 |
Ministry of infrastructure of Ukraine Ukrainian State Air Traffic Services EnterpriseSafety. Efficiency. Responsibility |
|
|
|
|
|
|
| News |
| 10th July 2020 |
| UkSATSE obtains a long-term EBRD loan to support its liquidity |
Ukrainian State Air Traffic Services Enterprise (UkSATSE) will obtain the loan amounting to EUR 25 million from the European Bank for Reconstruction and Development (EBRD) for the replenishment of the company's current assets. The correspondent agreement has been signed today in the presence of the Minister of Infrastructure of Ukraine Mr. Vladyslav Krykliy by Mr. Mark Magaletsky, Associate Director, Deputy Chairman of the EBRD in Ukraine, and Mr. Andriy Yarmak, Acting Director of UkSATSE, at the Ministry's premises.
"The global crisis due to the impact of COVID-19 pandemic is a serious challenge for Ukraine as the entire transport sector requires support, and primarily – aviation. Being the economy's influencing field, it serves as a powerful incentive for the majority of its branches. We express our gratitude to the EBRD, which is a reliable partner of Ukraine, in particular in financing the vital infrastructure projects and supporting the industry’s enterprises”, noted Vladyslav KRYKLIY, Minister of Infrastructure of Ukraine.
 A three-year loan is the extremely essential and timely support of the liquidity of a strategic enterprise, which has faced a very complicated financial situation due to the global crisis of the aviation industry.
“The European Bank for Reconstruction and Development is pleased to support its longtime partner UkSATSE in the complicated situation, which will allow the company to cope with the impact of global crisis and resume its normal operations in future. This financing is part of the EBRD’s solidarity package, designed to ensure seamless functioning of the critical infrastructure”, said Mark MAGALETSKYI, Deputy Chairman of the EBRD in Ukraine.
"The intended use of the loan will be replenishment of the current assets for defray to the wage fund, mandatory payments and financing the operational costs, crucially important for the air navigation services provider (ANSP). This will allow accumulating definite safety margin for the gradual recovery of the company from the crisis and will become the basis for the quality functionality of a strategic enterprise to the fullest extent", stated Andriy YARMAK.
UkSATSE is not financed from the state budget, it functions only on its own funds received for the air navigation services provided to the airlines. As a result of the unprecedented crisis in the industry, the national ANS provider has been endangered by the loss of capacity to maintain its daily routines and meet social obligations to its employees.
In contrast to the airlines, Ukrainian air navigation services provider cannot shut down its performance being an integral part of the state critical infrastructure. In order to secure the sustainable level of safety in the airspace of Ukraine, it is essential to ensure the enterprise’s continuous operation.
In order to ensure seamless operation, UkSATSE has already taken a number of anti-crisis measures, aimed at cutting the operational and maintenance costs to the minimum possible level that does not affect safety of air navigation services.
However, the foreseen decline in cash flows in 2020 will result in a shortage of the current assets for financing operational activities in the coming months. It should be notified that further medium- and long-term forecast for Ukraine on the resumption of air traffic in the airspace of Ukraine fluctuate between positive recovery rate, which exceed 75% of traffic volume in 2019 by the end of the year 2020, and a long recovery period stretching for 3 years.
Andriy YARMAK said, "Taking into account the fact that aviation and related industries in the world's developed economies generate up to 10% of the national GDPs, the issue of its recovery is a crucial matter at the state level. Besides, smooth operation of the national ANS provider is a cornerstone for flight safety in the airspace of any country. Therefore, through the EBRD financial support the opportunity to ensure full functioning will be given not only to the state enterprise UkSATSE, but also to the air navigation system of Ukraine and aviation industry in general." |
| Source: UkSATSE |
|
|
|
|
|
|
 |
|
|
|
 |
Airport, Boryspil, Kyiv region, Ukraine, 08300, phone: (+38044) 235-21-10, fax: (+38044) 281-84-84
© 2005-2024 Uksatse |
|
