ArmInfo.Armenia's Premier Nikol Pashinyan has signed a decree appointing Vice-Premier Mher Grigoryan a member of the Board of Managers of the Eurasian Reinsurance Company (ERC).
The agreement on the establishment of the Eurasian Reinsurance Company (ERC) was signed in Yerevan on October 20, 2022 following a meeting of the Eurasian Intergovernmental Council by the heads of government of the EAEU member states.
As RA Minister of Economy Vahan Kerobyan previously stated, the ERC is being created as an international financial organization with appropriate regulations by five countries - Armenia, Russia, Belarus, Kazakhstan and Kyrgyzstan. The company will provide insurance support in mutual trade, stimulate the development of investment cooperation, provide export loans and interaction with credit agencies and insurance companies. The agreement was developed in the format of a multilateral international treaty, allowing it to have a status open to accession by other participants. The authorized capital of ERC will be 15 billion Russian rubles. Armenia's share will be 3% or 450 million rubles. The company is also granted privileges and benefits, its income, property and other assets, as well as operations and transactions are exempt from taxes, fees, duties and other payments.
The minister emphasized that the ERC head office will be located in Yerevan, which will be a very serious achievement for the country. Kerobyan noted that after February 24, 2022, a number of international reinsurance companies refused to insure cargo heading from Armenia to Russia, which led to difficulties for Armenian exporters. The creation of the EPC will solve this problem and lead to the emergence of an additional instrument for reinsurance of risks of the export insurance agency of Armenia, created in 2013 with an initial authorized capital of 1.950 billion drams. Currently, the authorized capital of the Armenian company is 2.5 billion drams. In 2020, transactions worth 20 billion drams were insured, and a year later - for 36 billion drams. However, in 2022 there was a decline due to the departure of international reinsurance companies.