YEREVAN, June 13. /ARKA/. The Union of Banks of Armenia (UBA) and the Export Insurance Agency (EIA) of Armenia signed last Friday a memorandum on cooperation. The document was signed by Samvel Chzmachyan, the head of UBA and Vazgen Abgaryan, the head of EIA.

According to Samvel Chzmachyan, the cooperation between UBA and EIA will have a positive impact on the country’s banking sector, which supports the Armenian exporters.

"The fruitful and mutually beneficial cooperation will focus on export promotion, creation of new and available financial resources," Chzmachayn said adding that the agency is already cooperating with ArmSwissBank and ACBA-CREDIT AGRICOLE BAN.

He stressed that the memorandum will allow to reduce the risks of exporters, encourage economic development by removing financial obstacles and risks for exporters.

For his part, Vazgen Abgaryan noted that it is difficult for exporters to evaluate all the risks when working with foreign partners, including their financial stability.

"The EIA works to facilitate exports by providing exporting companies with financial instruments for risk insurance, making at the same time it easier all the procedures in which participation of buyers is not necessary as well as providing low insurance rates – from  0.3-0.6% of the transaction cost," Abgaryan, said.

According to him, the EIA toolkit enables the availability of financial resources, without mandatory collateral, both at the stage of the organization of production and export process.

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. -0-