KUKE introduces new export-oriented solutions for banks

The new solutions made available by KUKE will enable banks to expand the scale of their trade finance operations and increase financing for domestic export-oriented investments.

Polish exporters now have new solutions at their disposal, thanks to which they will be able to expand even more effectively in foreign markets. KUKE offers a comprehensive system of support. Some of the instruments are addressed directly to companies, but most will be available through banks servicing and financing them. The Polish Bank Association has joined the promotion of the new package of solutions. An agreement on cooperation in this respect was signed today by presidents of both institutions: Janusz Władyczak from KUKE and Krzysztof Pietraszkiewicz from the PBA.

"cing exports and the expansion of Polish companies in foreign markets has always been one of the priorities of Polish banks, which have thus contributed to the faster development of the Polish economy over the years. It should be stressed that the vast majority of exporters implement their plans in cooperation with banks. Export financing involves specialist knowledge combining many issues. The current dynamics of economic change reinforces the need to broaden this knowledge. I hope that more and more Polish companies will become a permanent important link in international cooperation. The Polish Bank Association has for many years supported initiatives to develop domestic exports, among others through its membership in the National Committee of the International Chamber of Commerce (ICC Poland). The PBA is one of the founding members of this organisation. The global downturn caused by the pandemic has resulted in a significant increase in risk, which has made financing institutions more cautious in assessing their clients. Solutions proposed by KUKE, which increase banks' capacity to support companies, are a remedy for this state of affairs and at the same time an opportunity to return to dynamic growth after the slowdown. Maintaining high export growth dynamics should be an important element of the economic development strategy in the coming years" - said Krzysztof Pietraszkiewicz, president of the PBA.

KUKE, as an institution whose mission is to act for the benefit of Polish exporters, has for years been improving its offer of solutions supporting exports. To this end, it cooperates closely with banks providing ongoing services and financing of its clients' operations.

"Observing the profound changes that have recently taken place in international trade and investments, also as a result of the pandemic, and considering the situation in the domestic banking sector, we have completely changed our approach to the design of instruments for exporters. The new support system now being introduced encourages banks to finance more extensively not only commercial contracts but also investment projects and acquisitions undertaken by their customers. We are offering instruments that only a few countries in Europe make available to their exporters. We are convinced that using them will give Polish entrepreneurs a clear advantage in global markets. The role of KUKE, which offers instruments with State Treasury guarantees, is to limit the risk of exporter activity and the banks supporting them, and thus to strengthen the competitiveness of Polish exports" - said Janusz Władyczak, president of KUKE.

The new KUKE instruments reduce banks' credit risk connected with financing exporters' ventures. As a result, banks focused on rapid growth will be able to lend more working capital, investment capital and guarantee funds to their clients at the same risk level, while more cautious institutions will be able to reduce their risks by ceding them to KUKE. Entrepreneurs, in turn, will receive a tool allowing them to develop their trade abroad and investments in Poland, and thus conduct safe expansion.

The cooperation between KUKE and the PBA, covered by the agreement signed today, is primarily aimed at promoting the new export support system through various activities for the benefit of banking sector entities, in particular through informing about new financial solutions introduced by KUKE. Additionally, the parties will intensify cooperation in other fields, collaborating, among others, in educational campaigns concerning trade finance.

As part of the export support system, KUKE has already thoroughly modified its offer of contract bonds granted with the support of the State Treasury. The related procedures and documentary requirements have been simplified, the scope of goods and services covered, and the possibilities of their use have been significantly expanded. Using KUKE guarantees strengthens exporters’ financial capacity, positively affecting their relations with financing banks and enabling them to significantly increase the scale of their operations.

In the near future, KUKE will introduce further solutions, e.g., guarantees for financing investment projects in Poland for exporters, which may include both Polish companies and foreign investors developing production in our country; working capital loan repayment guarantees and insurance of loans for the acquisition of enterprises abroad. In terms of creating documentation for clients, KUKE cooperates with CMS Law Firm.

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