YEREVAN, February 19. /ARKA/. The Armenian Parliament’s Finance and Budget Committee has approved a draft law calling for ratification of Armenia’s agreement with the Eurasian Economic Union (EEU) on mutual recognition of bank guarantees in municipal and state procurements.
According to Deputy Finance Minister Avag Avanesyan, the Armenian side already recognizes bank guarantees provided by other EEU member states for companies wishing to participate in procurement tenders, and ratification of the agreement will allow Armenian companies to participate in procurement tenders announced in other countries.
The following conditions must be met in order for the guarantees to be recognized: the bank must not have participated in financial rehabilitation programs during the last 6 months, its total capital must be at least $60 million, and its capital adequacy ratio must be at least 12.5%.
In addition, in the event of litigation over a bank’s failure to honor its guarantees, member countries will not recognize that bank’s guarantees for a period of 12 months from the effective date of this decision. –0–
