The largest financing of BGK in Ukraine – over EUR 30 million – is already bringing effects
Poland is the 4th largest goods supplier to Ukraine (following China, Germany and Russia). Polish export is systematically growing in this direction. In 2017 it totaled EUR 4.2 billion, in 2019 EUR 4.7 billion and in 2020 almost EUR 5 billion. The data from BGK also confirms the interest in export to Ukraine. One of the Ukrainian importers has just opened the biggest grain storage and processing complex in the region. Polish Feerum supplied silos. BGK supported this transaction with the amount of EUR 30.25 million and the Polish exporter, thanks to the contract with BGK, has already received the money.
One of the Ukrainian importers has launched the largest in the region complex for grain storage and processing. Its capacity is 375 thousand tons. Polish exporter, the silos supplier, used BGK support in order to deliver export to Ukraine. The bank has made the biggest in history purchase of receivables by financing the delivery abroad. The importer has just opened the complex and the Polish exporter has already received the money from BGK for export realization.
- We support the entrepreneurs in export and foreign expansion on over 70 markets, including Ukraine. This is the direction with potential and Polish entrepreneurs may feel secure with us. By supporting Polish companies in export, we also support Polish economy in overcoming the crisis induced by Covid-19 pandemic. Since 2019, by purchasing receivables in Ukraine, we have financed the contracts worth of PLN 323 million. Altogether we provided financing for export to Ukrainian market for PLN 765 million, most of which are the transactions from the last 2-3 years. The two biggest regarding the amount projects the Ukrainian clients have finished this year and the exporters have already received the total amount from BGK, and the importers pay back the credit to BGK on favorable terms. These two largest projects are: the construction of a shopping center by Unibep and silos supply from Feerum, the Polish exporter – Joanna Wierzbowska, from Foreign Expansion Office, says.
The transactions are secured with KUKE – Export Credit Insurance Corporation.
- Ukraine is becoming the most important Eastern market for Poland, and the exchange is growing year by year. In KUKE’s portfolio last year this country was the third regarding the value of the sales insured by Polish companies, following Germany and Czech Republic. We insured goods export worth of PLN 1.25 billion. What is important, we record relatively few notifications from clients about intervention or debt collection, and the claims ratio has remained on a low level for a few years. At the same time debt collection efficiency is high. KUKE insures the sales of construction chemicals, food, cosmetics to Ukraine. The trade companies supplying the biggest retail chains are doing fine there. We also give protection to the investment projects implemented by Polish contractors such as shopping centers or silos, by joining forces with BGK – Daniel Piotrowski, deputy director of Insurance Risk Department in KUKE, says.
The available data indicates that in the 2Q of 2021 the import from Poland totaled USD 1.3 billion (USD 793.4 million in the comparable period in 2020), and export into Poland USD 1.32 billion (USD 630 million in comparable period in 2020). The total exchange amounted to USD 4.62 billion (USD 3.23 billion in comparable period in 2020).