Export Credit Agencies as Effective Instrument of Foreign Economic Activity Financial Stimulation

Economic Annals-ХХI: Volume 148, Issue 1-2(2), Pages: 23-26

Citation information:
Lyakhova, O., & Urvantseva, S. (2015). Export Credit Agencies as Effective Instrument of Foreign Economic Activity Financial Stimulation. Economic Annals-XXI, 1-2(2), 23-26. https://ea21journal.world/index.php/ea-v148-06/

Olena Lyakhova
PhD (Economics),
Associate Professor,
Kyiv National Economic University named after Vadym Hetman
54/1 Peremohy Ave, Kyiv, 03680, Ukraine
lahova@ukr.net

Svitlana Urvantseva
Lecturer,
Kyiv National Economic University named after Vadym Hetman
54/1 Peremohy Ave, Kyiv, 03680, Ukraine
urvanceva@ukr.net

Export Credit Agencies as Effective Instrument of Foreign Economic Activity Financial Stimulation

Abstract. Introduction. Time has shown an urgent need to create a special organizational component of state support to introduce valid financial instruments capable to stimulate export-import operations and ensure parity in Ukrainian goods promotion on the world markets.

Purpose of the article is to study possibilities for introduction of Export Credit Agencies (ECAs) as a financial instrument to stimulate export-import operations development in the context of national enterprises’ economic activity supporting on foreign markets.

Results. In many countries worldwide the matter of foreign economic activity’s efficiency improving depends on ECA activities, represented by separate insurance agencies, banks or departments of ministries, which implement public policy for exports support through insurance of export’s political and commercial risks and providing of relevant guarantees needed to ensure competitive conditions for their firms’ products/services promotion on the international markets. All these factors stimulate export activity and provide guarantees for investments abroad. The authors outline the main institutional forms of ECA; consider ECA’s most common products in the world financial markets; identify advantages and disadvantages of financing for ECA guarantees; analyze the components forming the cost of financing with ECA participation.

Conclusions. The matter of fact is that Ukrainian export system requires urgent actions to be taken by the state to improve its international competitiveness as well to development and support domestic export-oriented enterprises. Therefore, in order to accelerate Ukrainian exporters’ activity, we suggest establishing the National Export Credit Agency (NECA) as the public institution which would ensure funding from the state budget, carry out relevant insurance and provide priority guarantees for export-oriented enterprises.

Keywords: Foreign Trade; Financial Incentives; Export Credit Agency; Financing Сosts; Ukrainian Manufacturer

JEL Classification: F30; F33; F34

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Received 30.11.2014