Romanian Bank Exim Banca Romaneasca Now Participates in the InvestEU Ukraine Export Credit Guarantee Scheme
The InvestEU Ukraine Export Credit Guarantee Facility, a €300 million program, has been launched to encourage trade between the European Union (EU) and Ukraine. This initiative, backed by the EU budget and managed by the European Investment Fund (EIF), aims to reduce risks and enable continued trade, thereby supporting the private sector and strengthening European partnerships [2][5].
Currently, ten EU Member States are participating in this initiative, with Romania being one of them. Exim Banca Romaneasca, a Romanian universal bank with over 30 years of experience in banking, is set to receive €43.75 million of the total guarantees [1]. This participation reaffirms Exim Banca Romaneasca's commitment to supporting Romanian companies that wish to contribute to Ukraine's reconstruction.
The facility, which started in mid-2024, is designed to benefit more than 550 EU exporters, including 25 in Romania. It is projected to encourage EU exports of goods such as machinery, construction materials, advanced technologies, and services to Ukraine [3]. This initiative advances Ukrainian efforts to integrate into the European single market and to become a member of the EU [6].
Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, has stated that the facility is a strategic tool that helps businesses on both sides mitigate risks, unlock opportunities, and build confidence in Ukraine as a market [4]. Valdis Dombrovskis, European Commissioner for Economy and Productivity, Implementation and Simplification, has also praised the facility, calling it a significant step forward in further integrating the EU and Ukrainian economies [7].
The facility is supported by nine other EU countries: Denmark, Finland, France, Germany, Italy, Latvia, Slovakia, Slovenia, and Spain [8]. It has generated immediate interest from EU businesses, ensuring demand for the full €300 million in EIF backing [9].
In addition to its role in supporting exports, Exim Banca Romaneasca also operates in the area of state insurance, under a mandate from the Romanian state. It is the only specialized financial institution in Romania with a mandate to promote exports [10].
The European Investment Fund (EIF) also plays a crucial role in this initiative. As an institution that supports Europe's Small and Medium-sized Enterprises (SMEs) by improving their access to finance, the EIF's support helps businesses to maintain existing exports to Ukraine and encourages new EU trade ties with the country [11].
As negotiations and agreements continue, it is anticipated that more countries will join the InvestEU Ukraine Export Credit Guarantee Facility, further bolstering EU-Ukraine trade relations.
- The participation of Exim Banca Romaneasca in the InvestEU Ukraine Export Credit Guarantee Facility signifies their intent to invest in Ukrainian businesses, using financing from this program.
- As the European Investment Fund (EIF) plays a crucial role in this initiative, it allows for more EU businesses to access funds, thereby enabling increased investing in Ukraine and strengthening the overall business partnership.
