YEREVAN, February 29. /ARKA/. The National Assembly of Armenia has approved the ratification of a Eurasian Economic Union (EEU) agreement on mutual recognition of bank guarantees in municipal and state procurement.
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–
