Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) has successfully launched the first deal under the EUs Ukraine export credit guarantee facility, in collaboration with Denmarks export credit agency, EIFO. This initiative aims to bolster EU businesses trading with Ukraine, particularly in light of the ongoing economic challenges faced by the country. The specific issue addressed was the need for financial support to facilitate export transactions, enabling Danish SMEs and mid-caps to export goods and services to Ukraine.
The tailored solution provided through this facility includes a guarantee of up to 20 million for export credit transactions. This financial backing is designed to support approximately 40 Danish companies, allowing them to access essential goods, technologies, and services needed in Ukraine, such as machinery, clean energy, and pharmaceuticals. This initiative not only aims to sustain the Ukrainian economy but also strengthens the economic ties between the EU and Ukraine, which is crucial for Ukraine's path towards EU accession.
Quantifiable results from this initiative include the facilitation of trade that is expected to significantly benefit the Ukrainian economy. In 2024, exports from the EU to Ukraine reached 42.8 billion, marking a 9.4% increase compared to the previous year. The export credit guarantee facility, which is part of a broader 300 million initiative for European SMEs and mid-caps, has been oversubscribed shortly after its launch, indicating strong demand and confidence in the program. This agreement represents a significant step in integrating the EU and Ukrainian economies, contributing to Ukraine's recovery and development efforts.