ArmInfo.The Export Insurance Agency of Armenia (ESIA) celebrates its 10th anniversary with the launch of a new third service: insurance for financing capital investments for the organization and development of export-oriented industries.
As EIAA told ArmInfo, the new service is intended for Armenian resident companies the y-o-y revenue from export sales of which is at least 20% of total income. This service allows exporters to receive collateral-free and relatively preferential financing from financial institutions / banks for modernization of production and capital investments. This service is aimed at creating new production capacities, reducing costs, increasing the competitiveness of products in foreign markets, which creates a strong foundation for stable growth in export volumes. Loans secured by insurance can be provided with a repayment period of up to 5 years, while the lender providing the loan will be insured up to 90% of the principal amount of the loan provided.
According to EIAA, as of September 31, 2023, the agency's authorized capital amounted to 2.6 billion drams. Since the establishment of the EIAA, the Agency has received more than 1,200 applications for insurance policies from more than 250 exporters. The total insured amount for the signed policies totaled more than 120 billion drams. The amount of insurance payments exceeded 1.120 billion drams, Insurance compensation was provided for a total amount of 725 million drams.
Established at the end of October 2013 by government decision, the state Export Insurance Agency of Armenia (EIIA) is engaged in export insurance in our country The main function of the agency is to insure Armenian resident exporters (small and medium-sized enterprises) against financial risks (losses) in cases where a foreign buyer does not fulfill its obligations under the export contract.
In 2016, the Agency introduced its second service - pre-export financing insurance, which will help producers in finding funds to expand production, subject to a guaranteed export contract. EIAA assured ArmInfo that in the near future the Agency will complete the development of a new line of insurance instruments for exporters, the implementation of which is planned for 2024.
