Tuesday, April 11 2017 18:25

ArmInfo. Within the framework  of the "Pre-Export Financing" service of the Export Insurance Agency  of Armenia (EIAA), five export-oriented enterprises of the country  received financing for a total of 600 million AMD. On April 11, in an  interview with ArmInfo correspondent, the Executive Director of EIAA  Vazgen Abgaryan said, noting that 4 more applications are under  consideration.

According to him, within the framework of this service, the Agency  cooperates with CJSC "SME Investments", ACBA Credit Agricole Bank and  Armswissbank. In this regard, Abagryan said that negotiations are  under way with three more Armenian banks to include this service in  their line of trade finance products. "We must admit that this is a  new service and the market still needs time to test it," he said.

TO note, the "Pre-export financing" service of EIAA was launched in  the Armenian market in the spring of 2016, and involves providing  financing to exporters up to 80% of the value of the volume of  exported products at the production stage, in particular for the  purchase of raw materials and for covering transportation and customs  expenses. EIAA undertakes to cover 95% of the risks of partner banks.   To note, the Insurance Company CJSC "Export Insurance Agency" was  established in late October 2013 by the decision of the Government of  the Republic as an effective tool for export promotion .The main  function of the Agency is insurance of exporters (small and medium  enterprises) that are residents of Armenia from financial risks  (losses) in those cases when the foreign buyer does not fulfill his  obligations under the export contract on the terms of payment for  goods placed in installments. Trade risk, when the buyer refuses to  pay due to bankruptcy or without legal justification, or political  risk in case of restriction of trade or bank transfers, prohibition  or restriction on currency exchange, as well as natural disasters,  wars and inability to pay due to other political events.