Export Insurance Agency of Armenia (EIAA) celebrates its 10th  anniversary with launch of new service

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.