KUKE restores insurance cover for Ukraine
Starting 13 June 2022, Polish companies will be able to insure their transactions with Ukrainian buyers concerning exports of goods and services that are exempted from the payment moratorium introduced by the National Bank of Ukraine.
KUKE, with the support of the Polish government and following the positive decision of the Export Insurance Policy Committee, reestablished the possibility of insuring receivables under export contracts with Ukrainian buyers. The insurance may cover goods or services excluded from the payment moratorium payment moratorium introduced on 24 February 2022 by the National Bank of Ukraine. The full list of is published on the website of the Ukrainian parliament.
“We see this as an important step in restoring trade between Poland and Ukraine, as well as a sign of solidarity with our neighbor in these trying times. We are glad that we are once again offering Polish exporters insurance cover for transactions with their Ukrainian business partners. We are currently restoring cover for exports of goods or services excluded from the payment moratorium introduced at the beginning of the war, which prevents Ukrainian entities from making foreign currency payments. The list of items not covered by the moratorium is wide-ranging and includes mainly basic necessities for the population, i.e. food, drugs, fuel and imports critical for the functioning of the country's economy, i.e. for the energy and security sectors”.
The insurance is available both for companies that have already insured their receivables with KUKE and for those that have never worked with KUKE before. The insurance cover will be extended on the basis of the standard General terms and conditions of the Policy Beyond Borders credit insurance facility.
A Polish exporter who wants to deliver goods to a Ukrainian business partner should first agree with him whether the ordered goods are on the list of goods excluded from the payment moratorium. KUKE will also verify whether the Ukrainian business is active and whether the ordered products are excluded from the payment moratorium.
By the end of 2022, KUKE will be able to grant credit limits for Ukrainian companies worth PLN 500 million.
"Comparing this amount with the value of credit limits used by Polish exporters last year, and taking into account the volume of the current trade turnover, which is almost half lower than before the outbreak of the war, it seems that the needs of Polish entrepreneurs will be satisfied in the near future. We also hope that when analyzing the current situation and the uncertain market environment, exporters will see the advantages of the solutions offered by KUKE, ensuring protection, among other things, from political risk, such as the introduction of a payment moratorium, or the force majeure risk, such as war. We have recently cut the premium rates by 35 per cent for the Policy Beyond Borders credit insurance facility covering 160 market across the globe. This may encourage Polish companies to open up to new export new markets".
In 2021, KUKE insured goods and services worth PLN 1.5 billion exported to the Ukrainian market, thus covering 5 per cent of total exports to Ukraine.
It is worth noting that only a few European export credit agencies allow for limited insurance of sales to Ukrainian, which puts Poland in the forefront of countries actively supporting both its business and the economy of Ukraine.
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