Tuesday, April 30 2013 13:53
State export insurance agency set up in Armenia
ArmInfo. The Armenian Parliament approved on Tuesday the second and final of draft amendments to the law on insurance.
Armenia's Economy Minister Tigran Davtyan said that the amendments suggest establishing a state export insurance agency by the end of this year. This implies that from now own the state will also be able to carry out insurance activities - something that has so far been the prerogative of private companies.
Davtyan said that the agency will be something like an export-import bank - a model that is generally applied worldwide. The agency will have a capital of 1.5bln AMD or $3.621mln and will insure companies against export-related risks.
Davtyan is sure that this will boost Armenia's exports. "The agency will help us to reduce reported-related risks and to lower the export loan rates," the Minister said.
He said that export loan insurance will not be compulsory and will also cover export programs.
According to Davtyan, the agency will be open for private companies and international financial organizations. "Optimally such agencies should be formed by private exporter companies. But in Armenia we have few export companies, who do not have sufficient funds for managing such an agency," the Minister said.
He pointed out that in the last two years the Armenian Government has created all "classical" instruments for stimulating production and export: "We already have a universal credit organization, are creating an industry development fund and now will set up an export insurance agency."