Ukraine is negotiating the creation of a Trust Fund to insure investors' risks
The Ministry of Economy expects to receive $510 million this year, which it can multiply by two due to the multiplier effect and from attracting private capital
Ukraine is planning to create a Trust Fund that could act as a reinsurance potential to increase the interest of international financial institutions in insuring investment projects.
This was reported by the press service of the Ministry of Economy.
"Investment insurance plays a key role in raising funds for Ukraine's recovery. In addition, war risk insurance is a multiplier instrument and can include many different capital market instruments. As a rule, the reboot of the investment market starts with debt instruments," said Oleksandr Hryban, Deputy Minister of Economy of Ukraine.
Negotiations are currently underway with international donors to establish and fill the targeted Trust Fund (the so-called insurance pool).
"The Trust Fund should provide 'first risk' coverage to attract private reinsurers, make insurance payments in the event of insured events related to war, political violence, negative government interference, and provide Ukrainian investors with the same protection options as foreign investors," commented Robert Bond, USAID Financial Sector Reform Project Manager.
Mr. Hryban added that Ukraine expected to receive $510 million this year, which it would be able to multiply by two due to the multiplier effect and from attracting private capital. Most of these funds will then be used to support long-term investments.
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