EIAA: From the point of view of fulfilling obligations to the Armenian exporters, the companies of USA, Germany, Italy and France turned out to be the most unfair

ArmInfo. From the point of  view of fulfillment of obligations under export contracts, the  Armenian producers and exporters of the USA, Germany, Italy and  France were the most unfair. The Executive Director of the Export  Insurance Agency of Armenia (ESAA) Vazgen Abagryan expressed this  opinion on April 11 during a press conference. "These are the most  developed countries, but according to our statistics, however it was  illogical, it was the companies of these countries that turned out to  be the most unscrupulous," he stressed.

In this regard, he explained that by the end of 2016, the Agency  recorded 4 cases of non-fulfillment of payment obligations to  exporters of alcoholic beverages and food producers of Armenia. "In  total, the amount of debt that we returned in 100% volume amounted to  about 600 million AMD," he said.

Abagaryan said that in cases when it is not possible to come to an  agreement with foreign customers, EIAA reimburses up to 95%, of which  only 10% of the agency's capital. The remaining amount is covered  under the agreement with the Swiss insurance company on reinsurance  of risks.

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.

In 2016, the agency's portfolio amounted to 3 billion AMD. If at the  beginning of its activity in 2015, Russia had all the export  guarantees of the agency, then in the past year, the US, Germany, the  Czech Republic, Italy and other countries began to appear in export  directions.