Monday, March 18 2013 20:13
Creation of a state export insurance agency with a capital of over 3.6 mln USD to be over by late 2013
ArmInfo. Creation of the state export insurance agency of Armenia will be over by late 2013, Armenian Economy Minister Tigran Davtyan said at today's parliamentary hearings on the bill of amendments to the Armenian Law "On insurance and insurance activities".
He said that the work at creation of the specified structure with the support of international experts has already started. Davtyan explained that according to the amendments, the state will have a right to take up insurance, which has been the prerogative of private companies so far.
The minister pointed out that the specified agency will be managed by professional managers, it will be created in line with the practice of export-import banks, whose authorized capital is owned by the state. In the case of the Armenian state export insurance agency (with a capital of over 1.5 bln AMD or $3.621 mln) the matter concerns insurance of the companies' export-related risks, and this will contribute to the export growth from Armenia.
Davtyan pointed out that by creating this agency, the state will contribute to reduction of export-related risks that may arise when the companies attract export credits or delay the payments, or when payments are delayed by the foreign company, which is a party to the export contract. He added that insurance of these risks by the state will contribute to reduction of export loan interest rates.
The minister said that insurance of export loans will not be compulsory. In addition, insurance will cover not only loans, but also export programs in general.
Davtyan said that the private sector and international financial organizations will have a share in the state insurance agency's authorized capital, and this will make the agency's activity flexible. He thinks that the best option would be formation of the agency on the basis of consolidated participation of export companies in the agency's authorized capital, which would allow the state to save money. But private companies made no decision to create such an agency given the small exports from Armenia, expenses on the agency management and other aspects.
He also stressed that over the past two years the Government has launched the process of creation of all "classical" instruments to support industry and export.
To note, the first reading voting on amendments and additions to the Law "On insurance and insurance activity" is scheduled for March 19.
To recall, earlier First Deputy Ministry of Economy of Armenia Karine Minasyan told ArmInfo that though the state is the sole shareholder of the company, its activity will be strictly regulated by the Central Bank of Armenia. "The company will play by the same rules as other players in the market do", she said.
Minasyan also said that the agency will not become a preferential company; it will be a structure organized on the basis of market principles and will supplement the functional scope of the market with new products such as insurance of political, system and financial risks.
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