Ukraine and U.S. sign Memorandum of Understanding on exports (04/17/05)

Ukraine and U.S. sign Memorandum of Understanding on exports

U.S. Department of State

WASHINGTON - With Ukrainian President Viktor Yushchenko looking on, the Export-Import Bank of the U.S. (Ex-Im Bank) and the State Export-Import Bank of Ukraine (Ukreximbank) on April 5 signed a Memorandum of Understanding (MOU) that will help facilitate financing of U.S. exports to Ukraine.

Viktor V. Kapustin, Ukreximbank chairman of the board, and Peter Saba, Ex-Im Bank chief operating officer and general counsel, signed the agreement at historic Blair House, the official guesthouse of the president of the United States.

"We consider the United States as a strategic partner in all fields, including economics," Mr. Kapustin underlined, "and this memorandum is the first step to facilitate the deepening of our cooperation for the benefit of businesses of both nations."

"Ukraine is an important partner of the United States," said Mr. Saba, "and we believe that its future holds significant promise for growth and investment."

Under the agreement, Ex-Im Bank and Ukreximbank intend to work together to establish a Credit Guarantee Facility of up to $50 million (U.S.) with Ukreximbank as obligor, under which Ukreximbank would make credits available to Ukrainian purchasers of U.S. goods and service exports.

As of the end of fiscal year 2004, Ex-Im Bank's outstanding loans, guarantees and insurance commitments involving exports to Ukraine totaled just under $180 million.

The MOU also encourages joint exchanges of information in an effort to facilitate transactions involving U.S. exports to Ukraine.

In a joint statement issued by Presidents George W. Bush and Yushchenko after their meeting on April 4, Mr. Bush said, "As Ukraine undertakes far-reaching reform at home, it can count on the United States for support. We applaud Ukraine's commitment to curb corruption, promote the rule of law and improve the business climate."

Ukreximbank, as state bank, promotes economic development of Ukraine, gives credit and financial support for development of foreign trade relations, restructuring and development of export-oriented and import substitution sectors of the economy. For more information on the Ukraine Export-Import bank, visit http://www.eximb.com.

Ex-Im Bank this year marks its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance and direct loans. In fiscal year 2004, Ex-Im Bank, an independent U.S. federal agency, authorized financing to support approximately $17.8 billion in U.S. exports worldwide - a 25 percent jump from a year earlier.

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