ArmInfo. If there is an insurance policy of the Export Insurance Agency of Armenia (EIAA), Armenian exporters can obtain financial factoring at 8 commercial banks at affordable interest rates, without collateral and on favorable terms.
The Executive Director of ESAA Vazgen Abgaryan at a press conference announced this on April 11, noting that the rates for loans in the currency start at 7% per annum, and some partner banks provide financing without commission. "This will allow the exporter to avoid currency risks and more effectively manage working capital," he stressed.
Abgaryan explained that immediately after crossing the goods of the customs border of Armenia, the exporter without collateral can receive financing from the bank for up to 90% of the value of the goods cost, which will allow to keep its working capital in the medium term. At the same time, he noted that for the entire financial package the exporter will pay a commission of 1.2-1.3% of the value of the exported goods. According to him, as part of the trading factoring of the incoming 60 applications, 36 have already received approval for obtaining an insurance limit.
In particular, he stressed that in 2015 EIAA cooperated only with 1 commercial bank, whereas in 2016 their number increased to 8, and with another three negotiations on cooperation are under way. "This will allow exporters to be serviced in the bank where they have accounts opened and current assets, which will greatly simplify the process of obtaining financing," he said.
O 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.
