The Export Credit Insurance Corporation (KUKE) signed an agreement with Etihad Credit Insurance (ECI) of the United Arab Emirates (UAE) today for the mutual reinsurance of export financing transactions, the institution said. The number of such agreements linking KUKE with its global counterparts has increased to 17.
“From now on, we can take some risk in transactions in which exporters from our countries are involved. This will be a great help for Polish exporters cooperating with Emirati cooperators on third markets. It will be easier for them to join consortia under international projects and obtain financing on attractive terms, and then efficiently insure them. The participation of KUKE in the transaction means that Polish banks are more willing to lend money to domestic companies for foreign expansion. This agreement is based on reciprocity, which means that the scope of export insurance guaranteed by the Polish state treasury may include supplies partially performed by Emirati entities insured by ECI, ”said Janusz Władyczak, President of KUKE.
The agreement means that KUKE may, inter alia, reinsure loans financing Polish supplies as part of larger export projects insured by a partner from the United Arab Emirates.
KUKE reported that in the years 2001-2020 the value of goods shipped to all Middle East countries increased from approximately USD 0.5 to USD 5.1 billion, and their share in Polish exports increased from 1.2 to 2.2%.
KUKE insures the commercial transactions of Polish entrepreneurs. As the only company in Poland, it also provides insurance for long-term export investment projects and products with guarantees from the State Treasury. It belongs to the PFR Group.