Berlin, Germany, June 23, 2011 --(PR.com
)-- As Ukraine still struggles to repair its standing in the global export markets, Germany's Euler Hermes and Ukrainian trade development firm IBcontacts held a seminar for the country's corporates.
Hermes made clear the issues and criteria for borrowing, trade finance and credit analysis to managers from 65 commercial and industrial Ukrainian firms.
"Trade finance involving a large ECA is today one of the most effective, affordable and cheap ways to attract finance by domestic companies in order to implement trade projects with other countries," says Kateryna S. Barabash, general manager at IBcontacts (ibcontacts.com.ua).
"The problem is that very little is known about this instrument here in Ukraine."
Germany is the second largest trading partner for Ukraine after Russia.
Germany is keen to increase trade with Ukraine's power sector and environmental technologies.
"From our side, we will do our best to remove existing barriers to promote trade finance in Ukraine, for example, problems in customs clearance and value-added tax compensation to exporters," adds Anke Feldhusen, deputy ambassador at the German embassy in Ukraine.
According to the German ECA, Euler Hermes covered risks of Ukrainian companies for a total of 448 million euros last year, which amounts to only 10% of Ukrainian commercial market needs.
"This figure indicates a significant potential for trade deals that can be implemented between Ukrainian and German trade companies," says Thorsten Nissen of Euler Hermes.