Credendo announces it will resume cover on Ukraine
- At the request of the Belgian federal government, Credendo will resume export cover on Ukraine for certain transactions
- In doing so, Belgium is willing to participate in the efforts to rebuild and supply Ukraine
- Credendo, acting for the Belgian State, is making EUR 100 million available for this purpose
As a result of the Russian invasion of Ukraine in February 2022, Credendo – Export Credit Agency (‘Credendo’), like most other export credit agencies, classified Ukraine in the highest risk category 7/7. Consequently, Credendo has not covered any transactions on Ukraine since then. This decision had been applied to both short-term and medium- to long-term export transactions.
Although an end to the war is currently not in sight, it is already clear that a huge international effort will be required to support Ukraine’s reconstruction. In that context, many discussions are taking place in many countries and international institutions about how commercial trade with and investment flows towards Ukraine can be resumed.
The Belgian federal government considers it essential to participate in the efforts to rebuild Ukraine and to enable the export of daily consumer goods Ukraine needs. Therefore, the Belgian government asked Credendo to resume coverage of export transactions on Ukraine, acting for the account of the Belgian State.
An amount of EUR 100 million will be made available for this purpose, of which EUR 75 million for short-term transactions (risk duration of maximum one year) and EUR 25 million for medium- to long-term transactions (risk duration above one year). That ceiling could later be raised based on positive experience. Insurance will be made available for transactions with sufficient Belgian interest and for a maximum of EUR 15 million per transaction. Moreover, where necessary, guarantees from Ukrainian banks or authorities will be required.
The Belgian State and Credendo therefore hope to contribute to Ukraine’s reconstruction and help ensure daily consumer goods Ukraine needs can be delivered.
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