Germany Extends Guarantee Conditions for German Investments in Ukraine

08/07/2023 11:23 am

Berlin. The federal government has extended the guarantee conditions for German investments in Ukraine. From now on, not only property damage will be covered up to the complete loss of the investment, but also conversion and transfer risks for interest payments on equity-like loans will be secured, the Federal Ministry of Economics announced on Monday.

These are long-term loans that German companies often use to finance Ukrainian subsidiaries. This coverage extension is now possible because the National Bank of Ukraine has lifted certain transfer and foreign exchange restrictions, the ministry said. “The reconstruction of Ukraine is a generational task for Ukraine and the international community,” said Economics Minister Robert Habeck (Greens). “The closer economic ties are with Ukraine, the sooner work can begin.”

According to the Ministry of Economy for Ukraine, there are currently investment guarantees for 14 companies with a total cover volume of 280 million euros. Other companies have submitted applications for cover. As a result, guarantees are given if the investment is classified as “worthy of support and justifiable in terms of risk”. The new resolution applies to both existing and future investment guarantees for equity-like loans.

In addition, for a limited period until 2025, no more application fees will be charged for Ukraine applications. For Ukraine guarantees, German companies only have to pay the annual guarantee fee.

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