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Over four million jobs created or supported, almost €16 billion of investment to support digitisation, or €96 billion of investment to support industrial transformation, and over 53 thousand SMEs supported. These are some of the figures that describe the InvestEU initiative. It is a European Union (EU) programme that aims to trigger private investment of more than EUR 372 billion, supporting private and public investment in green technologies, innovation, social infrastructure and small and medium-sized enterprises, primarily within the EU’s internal market. Together with European and international financial institutions, the EU is helping companies and investors to better access finance across Europe. An example is the railway modernisation project in Italy, which has had a significant impact on the economic development of the region. InvestEU investments have also been used for an affordable and quality housing project in Catalonia, Spain, to strengthen European aerospace companies, or to advise on renovation projects in Italy that are transforming schools into safe and accessible buildings.

At the same time, €300 million is earmarked under the InvestEU programme for a pilot project between the European Investment Fund (EIF Export Credit Pilot) and export credit agencies to support European exports to Ukraine. The objective of this instrument is to reduce the financial risks of exporting to Ukraine through a portfolio guarantee for export credit agencies financing and insuring export receivables and buyer credits. Eximbanka has been active in the programme and in March this year the European Investment Fund (EIF) approved its application for guarantee coverage for an insurance portfolio of EUR 20 million. The EIF Export Credit Pilot thus increases Eximbanka’s capacity to support Slovak exports to Ukraine. The guarantees will cover exports of goods and services from small and medium-sized enterprises from Slovakia to customers in Ukraine.

For Slovak exporters, this will in practice mean a reduction of the risk of non-payment by Ukrainian partners and thus a greater willingness to do business in the region. This is particularly important for small and medium-sized enterprises, which often do not have sufficient in-house capacity to manage export risks, and also need support in entering markets with a higher level of business risk. Eximbanka’s support provided in the framework of the pilot project of cooperation with the EIF can therefore be a decisive factor in their decision to export to Ukraine. The instrument also undoubtedly contributes to increasing the competitiveness of Slovak companies on international markets. It will enable them to respond to the challenges of the current geopolitical situation, diversify their export portfolio and establish new business relations in an environment that is both risky and promising. Access to such innovative tools can boost their confidence in international business and increase their willingness to invest in longer-term business projects.

In the long term, the EIF Export Credit Pilot can contribute not only to stimulating the appetite of Slovak exporters to do business with Ukrainian partners, but also to strengthening Slovakia’s position as an active partner in the process of supporting and stabilizing the Ukrainian economy in an organic way. The experience gained during the pilot phase can serve as a basis for extending similar mechanisms to other risk markets in the future. Ultimately, this is not just a new export support tool, but a strategic approach to strengthening economic diplomacy and supporting the business sector in a difficult geopolitical environment.

Author: Matúš Šársky Director of International Relations of EXIMBANKA SR

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