Abstract
This study examines the role of the ECA as an important element in the system of attracting investment resources. The functioning of the ECA is seen as an institutional stimulus for improving investment climate, promoting export, increasing the competitiveness of the national economy and developing export potential in both the private and public sectors. The author examines the opportunities that ECA creates in financing capital investment, which is especially important for state-owned companies in Ukraine. The author emphasizes the importance of ECA in creating conditions for attracting financial resources on favourable terms for state corporations which seek to purchase foreign expensive equipment, that do not have analogues on the domestic market. Major objective of this study is to develop recommendations concerning creation prerequisites for practical implementation of ECA in Ukraine. The author proposed new financial instruments which with support from international donors will contribute to the effective activity of ECA in Ukraine. These include the instrument of the provision of guarantees to the national EСA for the entry into international capital markets - ECA's emission guarantees; guarantees of support of EСA`S projects that will facilitate the cooperation with foreign financial institutions; as well as financial instruments that will perform the compensatory function of equalizing market interest rates for large projects and for long periods of time. The importance of establishing the register of Ukrainian state-owned enterprises which will be included into the ECA`s program in cooperation with IMF, WB, EBRD and other IFOs is emphasized.
Highlights
The development of the institutional environment is an important element in attracting investment into the country
The introduction of Export Credit Agencies (ECAs) in Ukraine relates to institutional factors contributing to the planning and implementation of reforms in the context of interaction with international donors and International Financial Institutions (IFIs); the supporting programs will be based on the signing of appropriate memoranda of cooperation
These include the instrument of the targeted provision of guarantees to the national EСA for the entry into international capital markets - ECA's emission guarantees, which will boost demand for bonds issued by the Ukrainian ECA, which will increase the range of interested investors
Summary
The development of the institutional environment is an important element in attracting investment into the country. The disadvantage of the Law No 1792-VIII is a condition that allows ECA to provide loans or guarantees to enterprises from the state budget, which contradicts the Consensus of Organisation for Economic Co-operation and Development (OECD) concerning basic principles of ECAs activity. According to this the model of Ukrainian Export Credit Agency is discussed with the International Monetary Fund (IMF) in the context of solving the problems of managing potential fiscal risks that could create ECA. The study of the best international practice of implementation specialized institutions that promote investment and capital inflows as a result of the expansion of enterprises into foreign markets will help to develop an optimal mechanism for the introduction of relevant market institutional units for Ukraine, taking into account the peculiarities of the national economic system
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