ArmInfo. Export Insurance Agency of Armenia (EIAA) and ArmSwissbank signed today a memorandum, which envisages deepening of cooperation for assisting export-oriented businesses and introducing new export-insurance financial products in order to give local producers an opportunity to enter new foreign markets.
During the signing event the advantages of the new efficient instrument of pre-export financing were presented. According to EIAA Executive Director Vazgen Abgaryan the new product will allow the banks and commercial organizations to significantly reduce the credit risks, while the borrowers will be able to get funds without collateral. "According to our surveys this product will need 3-5 years of institutional formation in the financial market of Armenia. For this reason we intend to activate cooperation also with other commercial banks of Armenia in the upcoming months", Abgaryan mentioned. He emphasized that within the cooperation with
ArmSwissbank, export deals amounted to 450 mln AMD have been supported under the Agency's export insurance.
Executive Director of ArmSwissBank Gevorg Machanyan in his turn noted that cooperation with EIAA was caused by the state government's interest in supporting export-oriented industries. "During 1 year of cooperation with EIAA we provided 31 loans amounted to 1.2 mln USD in total, at 8-14% annual interest rates depending on the sources of financing", he said. Machanyan also mentioned that assistance under cooperation with EIAA is provided to all exporters not depending on the field of economy, who have enough amounts of good-quality
products to sell abroad.
Vazgen Abgaryan in a talk with ArmInfo's correspondent mentioned high export potential of Armenian enterprises, however he stated that for ensuring sustainable growth of export it is necessary to combine efforts and offer the market as many new solutions as possible. The
new product of pre-export financing is aimed at solving one of the main problems of the producer-lack of defense funds for enlargement of export activities.
To recall, Export Insurance Agency of Armenia Insurance CJSC was founded on October 23, 2013 by the decision of the Government of the Republic of Armenia within the framework of the export- oriented industrial policy. The Company provides insurance against the financial losses incurred as a result of non-payment for supplied goods by the Foreign Buyer or its Bank, which has a payment obligation under the Contract. The services offered by our Company are efficient solution for the control of export risks of our customers. EIA is a fully state-owned company.
To note, ArmSwissBank CJSC was founded on 7 October 2004. The Bank's shareholders are "HVS Holding" LLC registered in Luxembourg and "BELEGINGSMACHEPIJ JONGO" LLC registered in Holland.. Shareholders own respectively 80% and 20% of “ARMSWISSBANK” CJSC’s shares. Both companies are managed by Vartan Sermakes, who is also the founder, owner and the Executive Director of the Swiss “Franc Muller Watchland” company. The Bank specializes in corporate banking, investment banking
and private banking.