Some of the ECA’s tendencies: current state and newly-implemented changes
01.11.2010Please be aware as for some of the newly-implemented changes within the world export credit agencies (ECA) activities towards Ukrainian market and in particular, towards Ukrainian importing companies.
Credo Line Agency continues assisting export credit agencies as for their objective risk assessment in Ukraine and other CIS countries. Apart from this, we are keeping an eye on all of the developments and news which are so important for importing enterprises, particularly, which are located in Ukraine.
Due to the definite country changes and economic reforms, being implemented during June-October 2010 by the Ukrainian government (in particular new Tax Code and its circumstances) combined with the existent bad payment behavior from the side of big amount of Ukrainian importing enterprises, the leading world export credit agencies had tightened once again its attitude towards Ukraine.
Thus, the following measures were implemented by ECAs in order to minimize their own risks and yet remain available for cooperation with Ukrainian legal entities:
- new priorities and world-sharing procuracy shifts within risk assessment policy
- implementation of a wider re-insurance policy within ECAs operations
- status credit rating reports’ specification as for definite particular aspects, for instance, as offshore companies’ implementation
- request for a deeper legal investigation of the target company. A more transparent connection between the companies in a group is required. And which is more important, an additional set of necessary legal documentation is requested with the view to obtaining unconditional and accurate guarantees
These and some other of the newly-adopted instructions towards Ukraine signifies of non-satisfactory business actions of the majority of Ukrainian importing enterprises.
Yet, we can observe a permanent interest and desire of an international business in order to keep penetrating into Ukraine.
All in all, in order to continue supporting and developing international trade relations, all interested parties are to comply with general business ethics, discipline, scrupulosity and honesty both in financial and human sense.
Credo Line will put every effort to enhance the processes of stabilization of international relations and is welcoming every interested Party for partnership in this issue.
If you have any further questions of how we can be of use to You, do not hesitate to contact our office.