Pivdenny Supports the Development of Ukraine’s Production and Export Potential

Pivdenny Bank continues to support the development of Ukraine’s production and export potential. This was emphasized by Andrii Bukin, Deputy Chairman of the Management Board of Pivdenny Bank, during the forum “Ukrainian Export: Through Challenges to the EU”.

“When a company seeks financing, it is important to clearly understand its goal. If a business is already operating abroad, it usually needs working capital – to build larger inventories, manage longer receivables, and execute larger contracts. And here the key challenge is the lack of collateral,” Andrii Bukin noted.

He highlighted that one solution could be involving an export credit agency or creating a transparent deal structure that enables the bank to assess cash flow and use direct contracts as a financing element.

“Many Ukrainian companies lack transparency because they trade through related non-resident companies. This means that the bank cannot see the end buyer and therefore cannot effectively structure the financing. So, my advice to exporters: a direct external contract significantly expands the opportunities to secure a loan for export expansion,” he emphasized.

According to the speaker, the situation differs when a company is only planning to enter foreign markets. In such cases, the financing is needed for investment projects – construction or modernization of production facilities.

“For the bank, it’s important to assess market stability, the feasibility of business plans, and to build financial models together with the client. Banks already know how to work with project financing and take on risks during the investment phase,” Andrii Bukin explained.

He added that this is precisely what the mission of the banking system should be – helping businesses develop production and grow exports: “We know how to do this – Pivdenny Bank has the necessary experience and tools.”