Pact Promotes Ukrainian Purchases of US Goods, Private Sector Development
FOR IMMEDIATE RELEASE December 7, 1999
Marianna Ohe (202) 565-3200
The Export-Import Bank of the United States (Ex-Im Bank) and the Government of Ukraine today signed a Project Incentive Agreement that will facilitate Ex-Im Bank financing to support the export of US goods and services to Ukraine.
Chairman James A. Harmon, Ukraine Minister of Finance Ihor Mityukov, and Victor Yushchenko, governor of the National Bank of Ukraine, signed the agreement in conjunction with the visit to Washington of Ukraine President Leonid Kuchma to attend a meeting of the Binational Commission of the United States and Ukraine.
Today`s agreement will facilitate private sector opportunities in Ukraine, said Harmon. This is the culmination of efforts by both of our countries to find a way to finance US exports for creditworthy projects.
Under the terms of the Project Incentive Agreement, repayment of Ex-Im Bank financing will be based on the capture of financed projects` revenue streams in special escrow accounts held in banks approved by Ex-Im Bank. Financing under the agreement will not carry the sovereign guarantee of the Government of Ukraine, but will require host government support in project-related activities such as permit and license approvals.
Over the past five years, Ex-Im Bank has approved approximately $400 million in financing to support the export of US equipment and services to Ukraine for crop harvesting and other projects. Potential business in Ukraine is substantial with US companies expressing interest in obtaining Ex-Im Bank financing to sell products for a wide range of projects.
Ex-Im Bank is an independent US government agency that assists in financing the export of US goods and services to industrializing and developing markets all over the world by providing loans, loan guarantees, and export credit insurance. In fiscal year 1999, Ex-Im Bank supported nearly $17 billion of U.S. exports worldwide.