Armenian Export Insurance Agency ready to help exporters get loans at low rates
11.04.2017,
17:39
Armenia's Export Insurance Agency will help exporters receive loans at the rate of 7% per annum, the executive director of the agency, Vazgen Abgaryan, told journalists on Tuesday.
YEREVAN, April 11. /ARKA/. Armenia's Export Insurance Agency will help exporters receive loans at the rate of 7% per annum, the executive director of the agency, Vazgen Abgaryan, told journalists on Tuesday. According to him, based on the insurance policy provided by the agency, Armenian commercial banks are ready to provide exporters with trading factoring on more affordable terms and at lower rates and without collateral immediately after the export of the goods.
"In fact, immediately after the goods cross the border, the exporter will be able to receive a financing for up to 90% of the value of the goods, thereby saving their working capital," Abgaryan said. He noted that this allows exporters to hedge against possible risks of currency fluctuations.
According to him, 60 companies have applied for the service, and the necessary documents for 36 have already been approved.
"Based on policy provided by us, banks will provide loans at preferential rates – beginning from 7% per annum (for loans in euros, US dollars and Armenian drams). There are several partner banks that provide factoring without payment for intermediary services," Abgaryan said.
He also noted that in the spring of 2016 the agency launched the pre-export finance insurance service. In particular, if the company has a demand for exports, but there is no money to increase the turnover of production, it may apply to a commercial bank and receive a loan of up to 85% of the value of the expected export still at the production stage for the purchase of raw materials.
He stressed that in 2015 the agency worked only with one commercial bank; now it is already cooperating with 8 largest banks of the country.
"This will allow exporters to be serviced in the bank where they keep their working capital, which will greatly facilitate the possibility of receiving funds," Abgaryan said.
The Export Insurance Agency of Armenia was established in 2013 by the government as an effective instrument for stimulation of exports. The agency is a Central Bank-licensed insurance company with a capital of more than 2 billion drams. It began providing insurance services in March 2015. ($ 1 - 485.61 drams). -0-
"In fact, immediately after the goods cross the border, the exporter will be able to receive a financing for up to 90% of the value of the goods, thereby saving their working capital," Abgaryan said. He noted that this allows exporters to hedge against possible risks of currency fluctuations.
According to him, 60 companies have applied for the service, and the necessary documents for 36 have already been approved.
"Based on policy provided by us, banks will provide loans at preferential rates – beginning from 7% per annum (for loans in euros, US dollars and Armenian drams). There are several partner banks that provide factoring without payment for intermediary services," Abgaryan said.
He also noted that in the spring of 2016 the agency launched the pre-export finance insurance service. In particular, if the company has a demand for exports, but there is no money to increase the turnover of production, it may apply to a commercial bank and receive a loan of up to 85% of the value of the expected export still at the production stage for the purchase of raw materials.
He stressed that in 2015 the agency worked only with one commercial bank; now it is already cooperating with 8 largest banks of the country.
"This will allow exporters to be serviced in the bank where they keep their working capital, which will greatly facilitate the possibility of receiving funds," Abgaryan said.
The Export Insurance Agency of Armenia was established in 2013 by the government as an effective instrument for stimulation of exports. The agency is a Central Bank-licensed insurance company with a capital of more than 2 billion drams. It began providing insurance services in March 2015. ($ 1 - 485.61 drams). -0-
