YEREVAN, June 7. /ARKA/. A memorandum of cooperation ACBA-CREDIT AGRICOLE BANK has signed with Armenia’s Export Insurance Agency (EIA), will enable the Bank to finance exporting companies by means of insurance certificates issued by the Agency, but on condition that deferred payments are used to export goods, the bank said in a press release.
ACBA-CREDIT AGRICOLE BANK CEO Hakob Andreasyan noted that export insurance allows the Bank to finance the cash assets (export factoring) of exporter companies by simplified procedures. According to him, this product will minimize the risks both for the bank and exporters.
The Executive Director of Export Insurance Agency Vazgen Abgaryan, in turn, said that the Agency’s mission is to promote exports from Armenia. The most important component of its insurance instruments is to secure the availability of collateral-free and reliable financial resources for exporters.
“The agreement signed with ACBA-CREDIT AGRICOLE BANK will give a new push to raising the awareness of numerous bank customers about the Agency’s services, especially in the regions of Armenia”, he said.
Abgaryan also expressed confidence that as a result of cooperation with the bank the demand for this still new product in the local market will grow and contribute to increasing the competitiveness of the Armenian exporters, expanding production and opening new markets.
The Export Insurance Agency was established in October 2013 by the government of Armenia as an effective tool to stimulate exports. The company’s activities focus on insurance of exporters or export-financing banks from the risk of nonpayment by the borrower / buyer, as well as from lower export rates.
ACBA-Credit Agricole Bank was established in 1995 as part of European Union’s TACIS program. In September 2006, France’s Credit Agricole Group, investing a great deal in the bank’s capital, became its biggest shareholder. —0—-
