Germany's Ministry of Economics is expanding the state investment guarantee programme for German companies that decide to invest in Ukraine, according to the press service of the Federal Ministry for Economic Affairs and Climate Action.
The decision means that the German government will now cover not only property losses up to the total loss of investments but also conversion and transfer risks for interest payments on investment-like loans.
"These are long-term loans that German companies often use in addition to regular equity participation to finance Ukrainian subsidiaries," the statement explains.
Furthermore, Germany will not charge a fee for applying for guarantees for investments in Ukraine until at least 2025. For Ukrainian guarantees, German companies will only pay an annual fee for the provision of the guarantee.
The expansion of investment guarantees became possible thanks to the National Bank of Ukraine lifting certain restrictions on transfers and currency exchange at the request of the German side.
Background. According to the German Federal Ministry of Economics, there are currently investment guarantees in effect for 14 companies in Ukraine, with a total coverage volume of €280 million, not including applications under consideration.