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Germany expands state guarantees for investments in Ukraine

Aug 7, 2023

On Monday, the German Federal Ministry of Economy announced the expansion of the state investment guarantee program for German companies that decide to invest in Ukraine, where a full-scale war continues.

This is stated in the statement of the Ministry.

The decision of the German Ministry of Economy stipulates that the German government will now cover not only property losses up to a complete loss of investment but also conversion and transfer risks for interest payments on investment-like loans.


"We are talking about long-term loans that German companies often use in addition to the usual equity participation to finance their Ukrainian subsidiaries," the statement explains.

In addition, the German government will not charge a fee for applying for guarantees for investments in Ukraine until at least 2025. Under the Ukrainian guarantees, German companies will only pay an annual fee for the guarantee.

The expansion of investment guarantees became possible due to the fact that the National Bank of Ukraine lifted certain restrictions on transfers and currency exchange at the request of the German side.

Author - Olena Madiak, 07/08/2023

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