.
Export Guarantee and Insurance Corporation (EGAP).
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.
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.
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.
Export Development Canada. Retrieved from http://www.edc.ca.
Hungarian Export Credit Insurance Ltd and Hungarian Export-Import Bank plc. Retrieved from https://exim.hu/
Latvian Guarantee Agency (LVA). Retrieved from https://www.altum.lv/
Export Import Bank of China. Retrieved from http://english.eximbank.gov.cn/en/
The Export–Import Bank of the Republic of China. Retrieved from https://www.eximbank.com.tw/
China Export and Credit Insurance Coporation (Sinosure). Retrieved from http://www.sinosure.com.cn/sinosure/english/English.html
EULER HERMES. Retrieved from http://www.eulerhermes.com/
Spanish Export Credit Agency CESCE. Retrieved from http://inglaterra.cesce.es/
Bpifrance Assurance Export. Retrieved from http://www.bpifrance.fr/Qui-sommes-nous/Nos-metiers/International2/Assurance-Export.
Atradius. Retrieved from https://group.atradius.com/
Changing Trade (2016). EDC Annual Report. Retrieved from http://www.edc.ca/EN/About-Us/Corporate-Reports/Documents/annual-report-e-2016.pdf
EGAP Annual report 2015. Retrieved from http://www.egap.cz/dokumenty/vyrocni-zpravy/vyrocni-zprava-2015-en.pdf.
Statistical data. World Bank. Retrieved from https://data.worldbank.org/indicator/FR.INR.LEND?view=chart.
Statistical data. IMF. Retrieved from http://data.imf.org/
National Bank of Ukraine (2018). Overview of the banking sector (February 2018), 6.
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.
The Law on the Budget Code of Ukraine (2010). Vidomosti Verkhovnoi Rady Ukrainy, 50-51, 572.
Krugman. P. (2010). The new economic geography, now middle-aged. Regional Studies, 45 (1), 1-7.