KUKE and Bank Pekao S.A. sign a co-operation agreement
As part of the efforts to increase support for Polish businesses, KUKE and Pekao S.A. have concluded a framework agreement on a joint offer for exporters. KUKE S.A. will issue insurance guarantees for the payment of receivables under letters of credit opened by foreign banks - confirmed, post-financed or discounted by Pekao S.A. This is yet another agreement between the insurance company and the bank, facilitating foreign operations of domestic businesses and increasing security of their transactions.
The framework agreement with Pekao S.A. is an important step in reaching smaller companies with financial instruments, all the more so as KUKE is the only company in Poland that has been offering this type of insurance since 2009, with guarantees from the State Treasury.
Pekao S.A. joins a wide group of players who, thanks to the framework agreements, have access to the limits currently set by the Export Credit Insurance Corporation for 86 banks from 28 countries with a total value of nearly PLN 6 billion. The conclusion of the agreement with Pekao S.A. will thus contribute to increasing the availability of guarantees and strengthening the potential of Polish exports.
Support for the Polish economy is a necessary and multi-track process. Its strength depends on the friendly environment created for Polish entrepreneurs to operate in the domestic and foreign markets. Increased availability of tools to protect the company and its finances translates into increased willingness and courage to expand the scale of operations and explore new markets. That is why we are consistently expanding our co-operation with, among others, the banking sector, so that all entrepreneurs have equal access to instruments hedging their operations. The framework agreement with Pekao S.A. is an important step in reaching out to smaller companies with financial instruments as well. So far, we have granted over 1900 guarantees with a total value of almost PLN 1.5 billion, in particular in the trade with Belarus, Ukraine and Russia. I am convinced that the collaboration that has just begun will facilitate the operations of both the Bank's customers and the Bank itself, contributing significantly to many international successes of Polish exporters - said Janusz Władyczak, President of the Management Board of KUKE.
Thanks to the co-operation between Bank Pekao S.A. and KUKE, Polish companies will have access to financing instruments and settlement of their trade transactions in markets of most countries around the world. Export letters of credit will be dedicated to Polish exporters who are planning or already conducting foreign expansion in the form of export of goods or services to the markets of countries of higher risk, in particular to countries of Africa, Asia, Eastern Europe or the Middle East - said Michał Krupiński, President of the Management Board of Bank Pekao S.A.
Support for small and medium-sized enterprises is key to strengthening the Polish economy. It should be remembered that such businesses can be effective exporters, thanks to which they can strengthen their market position. All that is needed is to select the right hedging and business support tools. More than 60% of European SMEs have been asked to extend the payment term, and approximately 23% would increase employment if payments from contractors were made on time. As many as 33% declare that payment bottlenecks are a serious barrier to business development.