OPIC ON INVESTING IN UKRAINE.
/By Lyubov Batih/
George Munoz, President and CEO of the Oversees Private International Corporation visited Ukraine in December at the threshold of a new millennium. He was impressed by the 5% economic growth of the country. However, he noted that economic reforms in many countries grew more rapidly. Additionally, they moved much more quickly to eliminate corruption, implemented major economic reforms and got rid of excessive red-tape, etc. much faster than Ukraine. Therefore, American investors prefer to invest in those countries.

Despite all the problems that Ukraine has not yet solved, one area in which Ukraine remains attractive is in mineral resources. G. Munoz encouraged Ukraine to accelerate the pace of Ukraine's economic and political reforms as the best way to attract U. S investment to the country. Munoz said: "OPIC attaches great importance to the success of Ukraine's transition to a democratic state with a flourishing market economy, and there is no doubt that a strong commercial relationship between the two countries can provides a foundation for good overall relations".

Munoz also noted that since the signing of the investment agreement between OPIC and Ukraine in 1992, OPIC had aggressively sought opportunities to support American investments in Ukraine. Since 1972, OPIC has committed approximately $160 million in OPIC insurance and financing for nine investment projects in Ukraine, including $138 million in political risk insurance and $22 million in OPIC financing in sectors varying from fiber optics, telecommunications, manufacturing, hotel, office to building management, defense conversion and an auto dealership. 		  OPIC also supports five regional and four global direct equity funds totaling more than $1.3 billion of committed capital that can invest in Ukraine. OPIC-supported funds have invested more than $84 million in 40 companies in Ukraine
Nevertheless, OPIC remains concerned about Ukraine's commitment to creating a stable environment for investment. Also, a claim that OPIC had to pay last year for some problems concerning an investment in Ukraine could have an adverse effect on its investment climate. Future OPIC-supported investment will depend largely on a satisfactory and expeditious resolution of this claim and improvements in the investment climate.

During his visit to Kiev, G. Munoz met with Parliament ("Verkhovna Rada") deputies and with other government officials. He was satisfied with their understanding of economic reforms. Today OPIC is ready to invest $500 million in a number of hotel, energy, production and finance projects. About $80 of the sum is allotted for political risk insurance. On the whole, OPIC can fund a project worth from $250, 000 to $200 million. Either side can propose a project but only an American representative can receive money. OPIC's mid-term loans are usually for 12 years. Argentina, Russia, and Brasilia enjoyed the biggest OPIC's support. They received $1,9 billion, $1,9 billion, and 2,1 billion respectively.

"We do not see a basis for increasing political risk now" - said OPIC's President. "The political scandal in Ukraine will surely deter investors. But it is important that the country resolves it transparently. Upon my return to the United States, I'll tell that Ukraine needs support and reforms will be implemented. I'll also advise investors to start their businesses here, because this country has great people."