Page 60 - UKRRptSept22

According to Visa top manager Vira Platonova, in comparison with February, the daily volume of cash withdrawals in March dropped by 58%, and payments for goods and services by 73%. Due to difficulties with withdrawing cash from ATMs, withdrawing cash from store cash registers occurred more often in March: an increase of 20% in terms of transaction volume compared to February. In June, this indicator returned to pre-war levels. In addition, in June, cash withdrawals were already 77% ahead of the February figure, and trade operations increased by 107%. Moreover, compared to February, the daily volume of card-to-card transactions in June increased by 143%.
Ukraine will introduce insurance for investments during the war. The Cabinet of Ministers is working on a mechanism for investment insurance during martial law, which will allow investors to guarantee the safety of capital investments in Ukrainian assets, the Ministry of Economy reported. To this end, Ukraine is currently negotiating with the Multilateral Investment Guarantee Agency (MIGA), which is part of the World Bank Group. This organization has programs to insure investments against terrorist threats. According to Deputy Minister Oleksandr Hryban, “We are doing everything possible to make MIGA coverage available in Ukraine, so there is an opportunity to invest even now. To guarantee safety, investors will buy insurance, which is calculated depending on the investment amount. In case of force majeure, the investor will be able to receive compensation for these funds.”
Ukrainian merchants are obliged to introduce cashless payments by 2026. From January 1, 2023, all merchants working in cities with a population of more than 25,000 people must provide a cashless payment method for selling goods and services. Exceptions for trade enterprises with an area of up to 20 square metres are also eliminated. In addition, from January 1, 2024, merchants in settlements with a population of 5,000 to 25,000 people are also obliged to provide the ability for payment by card or other electronic means. This requirement will be introduced for settlements with a population of up to 5,000 people beginning January 1, 2025, except for several categories of entrepreneurs. Entrepreneurs in the first group of the single tax, merchants who sell goods through vending machines or carry out street trade, and sellers of products grown or fed by their own hands must implement this option beginning January 1, 2026.
The Export Credit Agency has supported UAH 188M in exports. The Export Credit Agency (ECA) insured exporters’ credit contracts totaling UAH 188M ($5.1M), the Ministry of Economy reported. The program’s bank partners approved 18 applications, which provide for the provision of funds to Ukrainian entrepreneurs for the supply of products to international buyers. Producers of corrugated paper and cardboard, roasted sunflower seeds, rubber products, furniture, and solid fuel boilers will receive credit funds. Currently, banks that carry out export lending with the support of ECA are processing 20 applications from suppliers in the amount of UAH 88.1M. "Currently, exporters can take a loan for up to UAH 20M at a favourable interest rate under the 5-7-9% program. To stimulate banks to conclude such credit agreements, the state guarantees the return of 85% of the funds if the manufacturer does not fulfil its credit obligations", noted Trade Representative of Ukraine Taras Kachka.
All Ukrainian banks will join the PROSTIR national payment system.
100% of Ukraine's terminals will accept cards from the national PROSTIR card payment system, the NBU reported. This resulted from UKRSIBBANK joining
60 UKRAINE Country Report September 2022 www.intellinews.com