ArmInfo. The Export Insurance Agency of Armenia (EIAA) intends to increase its portfolio by 50% in 2017. The executive director of the EIAA Vazgen Abgaryan, noting that in 2016 the agency's portfolio amounted to 3 billion AMD, announced this on April 11 at the press conference.
According to him, the growth will be achieved through raising public awareness and trust of exporters. "The market understands the effectiveness of this tool and the practical experience that we can provide to business. At the same time, banks, offering customers to get financing through cooperation with EIAA, become for us direct sales," he said.
Abgaryan noted that in 2016 the Agency registered significant growth in all indicators. In particular, he said that by the end of 2016, 60 companies had applied to EIAA who had approved insurance limits for 4 billion AMD, which exceeded the figure of the past year by almost 4 times, insurance contracts were signed for 2.1 billion AMD, which is 5 times more than in 2015.
At the same time, Abgaryan noted that similar trends continue in 2017. So, according to him, in the first quarter growth on insurance limits was fixed at 75% to 1 billion AMD, with insurance contracts growing almost 5 times to 580.2 million AMD.
However, the head of EIAA said that along with the growth of indicators, in 2016 export directions were diversified. "If in 2015 Russia had all the export deliveries, last year, the US, Germany, the Czech Republic, and Italy were listed as export destinations," he summarized.
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.